Property Tax by State 2026 — Effective Rates & Median Bills
Property tax is the largest single state and local tax for many homeowners, often exceeding state income tax. We compiled effective property tax rates and median annual property tax bills for all 50 states in 2026, with county-level context for the most populous areas.
Methodology: Effective Rate vs Nominal Rate
Property tax is notoriously difficult to compare across states because each state assesses property differently. Some states assess at full market value, others at a percentage of market value, and others use complex classification systems. To make apples-to-apples comparisons, we use effective property tax rate: the median annual property tax paid divided by the median home value, expressed as a percentage. This captures what a typical homeowner actually pays in property tax as a share of their home's value. Median home values and median property tax payments come from the U.S. Census Bureau's American Community Survey 5-year estimates (latest available, 2020-2024). We also report median annual property tax bills in dollars, which combine the effective rate with the median home value.
Top 10 Highest Property Tax States in 2026
New Jersey has the highest property taxes in the nation, with an effective rate of approximately 2.21% and a median annual bill of $9,500. Illinois ranks second at 2.08% effective rate ($5,200 median bill), driven by Cook County (Chicago). Connecticut ranks third at 2.00% ($6,200 median bill). New Hampshire, Vermont, Pennsylvania, Texas, Wisconsin, Nebraska, and Ohio round out the top 10. Notably, Texas appears in the top 10 despite having no state income tax — the state compensates with above-average property taxes, particularly in suburban Dallas, Houston, and Austin. The OBBBA $40,400 SALT cap increase (up from $10,000) provides meaningful federal deduction relief for itemizers in these high-property-tax states.
Top 10 Lowest Property Tax States in 2026
Hawaii has the lowest property taxes in the nation, with an effective rate of approximately 0.28% and a median annual bill of $2,100. The low rate is supported by the state's tourism revenue and a homestead exemption that significantly reduces assessed value for owner-occupants. Alabama ranks second at 0.41% ($900 median bill), followed by Colorado, Louisiana, the District of Columbia, Delaware, South Carolina, West Virginia, Wyoming, and Arkansas. Several of these states (Louisiana, Alabama, South Carolina) offer generous homestead exemptions that reduce the taxable value of owner-occupied homes. The low effective rates in Colorado and Wyoming are supported by mineral and energy extraction revenue.
How OBBBA Affects Property Taxpayers
The OBBBA SALT cap increase from $10,000 to $40,400 (with a phaseout for high earners) is one of the most impactful changes for property taxpayers in 2026. For an itemizing homeowner in New Jersey with a $9,500 property tax bill plus $8,000 in state income tax, the old $10,000 cap meant they could only deduct $10,000 of the $17,500 total — losing $7,500 of deductions. Under OBBBA, they can deduct the full $17,500, saving approximately $1,650 in federal tax (at the 22% marginal rate on the additional $8,000 of deductible SALT). Single filers with MAGI above $500,000 and married filers above $1,000,000 face a phaseout that reduces the cap back to $10,000 over a $200,000 range. Use our OBBBA tax calculator to see your exact savings.
County-Level Variation Within States
Statewide effective rates hide significant within-state variation. In Illinois, Cook County (Chicago) has effective rates above 2.5%, while suburban Collar counties are closer to 2.0%. In Texas, school district property taxes vary by county and can swing the total bill by 30% or more. In New York, Long Island (Nassau and Suffolk counties) has some of the highest property tax bills in the country — many over $13,000 annually — while upstate counties are closer to the national median. Always check your specific county and school district when budgeting for property tax. The Tax Foundation publishes county-level property tax data in its annual report.
Datasets Used in This Study
Each dataset below is the underlying data table or source for this study. All datasets are licensed under Creative Commons Attribution 4.0 (CC BY 4.0) and are free to reuse with attribution to TheTaxCalc.
2026 Effective Property Tax Rates by State
Median annual property tax paid divided by median home value, expressed as a percentage, for all 50 states plus D.C.
