Depending on where you live, property taxes can be a small inconvenience or a huge financial burden.
The average U.S. household pays $3,119 per year in property taxes on their home, according to the U.S. Census Bureau, and residents in the 26 states that levy vehicle property taxes pay an additional $499 annually.
So which states place the loftiest property tax burden on their residents? To find out, online financial advisory site WalletHub examined real estate and vehicle property taxes across all 50 states and the District of Columbia for its 2026 Property Taxes by State report.
“Some states charge no property taxes at all, while others charge an arm and a leg. Americans who are considering moving and want to maximize the amount of money they take home should take into account property tax rates, in addition to other financial factors like the overall cost of living, when deciding on a city,” WalletHub Analyst Chip Lupo said in a statement.
In order to determine the states with the highest and lowest property taxes, WalletHub said it compared the 50 states and the District of Columbia by using U.S. Census Bureau data to determine real estate property tax rates and applying assumptions based on national auto sales data to determine vehicle property tax rates.
For real estate property tax rates, WalletHub said it divided the “median real estate tax payment” by the “median home price” in each state. It then used the resulting rates to obtain the dollar amount paid as real estate tax on a house worth $332,700, the median value for a home in the U.S. as of 2024 according to the Census Bureau.
For vehicle property tax rates, WalletHub said it examined data for cities and counties making up at least 50% of a given state’s population and extrapolated this to the state level using weighted averages based on population size. For each state, it assumed all residents own the same vehicle: a Toyota Camry LE four-door sedan—2025’s highest-selling car—valued at $29,100, as of January 2026.
WalletHub notes that Georgia formerly imposed a vehicle property tax but replaced it in 2013 with a one-time tax imposed on a vehicle’s fair market value.
Key findings from the report include:
- Hawaii has the lowest real estate property tax, which is 7.9 times lower than in New Jersey, the state with the highest.
- Twenty-six states levy some form of vehicle property tax. Of those states, Louisiana has the lowest, which is 39.9 times lower than in Virginia, the state with the highest.
- Blue states have 27.02 percent higher real estate property taxes, averaging $3,594, than red states, averaging $2,830.
The current reliance on property taxes by many state and local governments is excessive and unsustainable, said Mitchell Franklin, Ph.D., CPA, a professor of accounting at Le Moyne College in Syracuse, NY.
“Local boards often mismanage budgets and rely too heavily on property assessments that are frequently inaccurate or inappropriate. Over-taxation risks destabilizing housing markets and eroding community wealth,” he said in a statement. “Rather than increasing property taxes or shifting the burden to other assets, governments should prioritize efficiency, streamline operations, and reduce costs. Fiscal discipline and accountability must replace the reflexive tendency to raise taxes.”
The following is WalletHub’s ranking of real estate property tax rates by state (highest to lowest):
| Rank (1=Lowest) | State | Effective Real-Estate Tax Rate | Annual Taxes on $332.7K Home* | State Median Home Value | Annual Taxes on Home Priced at State Median Value |
