20 States With the Highest Property Taxes
Property taxes are an important way for communities to pay for things like schools, roads, and infrastructure. However, these taxes can be very different from one state to the next, which can affect homeowners in different areas.
- Tricia Quitales
- 6 min read
Property taxes are one of the biggest costs for homeowners, and they are very different in different parts of the US. People who live in the states with the highest property taxes usually have to pay more in taxes because their tax rates or property values are higher than average. Some states also depend on property taxes to pay for local services, especially when they don’t have any other tax sources. This article lists the 20 states with the highest property taxes and talks about their rates, how they affect people who live there, and the reasons behind the high tax burden.
1. New Jersey
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The state of New Jersey always has the highest property taxes in the country. Homeowners in New Jersey often have to pay a lot for their taxes, with an average effective rate of about 2.42%. The overall tax rates are higher because the state gets most of its local money from property taxes, especially for schools.
2. Illinois
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Illinois has one of the highest property tax rates in the US, at about 2.30 percent per year. Property taxes are a big part of how the state pays for local services like schools. This puts much financial stress on homeowners, especially in areas where homes are worth more.
3. New Hampshire
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With an average effective rate of 2.18%, New Hampshire is known for having high property tax rates. The state compensates for not having an income tax by charging high property taxes that pay for local schools and city services. Because property taxes are so important, New Hampshire is one of the most expensive states for homeowners.
4. Connecticut
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Connecticut’s average property tax rate is about 2.14 percent, making it one of the highest rates in the country. Connecticut homeowners have higher-than-average tax bills because their homes are worth a lot. Property taxes are a big part of the state’s tax system because they pay for local governments.
5. Texas
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Texas is known for not having a state income tax. The state’s property tax rate is about 1.81%. Because of this, property taxes are one of the main ways local schools and services get money. Texas homeowners often have to pay high property taxes, especially in cities that are growing.
6. Michigan
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The average property tax rate in Michigan is about 1.54%. Property taxes in the state pay for local schools, public safety, and other services. Because of this, people who live there have to pay a lot of taxes, especially in places where homes are worth more.
7. Ohio
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Ohio has one of the highest property tax rates in the Midwest, at 1.57%. Property taxes pay for Ohio’s school districts and other important services. Ohio homeowners are especially affected by higher property tax bills in cities.
8. Nebraska
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Nebraska’s property tax rate is about 1.73% on average, and a big chunk of that goes to paying for public schools. Because the state doesn’t get any other money from taxes, homeowners, especially those in rural areas, have to pay higher taxes. Nebraska has been working to change its property tax system, even though the rates are high.
9. Wisconsin
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Wisconsin has one of the highest property tax burdens in the country, with an average effective property tax rate of 1.68%. Property taxes are how the state pays for schools and other local services. This puts a lot of pressure on homeowners, especially those who live in cities and suburbs. Residents of Wisconsin are still arguing about the state’s property tax system.
10. Pennsylvania
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The average property tax rate in Pennsylvania is 1.45%. Homeowners must pay a lot of money because the state relies on property taxes to fund local schools. Because homes are worth more in some places, especially cities, people who live there have to pay even higher taxes.
11. Iowa
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The property tax rate in Iowa is 1.53%, which helps pay for local schools. Homeowners in Iowa have to pay high property taxes, especially in places where homes are worth more. However, Iowa also helps low-income residents with their taxes in some ways.
12. Rhode Island
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Rhode Island’s average property tax rate is 1.63%. Although it is a smaller state, property taxes pay for many of its local services. Homeowners get big tax bills, especially in high-demand areas like Providence.
13. Indiana
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The average property tax rate in Indiana is about 1.05%, but taxes are higher than average in some places because they need more money. The state has been working to keep the property tax system fair, but some districts’ homeowners still have to pay a lot. Property taxes in Indiana are very high because of how much money is spent on schools.
14. Minnesota
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Minnesota has an average property tax rate of 1.29%, one of the region’s highest rates. Property taxes help pay for local services like schools and public safety, which are paid for by the state. These taxes affect homeowners, especially those who live in the suburbs, where the value of their homes goes up.
15. Maine
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Property taxes make it about 1.35% more expensive to live in Maine than in most other states. Property taxes are how the state pays for important services like schools. People living in Maine, especially along the coast, often have to pay high property taxes because their homes are valuable.
16. Vermont
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Vermont’s average property tax rate is about 1.90 percent. Property taxes are the main way the state pays for schools. People in Vermont, especially those in rural areas, often have to pay a lot of taxes. Property tax rates in the state are always among the highest in the country.
17. Montana
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The state’s average property tax rate is 1.07%, but some counties have higher rates. Property taxes pay for local services like schools and public safety. Montana homeowners have big tax bills, especially in areas with many expensive homes.
18. Kansas
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The property tax rate in Kansas is about 1.36%, but it varies from county to county. Local governments get their money from property taxes, and education has one of the largest allocations. Kansas homeowners are affected by rising property values because they cause taxes to go up.
19. North Dakota
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The average property tax rate in North Dakota is about 1.33%. Property taxes paid by people in the state pay for many services, like schools and local governments. North Dakota homeowners have tax bills that change based on the local real estate market.
20. Oregon
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Oregon’s property tax rate is 1.03%, which is on the lower end of the range. However, homeowners still have to pay more because the state relies on property taxes for local funding. Property values in some places, especially in cities like Portland, increase tax bills. The state’s progressive tax policies have different effects on homeowners whose homes are worth different amounts of money.