Property taxes are a cornerstone of local government finance across the United States, representing a significant portion of both state and local tax collections. In fiscal year 2022, for instance, property taxes accounted for a substantial 27.4 percent of total state and local tax revenue, making them the largest single source. These funds are critical for supporting essential community services such as K-12 education, local infrastructure like roads, and vital public safety departments including police and fire services, directly benefiting property owners and residents.
However, navigating the landscape of property taxes can be complex, as these taxes are almost invariably levied at the local level. This decentralized approach means that “millages (rates) are not directly comparable with each other across states,” making comprehensive state-level comparisons particularly challenging. To provide clarity and practical insight for homeowners and those considering relocation, our analysis delves into the effective property tax rates across 14 states, utilizing county-level data from 2023.
This in-depth examination focuses exclusively on identifying states and their counties that demonstrate favorable, low effective property tax rates. It is important to note that while the broader topic includes “High School Ratings,” the context provided for this analysis is limited to property tax data. Therefore, our discussion will center solely on the financial aspect of property ownership, guiding readers through the states that offer a lighter property tax burden based on the latest available data.
1. **Hawaii: A Haven for Exceptionally Low Property Taxes**Hawaii consistently stands out as a state offering some of the nation’s lowest effective property tax rates, a significant advantage for homeowners in this otherwise high-cost living environment. The data from 2023 clearly illustrates this, with all listed counties exhibiting remarkably low rates. This financial relief can make property ownership more attainable and appealing for residents across the islands, providing a welcome offset to other expenses.
Maui County, for example, reports an exceptionally low effective property tax rate of 0.1679 percent, based on a median housing value of $858,600 and median property taxes paid of $1,442. This figure positions it as one of the most favorable tax environments. Similarly, Kauai County also presents a very attractive rate of 0.2250 percent, with median housing valued at $817,900 and median taxes paid at $1,840.
Further reinforcing Hawaii’s status, Hawaii County shows an effective rate of 0.2862 percent, corresponding to a median housing value of $486,400 and median taxes of $1,392. Honolulu County, despite its urban density, maintains a low rate of 0.2843 percent, with a median housing value of $873,000 and median property taxes of $2,482. These consistent, low rates across diverse counties make Hawaii a top contender for those prioritizing minimal property tax obligations.
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2. **Alaska: Striking a Balance with Highly Variable, Yet Often Low, Property Tax Rates**Alaska presents a unique and diverse property tax landscape, characterized by significant variations in effective rates across its numerous census areas and boroughs. While some regions experience higher burdens, several areas offer remarkably low property taxes, making Alaska an intriguing option for those seeking tax efficiency in specific locales. This variability necessitates a closer look at the local data rather than relying on a generalized state average.
Among the standout areas for low property taxes in Alaska, the Copper River Census Area recorded an exceptionally low effective property tax rate of just 0.0807 percent. This rate is derived from a median housing value of $246,700 and median property taxes paid of $199, marking one of the lowest rates observed in the entire dataset. Another incredibly attractive option is the Northwest Arctic Borough, which registered an effective rate of 0.1225 percent, also with median property taxes of $199 on a median housing value of $162,500.
Other regions also contribute to Alaska’s appeal for low property taxes, albeit at slightly higher rates. The Skagway Municipality, for instance, exhibits an effective rate of 0.3423 percent with a median housing value of $430,000 and median taxes of $1,472. Hoonah-Angoon Census Area (0.4165 percent, $1,159 taxes on $278,300 median value) and Prince of Wales-Hyder Census Area (0.4702 percent, $1,043 taxes on $221,800 median value) further demonstrate areas where homeowners can benefit from relatively light tax burdens. While some urban centers like Anchorage have higher rates, the opportunity for low property taxes in many of Alaska’s diverse regions remains a notable draw.
3. **Alabama: A Landscape of Consistently Favorable Property Tax Rates**Alabama distinguishes itself as a state where low effective property tax rates are a widespread and consistent feature across many of its counties. This makes it an attractive destination for individuals and families aiming to minimize their annual property tax expenditures. The state’s approach to local financing, often favoring lower property tax reliance, contributes to this homeowner-friendly environment, providing predictable and manageable costs.
