Property Tax Disparities Across U.S. States: Effective Rates, Assessment Practices, and Burden Distribution in 2026
Abstract
Property taxes represent the single largest source of local government revenue in the United States. This study provides a comprehensive 2026 analysis of effective property tax rates across all 50 U.S. states and the District of Columbia.
Key Findings
Rates vary more than tenfold
Effective property tax rates range from 0.28% in Hawaii to 2.49% in New Jersey.
Property taxes are regressive
Regressive in 47 of 50 states. Lowest-income decile pays 4.4% vs 1.8% for highest.
Assessment caps reduce regressivity
States with assessment caps (CA, FL, MA) achieve approximate proportionality.
Methodology
Effective rates = annual tax / market value, using median-valued homes from 2024 ACS.
Data & Findings
The table below shows the ten highest and ten lowest effective property tax states for 2026.
| Rank | State | Effective Rate | Median Home Value | Annual Tax |
|---|---|---|---|---|
| 1 | New Jersey | 2.49% | $450,000 | $11,205 |
| 2 | Illinois | 2.27% | $250,000 | $5,675 |
| 3 | New Hampshire | 2.18% | $315,000 | $6,867 |
| 4 | Connecticut | 2.14% | $290,000 | $6,206 |
| 5 | Wisconsin | 1.85% | $245,000 | $4,533 |
| 6 | Texas | 1.69% | $290,000 | $4,901 |
| 7 | Nebraska | 1.61% | $195,000 | $3,140 |
| 8 | Vermont | 1.59% | $250,000 | $3,975 |
| 9 | Pennsylvania | 1.56% | $220,000 | $3,432 |
| 10 | Ohio | 1.53% | $175,000 | $2,678 |
| — Middle rankings omitted for brevity — | ||||
| 41 | Tennessee | 0.71% | $230,000 | $1,633 |
| 42 | Delaware | 0.69% | $320,000 | $2,208 |
| 43 | Utah | 0.65% | $415,000 | $2,698 |
| 44 | Nevada | 0.59% | $370,000 | $2,183 |
| 45 | South Carolina | 0.56% | $200,000 | $1,120 |
| 46 | Colorado | 0.51% | $435,000 | $2,219 |
| 47 | West Virginia | 0.57% | $125,000 | $713 |
| 48 | DC | 0.56% | $580,000 | $3,248 |
| 49 | Alabama | 0.41% | $170,000 | $697 |
| 50 | Hawaii | 0.28% | $665,000 | $1,862 |
Discussion & Implications
The substantial variation reflects deep differences in state and local fiscal policy choices. Assessment caps (CA, FL, MA), homestead exemptions (LA, TX), and alternative revenue sources (AK, WY) all reduce effective rates.
References
- George, H. (1879). Progress and Poverty.
- Tax Foundation. (2026). Effective Property Tax Rates by State, 2026.
- Lincoln Institute of Land Policy. (2025). Significant Features of the Property Tax.
- U.S. Census Bureau. (2024). American Community Survey.