If you want to move to another state or simply buy some property, you need to be aware of the varying rate of property taxes by state. Each state is different, and for that reason, we have written up the guide below. Let’s jump right into it.
The Basics of U.S. Property Taxes by State
Also known as “Ad Valorem tax,” property taxes represent the sum of money you pay for the property you own. This refers not only to private individuals but to legal entities as well, such as companies and corporations.
They are represented as rates, a percentage set by both local authorities like school boards and cities and actual U.S. states. However, states do have the final say in the matter, and they have established parameters in order to keep things uniform across the board.
While the actual state tax rates are relatively simple to understand, reaching a specific sum can be difficult.
You need to consider the value of your property before you buy it and then take into account your state’s tax rate as well as local municipal costs and rates.
Also, keep in mind that property taxes change on an annual basis, though some areas reassess this rate every couple of years. The best way to be certain about all of your other relevant costs and expenses is to contact your county or city assessor's office.
Property Tax Rate by State: An Overview
The table below provides a clear overview of every state’s property tax rate. They also show just how much these rates can vary from location to location. Furthermore, the table provides an overview of the median value of a property in specific states and how the tax rate can be applied to them.
| State | Average Property Tax Rate by State | Median Home Value by State | Annual Tax on Median Value of Property by State |
|---|---|---|---|
| Alabama | 0.41% | $209,000 | $857 |
| Alaska | 1.19% | $345,741 | $4,114 |
| Arizona | 0.66% | $451,099 | $2,977 |
| Arkansas | 0.62% | $180,282 | $1,118 |
| California | 0.76% | $792,787 | $6,025 |
| Colorado | 0.51% | $593,502 | $3,027 |
| Connecticut | 2.14% | $383,934 | $8,216 |
| Delaware | 0.57% | $358,080 | $2,041 |
| D.C. | 0.56% | $811,792 | $4,546 |
| Florida | 0.89% | $423,929 | $3,773 |
| Georgia | 0.92% | $322,949 | $2,971 |
| Hawaii | 0.28% | $1,055,488 | $2,955 |
| Idaho | 0.69% | $468,858 | $3,235 |
| Illinois | 2.27% | $270,237 | $6,134 |
| Indiana | 0.85% | $223,194 | $1,897 |
| Iowa | 1.57% | $194,962 | $3,061 |
| Kansas | 1.41% | $209,278 | $2,951 |
| Kentucky | 0.86% | $200,423 | $1,724 |
| Louisiana | 0.55% | $217,296 | $1,195 |
| Maine | 1.36% | $362,346 | $4,928 |
| Maryland | 1.09% | $416,491 | $4,540 |
| Massachusetts | 1.23% | $607,274 | $7,469 |
| Michigan | 1.54% | $234,217 | $3,607 |
| Minnesota | 1.12% | $337,891 | $3,784 |
| Mississippi | 0.81% | $168,039 | $1,361 |
| Missouri | 0.97% | $232,983 | $2,260 |
| Montana | 0.84% | $457,014 | $3,839 |
| Nebraska | 1.73% | $240,540 | $4,161 |
| Nevada | 0.60% | $477,693 | $2,866 |
| New Hampshire | 2.18% | $455,286 | $9,925 |
| New Jersey | 2.49% | $484,393 | $12,061 |
| New Mexico | 0.80% | $299,214 | $2,394 |
| New York | 1.72% | $379,307 | $6,524 |
| North Carolina | 0.84% | $326,383 | $2,742 |
| North Dakota | 0.98% | $284,545 | $2,789 |
| Ohio | 1.56% | $215,306 | $3,359 |
| Oklahoma | 0.90% | $184,901 | $1,664 |
| Oregon | 0.97% | $525,191 | $5,094 |
| Pennsylvania | 1.58% | $269,306 | $4,255 |
| Rhode Island | 1.63% | $446,155 | $7,272 |
| South Carolina | 0.57% | $299,604 | $1,708 |
| South Dakota | 1.31% | $296,908 | $3,889 |
| Tennessee | 0.71% | $304,074 | $2,159 |
| Texas | 1.80% | $316,247 | $5,692 |
| Utah | 0.63% | $595,922 | $3,754 |
| Vermont | 1.90% | $367,290 | $6,979 |
| Virginia | 0.82% | $382,825 | $3,139 |
| Washington | 0.98% | $628,988 | $6,164 |
| West Virginia | 0.58% | $140,027 | $812 |
| Wisconsin | 1.858% | $267,991 | $4,979 |
| Wyoming | 0.61% | $324,707 | $1,981 |
Exploring Property Tax Rates
You might have noticed just how much property taxes by state vary.
Just as an example, you might pay the least amount of money ($812) on your property in West Virginia due to the low tax rate and low median property value. On the other hand, New Jersey is among the states with the highest property tax rate and the highest property values, leading to the highest median sum ($12,061) you might pay out on your property.
Keep in mind that if you don't pay your property tax rate, your local taxing authority can then put a tax lien on your property or on other financial assets. While not a complete seizure of your assets, it is a legal claim the government has over you. If you, for example, decide to sell said assets and properties, the government can take some or all of the funds you may receive.
While these tax rates are unpopular, as all taxes are, state property taxes are necessary for the funding of public schools, bridges, roads, and essentially everything that helps a country function. They make up an important part of a working society and country.
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