Creator: TheTaxCalc, sourced from U.S. Census Bureau ACS 5-year · License: CC BY 4.0
2026 Median Annual Property Tax Bills by State
Median annual property tax payment in current dollars for owner-occupied housing units, for all 50 states plus D.C.
Creator: TheTaxCalc, sourced from U.S. Census Bureau ACS 5-year · License: CC BY 4.0
2026 County-Level Property Tax Rates — Top 50 Counties
Effective property tax rate and median bill for the 50 most populous U.S. counties, with state context.
Creator: TheTaxCalc, sourced from Tax Foundation county-level data · License: CC BY 4.0
Frequently Asked Questions
Which state has the highest property taxes in 2026?
New Jersey has the highest property taxes in the nation in 2026, with an effective rate of approximately 2.21% and a median annual bill of $9,500. Illinois, Connecticut, New Hampshire, and Vermont round out the top 5. Several of these states (New Jersey, Illinois, Connecticut, New Hampshire) have had the highest property taxes in the nation for decades, driven by a combination of high local government spending, school funding formulas, and limited alternative revenue sources.
Which state has the lowest property taxes in 2026?
Hawaii has the lowest property taxes in the nation in 2026, with an effective rate of approximately 0.28% and a median annual bill of $2,100. The low rate is supported by state tourism revenue and a generous homestead exemption that significantly reduces assessed value for owner-occupants. Alabama, Colorado, Louisiana, and the District of Columbia round out the lowest 5.
How is property tax calculated?
Property tax is calculated as the assessed value of your home multiplied by the local millage rate (or tax rate), then divided by 1,000. Assessed value may or may not equal market value depending on your state — some states assess at full market value, others at a percentage, and others use classification systems. Effective property tax rate (which we report) is the median annual property tax paid divided by the median home value, giving a percentage that captures what a typical homeowner actually pays as a share of their home's value.
How does the OBBBA SALT cap affect property tax deduction?
The OBBBA SALT cap increase from $10,000 to $40,400 lets itemizers deduct up to $40,400 in combined state income tax, property tax, and sales tax (up from $10,000 under TCJA). For a homeowner in New Jersey with a $9,500 property tax bill, the increased cap means they can deduct the full amount (subject to total SALT and MAGI phaseout). Single filers with MAGI above $500,000 and married filers above $1,000,000 face a phaseout that reduces the cap back to $10,000.
Why are Texas property taxes so high if there is no state income tax?
Texas has no state individual income tax, so the state funds government services primarily through property tax and sales tax. Texas ranks in the top 10 nationally for effective property tax rate (around 1.7%), with suburban Dallas, Houston, and Austin metros often exceeding 2.2%. The trade-off: a Texas family earning $150,000 pays no state income tax but pays roughly $2,500 more per year in property tax on a $400,000 home than they would in California. The net effect is generally positive for high earners.
Can I deduct property tax if I take the standard deduction?
No. Property tax is deductible only if you itemize deductions on Schedule A. With the 2026 OBBBA standard deduction of $16,100 (single) or $32,200 (MFJ), most taxpayers now take the standard deduction and cannot separately deduct property tax. However, the OBBBA SALT cap increase from $10,000 to $40,400 makes itemizing more attractive for homeowners in high-property-tax states, especially those with mortgage interest and charitable contributions to itemize.
Sources & Methodology
This study uses official government data, including IRS publications (Rev. Proc. 2025-25, Pub. 15-T, Pub. 972), Social Security Administration data, U.S. Census Bureau American Community Survey, the FCC Broadband Deployment Report, and each state’s Department of Revenue. Tax law changes from the One Big Beautiful Bill Act (P.L. 119-1) are incorporated throughout. For full calculation details, see our methodology page.
Last updated: January 15, 2026. This study is reviewed annually and updated whenever material new data is published by the IRS or other official sources.