Editor's Note: This story originally appeared on Construction Coverage.
Property taxes have become an increasing burden as property values continue to outpace inflation.
Rising home prices have pushed local government assessments — and in turn, property tax bills — markedly higher in many areas. Higher property taxes can be daunting for homeowners, but they are a boon for state governments that rely heavily on property tax revenue.
Property taxes are a cornerstone of state and local government finances, providing the largest share of tax revenue to fund essential services such as education, public safety, and infrastructure.
Unlike other tax types, property taxes offer a relatively stable revenue stream, as they are less directly affected by economic fluctuations.
The following states rank highest in property tax rates, based on the analysis of data from the U.S. Census Bureau by researchers at Construction Coverage. Learn more about the methodology at the end.
15. Rhode Island
- Effective property tax rate for owner-occupied homes: 1.052%
- Median property taxes paid for owner-occupied homes: $4,644
- Median owner-occupied home value: $411,800
- Median owner-occupied household income: $111,520
14. Michigan
- Effective property tax rate for owner-occupied homes: 1.148%
- Median property taxes paid for owner-occupied homes: $2,845
- Median owner-occupied home value: $236,100
- Median owner-occupied household income: $82,155
13. Pennsylvania
- Effective property tax rate for owner-occupied homes: 1.19%
- Median property taxes paid for owner-occupied homes: $3,151
- Median owner-occupied home value: $259,900
- Median owner-occupied household income: $90,396
12. Kansas
- Effective property tax rate for owner-occupied homes: 1.194%
- Median property taxes paid for owner-occupied homes: $2,746
- Median owner-occupied home value: $219,800
- Median owner-occupied household income: $86,867
11. Iowa
- Effective property tax rate for owner-occupied homes: 1.235%
- Median property taxes paid for owner-occupied homes: $2,827
- Median owner-occupied home value: $213,300
- Median owner-occupied household income: $86,520
10. Wisconsin
- Effective property tax rate for owner-occupied homes: 1.254%
- Median property taxes paid for owner-occupied homes: $3,582
- Median owner-occupied home value: $272,500
- Median owner-occupied household income: $92,350
9. New York
- Effective property tax rate for owner-occupied homes: 1.263%
- Median property taxes paid for owner-occupied homes: $6,325
- Median owner-occupied home value: $420,200
- Median owner-occupied household income: $108,513
8. Ohio
- Effective property tax rate for owner-occupied homes: 1.306%
- Median property taxes paid for owner-occupied homes: $2,754
- Median owner-occupied home value: $220,200
- Median owner-occupied household income: $86,288
7. Texas
- Effective property tax rate for owner-occupied homes: 1.356%
- Median property taxes paid for owner-occupied homes: $4,274
- Median owner-occupied home value: $296,900
- Median owner-occupied household income: $96,818
6. New Hampshire
- Effective property tax rate for owner-occupied homes: 1.413%
- Median property taxes paid for owner-occupied homes: $6,285
- Median owner-occupied home value: $415,400
- Median owner-occupied household income: $114,853
5. Vermont
- Effective property tax rate for owner-occupied homes: 1.417%
- Median property taxes paid for owner-occupied homes: $4,851
- Median owner-occupied home value: $332,000
- Median owner-occupied household income: $96,425
4. Nebraska
- Effective property tax rate for owner-occupied homes: 1.435%
- Median property taxes paid for owner-occupied homes: $3,523
- Median owner-occupied home value: $245,200
- Median owner-occupied household income: $94,687
3. Connecticut
- Effective property tax rate for owner-occupied homes: 1.485%
- Median property taxes paid for owner-occupied homes: $6,388
- Median owner-occupied home value: $367,800
- Median owner-occupied household income: $119,486
2. New Jersey
- Effective property tax rate for owner-occupied homes: 1.773%
- Median property taxes paid for owner-occupied homes: $9,163
- Median owner-occupied home value: $461,000
- Median owner-occupied household income: $127,398
1. Illinois
- Effective property tax rate for owner-occupied homes: 1.825%
- Median property taxes paid for owner-occupied homes: $5,089
- Median owner-occupied home value: $263,300
- Median owner-occupied household income: $98,752
Methodology
The data used in this analysis is from the U.S. Census Bureau’s 2023 American Community Survey.
To determine the locations with the highest property taxes, researchers at Construction Coverage calculated the effective property tax rate for owner-occupied homes by dividing the aggregate annual real estate taxes paid by the aggregate value of housing units.
In the event of a tie, the location with the greater median property taxes paid for owner-occupied homes was ranked higher.
Additionally, due to top-coding limitations in the survey data, median home values over $2 million were presented as >$2 million, median household incomes over $250,000 were presented as >$250,000, and median property taxes paid over $10,000 were replaced with the average property taxes paid.
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