A significant number of Alabama counties report effective rates well below the national average, often falling within the 0.2 percent to 0.4 percent range. For example, Choctaw County stands out with an effective rate of 0.1780 percent on a median housing value of $111,800, where median property taxes paid amount to just $199. Bibb County also offers an appealing rate of 0.2044 percent, with median taxes of $271 on a $132,600 median home.
Other counties further exemplify Alabama’s favorable tax climate. Clay County records a 0.2253 percent effective rate, Covington County at 0.2512 percent, and Cullman County at 0.2532 percent, demonstrating broad accessibility to low tax burdens. Elmore County (0.2636 percent), Pike County (0.2705 percent), Coosa County (0.2710 percent), and Walker County (0.2723 percent) also fall into this desirable category, making Alabama a robust choice for those prioritizing low property taxes. Even in counties with slightly higher rates, such as Jefferson County (0.5958 percent) or Shelby County (0.4496 percent), these remain competitive when compared to high-tax jurisdictions elsewhere.
4. **Arkansas: Affordability Through Modest Property Tax Demands**Arkansas offers homeowners a generally favorable property tax environment, with many counties exhibiting rates that contribute significantly to overall affordability. This characteristic makes Arkansas an appealing state for those looking to stretch their housing budget further by benefiting from lower recurring property costs. The state’s commitment to providing manageable tax obligations is evident across various regions, ensuring a stable financial outlook for residents.
A substantial portion of Arkansas’s counties maintain effective property tax rates typically ranging between 0.4 percent and 0.6 percent. This broad consistency in moderate rates ensures that homeowners across the state can often find a relatively light tax burden. For instance, Montgomery County leads with a notably low effective rate of 0.3838 percent, where median property taxes paid are $522 on a median housing value of $136,000.
Other counties also underscore this trend of affordability. Newton County records a 0.4077 percent effective rate ($729 taxes on $178,800 median value), followed closely by Scott County at 0.4112 percent ($456 taxes on $110,900 median value). Polk County (0.4413 percent), Madison County (0.4449 percent), and Drew County (0.4476 percent) further illustrate areas where property tax rates are designed to be homeowner-friendly. The presence of counties like Dallas (0.4674 percent), Randolph (0.4395 percent), and Stone (0.3534 percent) solidifies Arkansas’s position as a state where property tax concerns are often considerably lower than in many other parts of the nation.
5. **Colorado: Diverse Landscapes and Distinctly Low Property Tax Rates**Colorado presents an attractive proposition for homeowners seeking low property tax burdens, with a remarkable number of its counties boasting effective rates well below the national average. This favorable tax climate is particularly evident across a diverse array of regions, from mountainous retreats to more populated areas, making the state a prime candidate for those prioritizing financial efficiency in their housing decisions. This widespread affordability makes Colorado a standout in the property tax discussion.
The state showcases numerous counties with effective property tax rates often ranging from 0.2 percent to 0.5 percent, offering significant relief to residents. Gilpin County, for example, registers an impressive effective rate of just 0.2296 percent, with median property taxes paid amounting to $1,177 on a median housing value of $512,600. Dolores County follows closely with a rate of 0.2406 percent, based on median taxes of $558 for a $231,900 median home.
Additional counties further highlight Colorado’s favorable tax position. Las Animas County (0.2443 percent), San Miguel County (0.2608 percent), La Plata County (0.2644 percent), and Ouray County (0.2767 percent) all demonstrate rates that are highly advantageous for property owners. Chaffee County (0.2780 percent), Gunnison County (0.2818 percent), Hinsdale County (0.2931 percent), San Juan County (0.2937 percent), Montezuma County (0.2970 percent), and Valley County (0.2966 percent) further solidify the state’s reputation for offering some of the lowest effective property tax rates in the nation, making it a desirable location for a wide range of homeowners.
6. **Idaho: Navigating Growth with Manageable Property Tax Obligations**Idaho offers a generally appealing environment for property owners, characterized by many counties maintaining effective property tax rates that are well within a manageable range. While the state experiences significant growth, the property tax landscape largely remains favorable, contributing to the overall affordability of living there. This balanced approach to taxation makes Idaho an attractive consideration for those seeking stability in their annual housing expenses.
