Property taxes are one of the most significant ongoing costs of homeownership, varying dramatically by state.
How Property Taxes Work
Taxes are calculated by multiplying assessed value by local tax rate. Most jurisdictions reassess periodically. When values increase, tax bills go up even if rates stay same.
Highest and Lowest States
New Jersey has highest rates at approximately 2.2%. Illinois, New Hampshire, Connecticut, and Vermont exceed 1.8%. Hawaii has lowest at 0.3%. Alabama, Louisiana, Wyoming, and Colorado are below 0.6%.
Tax Relief Programs
Many states offer homestead exemptions, senior citizen exemptions, and veteran programs. Check with local tax assessor for available programs.