US States With the Highest & Lowest Property Taxes

Property taxes are probably the most loathed type of tax that homeowners are stuck with. Even renters indirectly feel the wrath of property taxes, as these pesky expenses tend to affect rent prices.

Certain states property taxes costs are far lower than others in the country. Keep in mind, however, that just because property taxes in these states might be the lowest in the country, that doesn’t mean their income or goods and services taxes follow suit in some cases.

Nevertheless, the following states have the lowest property taxes across the US based on a percentage of home value.

1. Hawaii

The property tax percentage in this glorious state is the lowest in the country, clocking in at 0.28 percent of home value. With the average home value in Hawaii estimated to be $500,000, the average property tax paid on homes in this state averages out to $1,400. But before you pack your bags and relocate, keep in mind that the personal taxes in Hawaii rank pretty high, and the cost of living in many parts of the state are higher than the average in the country.

2. Alabama

Folks living in Alabama pay 0.43 percent of their home value in property taxes. With an average home value of $122,700 in the state, that works out to an average property tax payment of $527.

Alabama used to have top spot in 2012 in terms of the lowest property taxes in the US. The state’s general sales tax is approximately 2 percentage points under the national average of 5.95 percent. When factoring in all taxes payable, Alabama ranks the 10th lowest in the US.

3. Louisiana

The Pelican State is third on this list, with a property tax percentage of 0.51 percent of home values. With median home prices averaging an already-low $140,300, residents pay an affordable average of $715.

Not only do residents of Louisiana have the benefit of paying some of the lowest property taxes in the country, they can also reap the rewards of the state’s “Restoration Tax Abatement.” This program offers landowners a tax break based on the dollar value of the home renovations they make. The goal of this tax break is to encourage revitalization of properties and infrastructure, both on the residential and commercial front.

4. Delaware

The state of Delaware is in the middle of a continued budget crunch, which makes it probable that property tax rates will one day increase from its current low of 0.55 percent of home value in an effort tap into an available revenue source. The average home value in the state is $226,200, costing residents $1,240 on average for annual property taxes.

5. District of Columbia and South Carolina

Believe it or not, but both have the same property tax rate of 0.57 percent of home values. Even though D.C. is heavily urbanized compared to South Carolina, they still come in at a tie. The median home value in the District of Columbia is $470,500, and $139,200 in South Carolina. Therefore, residents in D.C. are paying quite a bit more, despite the same tax rate.

On the flip side, here are the top 5 states in the US with the highest property taxes.

1. New Jersey

The Garden State ranks number one for the highest property taxes across the nation with a 1.89 percent of home value. The median home value in New Jersey is $348,300, making the average annual property taxes a whopping $6,582. Many of the state’s communities rank pretty high up there, with the prize going to Tavistock Borough with average property taxes an astounding $25,346.

2. New Hampshire

The taxes as a percentage of home value in New Hampshire equate to 1.86. Residents pay an average of $4,644 in property taxes on the state’s median home value of $249,700. While New Hampshire may have the second highest property taxes in the US, it doesn’t have income or sales tax, which is why it relies a lot on property taxes.

3. Texas

Even though the average home value in Texas is only $125,800, it’s property tax percentage based on home value is the third highest in the country, at 1.81 percent. One county in Texas is particularly expensive – Fort Bend County ranks 16th the most expensive county in the US.

4. Wisconsin

Similar to Texas, the Badger State’s median home value is quite low at $170,800 compared to other states in the country. But its taxes as a percentage of home values ranks 4th at 1.76 percent. In fact, Wisconsin has the highest property taxes in the Midwest.

5. Nebraska

Following suit with #3 and #4 on this list for highest property taxes, Nebraska has a relatively high property tax rate (1.70 percent) despite its low median home value of $123,300. Recently, farmers in Nebraska have requested that the state legislature lower property taxes because they’ve become so much of a burden.

While property tax rates vary greatly from one state to the next, it can vary significantly by county as well. In states or counties where the property tax rates are much lower, it just might offer enough incentive for homeowners to relocate to lessen the tax burden.