Top 25 States With the Highest Property Tax

Property taxes play a significant role in overall home affordability. States with the highest property tax rates can add substantial costs to homeownership. In this article, we’ll explore the top 25 states with the highest property taxes, providing insights on what makes these states particularly costly.

Highest Property Tax States in the U.S.

1. New Jersey

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New Jersey leads the nation with an effective property tax rate of 2.47%. The state's high tax rate is driven by substantial local government and school funding needs.

2. Illinois

Illinois follows closely with a rate of 2.30%. The state's financial struggles and pension liabilities contribute to the high property taxes.

3. New Hampshire

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New Hampshire has a rate of 2.20%, largely due to the lack of a broad-based income tax, making property taxes a primary revenue source.

4. Connecticut

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Connecticut's effective property tax rate is 2.11%, influenced by the state's high-income areas and substantial public service funding.

5. Wisconsin

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With a rate of 1.91%, Wisconsin’s property taxes are used to support its extensive public school system and local services.

6. Texas

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Texas has a rate of 1.81%. The absence of a state income tax shifts the revenue burden heavily onto property taxes.

7. Vermont

Vermont’s property tax rate stands at 1.71%. The state’s commitment to education funding through property taxes is a major factor.

8. Nebraska

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Nebraska, with a rate of 1.70%, relies on property taxes for local school districts and government funding.

9. New York

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New York’s rate is 1.68%, driven by high property values and extensive public services.

10. Rhode Island

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At 1.63%, Rhode Island's property taxes are a significant source of revenue for the state's municipalities.

11. Ohio

Ohio has a rate of 1.62%, with property taxes funding schools and local governments across the state.

12. Iowa

Iowa’s property tax rate is 1.57%, supporting local services and education.

13. Pennsylvania

Pennsylvania’s rate of 1.56% is used primarily for funding public schools and local services.

14. Michigan

Michigan’s property tax rate is 1.55%, with funds directed toward local governments and educational institutions.

15. Kansas

Kansas, with a rate of 1.51%, uses property taxes to fund local government and public education.

16. South Dakota

South Dakota’s property tax rate stands at 1.44%, with a significant portion going to local governments and schools.

17. Massachusetts

Massachusetts has a rate of 1.40%, driven by high property values and extensive public services.

18. Minnesota

Minnesota’s property tax rate is 1.32%, funding local services and educational systems.

19. North Dakota

North Dakota’s rate of 1.31% supports its local and county governments, as well as school districts.

20. Maryland

Maryland’s effective property tax rate is 1.24%, contributing to local services and education.

21. Washington

Washington State has a rate of 1.22%, with property taxes funding local governments and school districts.

22. Oregon

Oregon’s property tax rate stands at 1.21%, supporting local services and public education.

23. Missouri

Missouri, with a rate of 1.20%, relies on property taxes for local government and educational funding.

24. Maine

Maine’s property tax rate is 1.16%, used primarily for funding local services and schools.

25. Alaska

Alaska rounds out the list with a rate of 1.14%, supporting local government services and educational systems

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Understanding which states have the highest property taxes can help potential homeowners make informed decisions. The states listed above have varying reasons for their high property tax rates, but common factors include funding for public education, local government services, and the absence of other major revenue sources such as state income taxes. Being aware of these factors is crucial for anyone planning to buy property in these states.