Across Idaho, numerous counties report effective rates typically falling between 0.3 percent and 0.6 percent, indicating a broad consistency in reasonable tax burdens. Clark County stands out with one of the lowest rates in the state, at 0.2916 percent, with median property taxes of $592 on a median housing value of $203,000. Valley County also offers a highly competitive rate of 0.2966 percent, with median taxes of $1,778 for a median home valued at $599,500.
Other counties reinforce Idaho’s reputation for manageable property taxes. Custer County reports an effective rate of 0.3055 percent, while Blaine County (0.3861 percent), Boise County (0.3704 percent), Bonner County (0.3959 percent), and Boundary County (0.4164 percent) all exhibit rates that are favorable for homeowners. Camas County (0.4219 percent), Teton County (0.3465 percent), Idaho County (0.3422 percent), and Payette County (0.4355 percent) further underscore the state’s capacity to provide relatively low property tax burdens, positioning Idaho as a practical choice for budget-conscious residents.
7. **Indiana: A Heartland State with Commendable Property Tax Affordability**Indiana emerges as a notable state for its commendable property tax affordability, with a significant number of its counties showcasing effective rates that are highly attractive to homeowners. The state’s fiscal policies appear to prioritize keeping property tax burdens relatively low, which translates into tangible savings for residents. This focus on affordability makes Indiana a strong contender for those seeking reasonable and predictable annual housing costs.
Many Indiana counties report effective property tax rates typically ranging from 0.4 percent to 0.7 percent, demonstrating a consistent trend of manageable obligations. Clay County, for example, boasts one of the lowest rates at 0.4569 percent, with median property taxes of $589 on a median housing value of $128,900. Brown County also offers an appealing rate of 0.4705 percent, with median taxes of $1,141 for a median home valued at $242,500.
Further reinforcing Indiana’s position are counties like Jackson County (0.4722 percent), Putnam County (0.4752 percent), Morgan County (0.4798 percent), and Pulaski County (0.4799 percent), all reflecting rates that are highly favorable. Jasper County (0.4883 percent) and Parke County (0.4961 percent) add to this list of desirable locations, making Indiana a state where homeowners can expect relatively light property tax bills. While some areas like Lake County (0.9255 percent) and Marion County (0.9290 percent) show higher rates, the overall picture for Indiana remains one of considerable property tax affordability.
While the previous section highlighted states offering consistently low property tax burdens, the landscape of property taxation across the U.S. is notably diverse, presenting a spectrum of costs and considerations for homeowners. This second part of our comprehensive analysis delves into seven additional states—Arizona, Delaware, Florida, Georgia, California, Connecticut, and Illinois—which represent a more varied or often higher property tax environment. For residents and prospective buyers, understanding the nuances within these states is crucial, as local rates can significantly impact the overall cost of homeownership, necessitating a detailed, data-driven examination. Our objective remains to provide clear, actionable insights derived from 2023 county-level property tax data, helping you navigate these complex financial terrains.
8. **Arizona: Navigating Moderate to Manageable Property Tax Rates**Arizona presents a property tax environment that, while generally moderate when compared to some high-tax states, still showcases considerable variation across its counties. Homeowners here can find rates that are quite manageable, often falling within the 0.4 percent to 0.8 percent range, making property ownership relatively accessible without the extremely low rates seen in some of the top-tier states. This balanced approach to property taxation contributes to the state’s appeal for many residents.
For instance, Yavapai County exemplifies the state’s more favorable end of the spectrum, reporting an effective property tax rate of 0.4413 percent. This rate translates to median property taxes of $1,734 on a median housing value of $392,900, demonstrating a respectable balance between home value and tax burden. Similarly, Maricopa County, home to Phoenix, registers an effective rate of 0.4738 percent, with median taxes of $1,965 on a median housing value of $414,700, reflecting competitive costs in a major metropolitan area.
