Property Taxes By State 2020

Most adults in the United States strive to own their own homes and vehicles. However, this ownership comes at a price. Not only will you have an auto loan or mortgage, insurance, and repair costs, but you also have to pay property taxes.

Property taxes are paid to your state and contribute to the state’s revenue. This revenue is used for a variety of purposes, including building schools, repairing roads, and building other critical infrastructure. Property taxes are paid on an annual basis and the amount you pay varies by state.

According to the U.S. Census Bureau, the average household pays over $2,200 per year for their homes. Across the 27 states with property taxes on vehicles, the average paid is about $440 annually.

For this article, we are going to look at the median property tax rate of each state. This is calculated by dividing the median tax payment of each state by the median home price. Based on this data, the state with the highest median tax rate is New Jersey. As of 2019, the median tax rate in this state is 1.89%.

New Hampshire falls just a little behind with a media property tax rate of 1.86%. Coming in third place is Texas with a rate of 1.81%.

Many of the states in the U.S. have a median property tax rate of at least 1%. These states are: Wisconsin, Nebraska, Illinois, Connecticut, Michigan, Vermont, North Dakota, Ohio, Pennsylvania, Rhode Island, Iowa, Kansas, South Dakota, New York, Maine, Minnesota, Massachusetts, and Alaska.

Now, let’s take a look at the states with the lowest median property tax rates. Louisiana has the lowest at 0.18%. Hawaii has the second-lowest rate at 0.26%. Alabama come in third was a median rate of 0.33%.

While some states have very low property taxes – and in some states, no property taxes at all on vehicles – one thing to remember is that the state makes up this revenue in other ways. For example, a state with very low property tax rates may have higher sales tax or personal income tax in order for the state to generate necessary revenue.

Property Taxes By State 2020

State Median Property Tax 2020 Pop.
New Jersey1.89%8,936,574
New Hampshire1.86%1,371,246
Texas1.81%29,472,295
Wisconsin1.76%5,851,754
Nebraska1.76%1,952,570
Illinois1.73%12,659,682
Connecticut1.63%3,563,077
Michigan1.62%10,045,029
Vermont1.59%628,061
North Dakota1.42%761,723
Ohio1.36%11,747,694
Rhode Island1.35%1,056,161
Pennsylvania1.35%12,820,878
Kansas1.29%2,910,357
Iowa1.29%3,179,849
South Dakota1.28%903,027
New York1.23%19,440,469
Maine1.09%1,345,790
Minnesota1.05%5,700,671
Massachusetts1.04%6,976,597
Alaska1.04%734,002
Florida0.97%21,992,985
Washington0.92%7,797,095
Missouri0.91%6,169,270
Oregon0.87%4,301,089
Maryland0.87%6,083,116
Indiana0.85%6,745,354
Nevada0.84%3,139,658
Montana0.83%1,086,759
Georgia0.83%10,736,059
North Carolina0.78%10,611,862
Virginia0.74%8,626,207
Oklahoma0.74%3,954,821
California0.74%39,937,489
Kentucky0.72%4,499,692
Arizona0.72%7,378,494
Idaho0.69%1,826,156
Tennessee0.68%6,897,576
Utah0.60%3,282,115
Colorado0.60%5,845,526
Wyoming0.58%567,025
New Mexico0.55%2,096,640
Mississippi0.52%2,989,260
Arkansas0.52%3,038,999
South Carolina0.50%5,210,095
West Virginia0.49%1,778,070
District of Columbia0.46%720,687
Delaware0.43%982,895
Alabama0.33%4,908,621
Hawaii0.26%1,412,687
Louisiana0.18%4,645,184