Estimate annual property taxes for any home value across all 50 states. Compare rates instantly.
With home values elevated in most markets, property tax bills are higher in absolute dollar terms in 2026 even where effective rates haven't changed. New Jersey leads the nation at 2.49%, while Hawaii remains the lowest at 0.29%. For a $450,000 home, monthly property taxes range from $109 in Hawaii to $934 in New Jersey — a $825/month difference that dramatically affects affordability and monthly cash flow.
Property taxes are the primary funding mechanism for local government services — schools, police, fire departments, roads, and parks. They're set at the local level (county and municipality), which is why there's enormous variation even within the same state: a home just across a county line might have dramatically different property taxes.
Annual Tax = (Market Value × Assessment Ratio − Exemptions) × Mill Rate
Effective Tax Rate = Annual Tax ÷ Market Value × 100
The "mill rate" (or millage rate) is the property tax rate expressed in mills (tenths of a cent). A 10 mill rate means $10 per $1,000 of assessed value. Counties typically apply multiple overlapping mill rates for different taxing districts (county, city/township, school district, fire district, etc.).
Mortgage lenders collect property taxes monthly through your escrow account. They estimate your annual tax bill and divide by 12 to add to your monthly payment. When comparing homes in different states (or even different counties in the same state), always factor in property taxes. A $350,000 home in New Jersey costs about $8,715/year in property taxes; the same price home in Alabama costs just $1,435/year — a $7,280/year ($607/month) difference in real purchasing power.
| State | Eff. Rate | Annual Tax | Monthly |
|---|---|---|---|
| New Jersey | 2.49% | $11,205 | $934 |
| Illinois | 2.23% | $10,035 | $836 |
| Texas | 1.80% | $8,100 | $675 |
| National Avg. | 1.10% | $4,950 | $413 |
| Hawaii | 0.29% | $1,305 | $109 |
Difference between NJ and HI: $9,900/year ($825/month) for an identical $450,000 home.
Select your state for a detailed breakdown of effective property tax rates, homestead exemptions, and a personalized property tax calculator.
Compare rates from 500+ lenders. Free, no obligation, no credit score impact. Get pre-approved in minutes.
Compare Rates Free →We may earn compensation when you connect with services through this site.
New Jersey has the highest effective property tax rate in the nation at approximately 2.49% — more than twice the national average. On a $400,000 home, NJ property taxes would be approximately $9,960/year ($830/month). Other high-tax states include Illinois (2.23%), New Hampshire (2.09%), Vermont (1.90%), and Wisconsin (1.85%). These states often rely more heavily on property taxes to fund local schools and services. Consult a licensed real estate agent for current local rates in the specific area you're considering.
Hawaii has the lowest effective property tax rate in the nation at approximately 0.29%, though home prices are extremely high. Other low property tax states include Alabama (0.41%), Nevada (0.60%), Arizona (0.63%), and Utah (0.63%). Many southern states also have below-average property tax rates. However, low property tax states often have higher sales taxes or income taxes — consider the overall state and local tax burden when evaluating.
The assessment ratio is the percentage of a property's market value that is subject to taxation. While many states assess at 100% of market value, others use lower ratios. For example, Arizona assesses residential properties at just 10% of market value. On a $300,000 Arizona home assessed at 10%, the taxable "assessed value" is $30,000, and taxes are calculated on that $30,000. When comparing property tax rates across states, always look at effective rates (as a percentage of market value) for valid comparisons.
A homestead exemption reduces the taxable assessed value of your primary residence, lowering your property tax bill. Florida offers up to $50,000 exemption. Texas offers a $100,000 homestead exemption for general taxes. Senior citizens, veterans, and disabled persons may qualify for additional exemptions. You typically must apply with your county assessor — some states have deadlines to apply for the following tax year. Check with your local assessor's office or a licensed real estate agent for details in your area.
Property taxes are calculated as: Annual Tax = (Market Value × Assessment Ratio − Exemptions) × Effective Tax Rate. For example: $500,000 home in New Jersey (100% assessment, $0 exemption, 2.49% rate) = $500,000 × 1.0 × 2.49% = $12,450/year. Compare to Hawaii: $500,000 × 1.0 × 0.29% = $1,450/year. The difference in annual taxes between these two states for the same home value is over $11,000/year — a major factor in affordability and retirement planning.
Disclaimer: Property tax estimates use state effective average rates and are for educational purposes only. Actual property taxes are set by local taxing authorities (county, city, school district) and vary significantly within states. Assessment ratios, exemptions, and mill rates change annually. For your actual property tax liability, contact your county assessor or property tax authority. Consult a licensed real estate agent and financial advisor before making major real estate decisions.