On the other hand, Pima County, which includes Tucson, experiences a slightly higher effective rate of 0.7835 percent, where median property taxes paid are $2,248 on a median housing value of $286,900. Apache County records one of the higher rates within the state’s dataset at 0.8380 percent, with median taxes of $574 on a median housing value of $68,500. These examples underscore the importance of investigating specific county data when evaluating property tax implications in Arizona.
9. **Delaware: A Compact State with Surprisingly Low to Moderate Property Tax Burdens**Delaware, despite its small geographical footprint, offers a property tax landscape that often surprises with its relatively low to moderate effective rates, providing a distinct advantage for homeowners. This favorable tax structure can be particularly attractive, positioning the state as an appealing option for those seeking a lighter financial load on their property. The variations observed between its few counties are noteworthy for potential residents.
Sus County stands out as an exceptionally attractive location within Delaware, boasting a remarkably low effective property tax rate of just 0.3314 percent. This translates to median property taxes of $1,171 on a median housing value of $353,300, making it highly competitive even against some of the lowest-tax states. This low rate provides significant financial relief for property owners, enhancing the county’s desirability.
Moving northward, Kent County exhibits a moderate effective rate of 0.4580 percent, with median property taxes paid amounting to $1,331 on a median housing value of $290,600. New Castle County, the state’s most populous, shows a higher but still reasonable effective rate of 0.7411 percent, with median taxes of $2,444 on a median housing value of $329,800. These figures demonstrate that while rates vary, Delaware generally maintains an appealing property tax profile.
10. **Florida: Balancing Sunshine with Varying Property Tax Liabilities**Florida, renowned for its sunny climate and vibrant communities, presents a property tax environment that can vary considerably across its numerous counties. While some areas offer relatively moderate rates, others see higher effective tax burdens, making a detailed understanding of local data essential for homeowners. This variability means that the “Sunshine State” can have a diverse financial impact on property owners, depending on their chosen locale.
Some regions within Florida offer more palatable property tax rates. Walton County, for instance, records an effective rate of 0.4540 percent, where median property taxes are $1,709 on a median housing value of $376,400. Okaloosa County also presents a relatively favorable rate of 0.5998 percent, with median taxes of $1,948 for a median home valued at $324,800. These areas can provide a more budget-friendly option for homeowners.
However, other parts of Florida experience significantly higher effective rates. Glades County, for example, registers an effective property tax rate of 1.0131 percent, with median taxes of $1,163 on a median housing value of $114,800. Hardee County follows closely with a rate of 1.0495 percent, and St. Lucie County reports a rate of 0.9460 percent. These higher rates, often seen in combination with varied median housing values, mean prospective buyers must carefully assess the local tax burden to avoid unexpected costs.
11. **Georgia: A Diverse Tax Landscape Ranging from Low to Substantial**Georgia offers a highly diverse property tax landscape, characterized by a broad spectrum of effective rates that can range from remarkably low to quite substantial across its many counties. This wide variability means that while some areas are highly attractive for their low tax burdens, others require careful consideration due to significantly higher property tax obligations. For homeowners, understanding these local distinctions is paramount to financial planning.
On the more favorable end, counties like Fannin and Towns stand out. Fannin County boasts an impressively low effective property tax rate of 0.3492 percent, with median taxes of $959 on a median housing value of $274,600. Towns County similarly offers a rate of 0.3652 percent, with median taxes of $1,139 on a median home valued at $311,900. These rates demonstrate that hidden gems of affordability can be found within the state.
Conversely, Georgia also includes counties with effective rates exceeding one percent, placing a heavier burden on property owners. Dougherty County, for instance, records a rate of 1.3932 percent, with median property taxes of $1,800 on a median housing value of $129,200. Clinch County shows an even higher rate of 1.3963 percent, while Stewart County reaches a substantial 1.7113 percent, with median taxes of $907 on a median home valued at $53,000. This stark contrast underscores the need for thorough research when considering property in Georgia.
12. **California: High Home Values and Variable Property Tax Realities**California is famously known for its high median housing values, yet its effective property tax rates often fall within a moderate range when compared to national averages, typically between 0.6 percent and 0.9 percent. However, the sheer magnitude of property values means that even these moderate rates can result in substantial annual tax bills. This combination creates a unique challenge for homeowners, where the actual dollar amount paid can be quite high despite a seemingly average effective rate.
