Property Taxes by State: Where You'll Pay More and Save

Property Taxes by State: Where You'll Pay More and Where You'll Save

Buying a home is about more than just finding your perfect neighborhood; it's also understanding the costs involved, particularly those pesky property taxes. If you're looking to settle down in a new state or city, knowing where you might be hitting the jackpot—or the taxman—can make all the difference.

Property taxes can vary widely depending on where you live, and these differences can significantly impact your overall costs. Here's what you need to know about property taxes across the United States:

#### 1. High-Tax States

Some states have a reputation for high property tax rates. New Jersey, Illinois, New York, and Massachusetts are often top of mind when it comes to hefty tax bills. In these areas, expect to see higher property values, which in turn drive up your annual tax payments.

For example, in New Jersey, the statewide average is around $2,400 per year for a median home value, according to recent data. Illinois isn't far behind with an average of about $1,850 annually.

#### 2. Low-Tax States

On the flip side, there are states where property taxes might be more manageable. Florida, Texas, and Alaska have notably lower tax rates due to their unique state laws. For instance, Texas is known for its flat property tax rate, and homeowners in many cities pay less than $1,000 annually on average.

Alaska offers another interesting case: while it has one of the highest per capita incomes in the country, the state's constitutional requirement that homesteads be exempt from property taxes means that many Alaskan homeowners don't see a dime on their annual bills.

#### 3. Midrange States

A number of states fall somewhere in between high and low tax states. California, for example, has a mix of cities with varying tax burdens, but the statewide average hovers around $5,000 per year. Meanwhile, Oregon's property taxes are generally lower than those of its neighboring states, averaging about $2,300 annually.

1. **Research Before You Move:** Knowing where you'll be paying your property taxes can help you budget and plan better. Use online resources like the National Association of Tax Officers (NATO) or state tax websites to get accurate figures for different areas.

2. **Consider Your Budget:** High property taxes can significantly affect your monthly expenses. Make sure these costs fit into your overall financial plan, especially if you're buying a home that's near the higher end of its value range.

3. **Explore Property Tax Incentives:** Some localities offer incentives or abatements to encourage homeownership. Keep an eye out for these programs as they can help offset some of those tax bills.

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Photo by Jakub Zerdzicki • Published June 24, 2026