|---|---|---|---|---|---|
| 51 | New Jersey | 2.11% | $7,022 | $454,400 | $9,590 |
| 50 | Illinois | 2.01% | $6,694 | $263,300 | $5,298 |
| 49 | Connecticut | 1.81% | $6,024 | $366,900 | $6,643 |
| 48 | New Hampshire | 1.66% | $5,511 | $402,500 | $6,667 |
| 47 | Vermont | 1.59% | $5,295 | $316,600 | $5,039 |
| 46 | New York | 1.55% | $5,167 | $423,800 | $6,582 |
| 44 | Texas | 1.49% | $4,961 | $283,800 | $4,232 |
| 44 | Nebraska | 1.49% | $4,949 | $238,600 | $3,549 |
| 43 | Wisconsin | 1.42% | $4,734 | $266,500 | $3,792 |
| 42 | Iowa | 1.39% | $4,634 | $208,000 | $2,897 |
| 41 | Ohio | 1.31% | $4,371 | $214,800 | $2,822 |
| 40 | Pennsylvania | 1.30% | $4,328 | $254,500 | $3,311 |
| 39 | Kansas | 1.29% | $4,286 | $217,200 | $2,798 |
| 38 | Michigan | 1.25% | $4,172 | $231,600 | $2,904 |
| 37 | Rhode Island | 1.21% | $4,033 | $404,200 | $4,900 |
| 36 | Alaska | 1.11% | $3,678 | $352,900 | $3,901 |
| 35 | Massachusetts | 1.07% | $3,547 | $562,100 | $5,992 |
| 34 | South Dakota | 1.06% | $3,521 | $257,400 | $2,724 |
| 32 | Minnesota | 1.02% | $3,392 | $329,300 | $3,357 |
| 32 | Maine | 1.02% | $3,406 | $296,600 | $3,036 |
| 31 | North Dakota | 0.99% | $3,286 | $249,900 | $2,468 |
| 30 | Maryland | 0.97% | $3,243 | $419,900 | $4,093 |
| 29 | Missouri | 0.85% | $2,814 | $230,300 | $1,948 |
| 27 | Oregon | 0.81% | $2,700 | $477,600 | $3,876 |
| 27 | Washington | 0.81% | $2,685 | $564,600 | $4,556 |
| 26 | Oklahoma | 0.80% | $2,663 | $199,800 | $1,599 |
| 25 | Georgia | 0.77% | $2,568 | $303,300 | $2,341 |
| 24 | Florida | 0.76% | $2,530 | $359,000 | $2,730 |
| 23 | Kentucky | 0.75% | $2,498 | $205,600 | $1,544 |
| 22 | Indiana | 0.74% | $2,461 | $218,200 | $1,614 |
| 21 | Virginia | 0.73% | $2,419 | $383,700 | $2,790 |
| 19 | Montana | 0.72% | $2,384 | $375,800 | $2,693 |
| 19 | Mississippi | 0.72% | $2,381 | $169,800 | $1,215 |
| 17 | New Mexico | 0.70% | $2,321 | $248,100 | $1,731 |
| 17 | California | 0.70% | $2,320 | $734,700 | $5,124 |
| 16 | North Carolina | 0.66% | $2,183 | $288,900 | $1,896 |
| 15 | District of Columbia | 0.58% | $1,946 | $737,100 | $4,312 |
| 14 | Wyoming | 0.57% | $1,898 | $309,700 | $1,767 |
| 12 | Louisiana | 0.55% | $1,813 | $216,500 | $1,180 |
| 12 | Arkansas | 0.55% | $1,840 | $188,000 | $1,040 |
| 11 | West Virginia | 0.53% | $1,770 | $162,600 | $865 |
| 10 | Utah | 0.52% | $1,717 | $489,400 | $2,525 |
| 8 | Delaware | 0.50% | $1,671 | $352,000 | $1,768 |
| 8 | Tennessee | 0.50% | $1,673 | $286,700 | $1,442 |
| 7 | Idaho | 0.49% | $1,620 | $418,600 | $2,038 |
| 4 | Arizona | 0.48% | $1,585 | $394,500 | $1,879 |
| 4 | Colorado | 0.48% | $1,605 | $539,400 | $2,602 |
| 4 | South Carolina | 0.48% | $1,607 | $259,000 | $1,251 |
| 3 | Nevada | 0.47% | $1,549 | $435,400 | $2,027 |
| 2 | Alabama | 0.38% | $1,249 | $209,900 | $788 |
| 1 | Hawaii | 0.27% | $888 | $839,100 | $2,239 |
How the states rank by vehicle property tax rates can be found here.
“Individuals and families should carefully consider property taxes when deciding where to move. Property taxes represent a recurring cost that can significantly affect financial planning, savings capacity, and long-term affordability,” Franklin said. “Even if a home’s purchase price appears manageable, high property taxes can dramatically increase the overall cost of ownership and strain household budgets. Responsible housing decisions must therefore account not only for mortgage payments but also for the ongoing tax burden. Too many overlook this when making decisions on housing.”
Photo illustration credit: erhui1979/iStock
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