Some of California’s less urbanized counties present the lowest effective rates. Trinity County, for example, reports an effective rate of 0.5386 percent, with median property taxes of $1,772 on a median housing value of $329,000. Del Norte County also offers a comparatively low rate of 0.5857 percent, with median taxes of $1,872 on a median home valued at $319,600. These areas might offer relative tax relief within the state.
Conversely, in more densely populated or highly valued areas, the property tax payments can be exceptionally high. Kern County, for instance, shows an effective rate of 0.9121 percent, with median taxes of $2,833 on a median housing value of $310,600. While San Mateo County has a lower effective rate of 0.6134 percent, its median housing value of $1,494,500 leads to median property taxes of $9,167. This highlights that for California homeowners, both the effective rate and the property’s market value are critical determinants of their tax burden.
13. **Connecticut: Navigating Some of the Nation’s Highest Property Tax Burdens**Connecticut stands out in the national property tax landscape for consistently imposing some of the highest effective property tax rates in the United States. For homeowners, this translates into significantly higher annual tax obligations, making property ownership in the state a substantial financial commitment. The data from 2023 clearly illustrates that rates across its planning regions are notably elevated, often exceeding 1.5 percent and frequently surpassing 2 percent.
For example, the Northeastern Connecticut Planning Region, while on the lower end for the state, still records a substantial effective property tax rate of 1.5428 percent. This corresponds to median property taxes of $4,340 on a median housing value of $281,300. Similarly, the Southeastern Connecticut Planning Region reports an effective rate of 1.7509 percent, with median taxes of $5,146 on a median home valued at $293,900. These figures underscore the considerable cost of property taxes even in the less expensive areas of the state.
The state’s more densely populated regions often exhibit even higher tax burdens. The Greater Bridgeport Planning Region, for instance, has an effective rate of 2.1537 percent, leading to median property taxes of $8,550 on a median housing value of $397,000. The Capitol Planning Region also reports a high effective rate of 2.1429 percent, with median taxes of $6,390 on a median housing value of $298,200. These elevated rates are a critical factor for anyone considering homeownership in Connecticut, emphasizing the significant financial outlay required.
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14. **Illinois: Confronting One of the Nation’s Most Demanding Property Tax Environments**Illinois is widely recognized for having one of the most challenging property tax environments in the nation, with many of its counties imposing effective rates that consistently rank among the highest. This translates into considerable financial pressure for homeowners, where annual property tax bills can be a significant portion of their overall housing expenses. The 2023 data reveals that effective rates frequently surpass 1.5 percent, with many well above 2 percent.
While the state generally faces high tax burdens, there are variations. Pulaski County, for example, presents an anomaly with a lower effective rate of 0.8247 percent, where median property taxes are $668 on a median housing value of $81,000. Hardin County also shows a relatively lower rate for Illinois at 1.1756 percent, with median taxes of $1,078 on a median housing value of $91,700. These exceptions offer a glimpse of slightly less strenuous tax conditions.
However, the majority of Illinois counties reflect a much higher tax reality. DuPage County records an effective rate of 2.0938 percent, resulting in median property taxes of $7,833 on a median housing value of $374,100. Lake County is even more demanding, with an effective rate of 2.6770 percent, leading to median taxes of $8,743 on a median housing value of $326,600. These figures vividly illustrate the substantial ongoing costs associated with property ownership in Illinois, making it imperative for potential buyers to factor these high taxes into their financial planning.
Understanding the diverse property tax landscapes across these 14 states is paramount for anyone navigating the complex decisions surrounding homeownership. From the exceptionally low rates in Hawaii and Alaska to the considerably higher burdens in states like Connecticut and Illinois, the financial implications vary dramatically. Our detailed, data-driven analysis of 2023 county-level property tax rates provides a vital resource, empowering prospective homeowners to make informed choices. By carefully assessing these financial factors alongside other considerations such as high school ratings – which, though not detailed here due to data constraints, remain a key aspect for many families – individuals can identify locations that align with both their budget and lifestyle goals, ensuring a more predictable and sustainable homeownership experience.
