Saving & Spending Taxes

10 Worst States in America for Property Taxes

Find out where property ownership feels more like a financial trap than a dream.

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Updated Sept. 24, 2024
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Skyrocketing home prices are bad enough, but if you really want to get ahead financially, think twice about moving to a state with high property taxes.

Yes, those taxes can provide high-quality amenities such as good roads, schools, and fire and police departments. But they can also deprive you of the money you need for a stress-free retirement.

Before searching for your next home, check out the states you may want to avoid due to their high property taxes.

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10. Rhode Island

Mcdonojj/Adobe Castle Hill Lighthouse Seascape

Property tax rate: 1.39%

Skyrocketing home costs in Rhode Island have led to a potential increase in property taxes for many homeowners since taxes are based on the value of those properties.

But there is some good news: Due to the surge in housing costs, some communities in the state have decided to hold off on their annual re-evaluations of property values to see how prices change in the next year.

9. Nebraska

Don Lewis/Adobe Chimney Rock Nebraska

Property tax rate: 1.54%

Omaha has higher property tax rates than many large cities in the U.S. Taxes on agricultural lands in the state have also surged, and many farmers complain that they struggle to pay the taxes.

8. Wisconsin

bmargaret/Adobe gravel cow lane with a dairy barn

Property tax rate: 1.59%

Milwaukee's effective property tax rate is 2.53%, and the state is known for using property taxes heavily to pay for services.

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7. Texas

ccestep8/Adobe horses grazing under tree

Property tax rate: 1.63%

Texas is one of nine states with no state income tax. However, that fact also means Texans may rely more heavily on property taxes than other places to cover community needs.

Texas cities such as El Paso, Fort Worth, San Antonio, and Arlington are known for their high property taxes.

6. New York

sborisov/Adobe panoramic view on Manhattan at night

Property tax rate: 1.64%

New York City's approach to taxing homes is legendarily complicated, and many citizens there are crying out for reform. But even in other parts of New York, property taxes raise the ire of many homeowners.

5. Vermont

alpegor/Adobe farm and pastureland in a colorful autumnal landscape

Property tax rate: 1.78%

In 2024, residents of Burlington, Vermont, were shocked by how much their property taxes increased following property reappraisals there. Those who own single-family homes saw their tax obligation spike by 11%.

4. New Hampshire

spiritofamerica/Adobe Crawford Depot along the scenic train ride to Mount Washington

Property tax rate: 1.89%

New Hampshire may rely more heavily on property taxes than other taxes, which could contribute to its high rate. The state has no income or sales tax, instead relying on property taxes to cover costs.

3. Connecticut

Gregory/Adobe lighthouse and oyster boat at sunrise

Property tax rate: 2.00%

Connecticut is known for being among the most expensive states to live in. The cost of housing, utilities, and consumer goods are high

The state also has a high property tax rate. But although things may cost more, many residents have a higher-than-average income, which may offset the taxes somewhat.

2. Illinois

Iuliia Sokolovska/Adobe Chicago skyline aerial drone view from above

Property tax rate: 2.11%

Illinois has several smaller metro areas known for high property taxes, including Rockford (3.12%), Peoria (2.69%), and Joliet (2.63%).

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1. New Jersey

Jin/Adobe Asbury Park New Jersey

Property tax rate: 2.33%

New Jersey has higher property values than many other states, which can lead to high property tax bills.

Tax rates themselves are also high. Elizabeth and Paterson, both near New York City, have some of the highest property tax rates.

Bottom line

wichayada/Adobe woman calculating budget before signing real estate project contract

There are plenty of great places to live, even in states with high property taxes. For some people, moving to a high-tax state is worthwhile.

But all things being equal, it’s better to find ways to avoid wasting money than spend it on taxes.

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