Housing News

States With the Lowest and Highest Property Taxes in 2026

July 15, 2026

Property taxes can add hundreds of dollars to a homeowner’s monthly housing costs, and where you buy a home can make an enormous difference.

Alabama homeowners paid the lowest average property tax bill in the nation. They paid $788 a year, or about $66 a month. This is according to a recent report from WalletHub, a personal finance site.

New Jersey homeowners paid the most at $9,590 a year, equal to nearly $799 a month. The difference between the two states was more than $8,800 a year.

For homebuyers, comparing homes in different states, counties, or nearby towns, property taxes can affect what they can afford. Many homeowners pay property taxes through an escrow account. One-twelfth of the yearly bill is added to their monthly mortgage payment.

The typical U.S. household spends about $3,119 a year on property taxes, according to WalletHub. The money generally helps fund local schools and services, including police and fire departments, parks, and road maintenance.

“There is more to buying a [home] than negotiating the best price and getting the best interest rate,” said Karen Kunz, an associate professor emerita at West Virginia University, said in a statement. “Property taxes are the largest part of your escrow account. They can affect the long-term cost of your home.”

Property taxes are generally based on a home’s assessed value and the tax rates set by local governments.

Those costs can vary sharply from one location to another. A homebuyer who moves across a state line, or even to a nearby community, may face a different tax bill.

“It is really smart to look into the cost of property taxes (as well as utilities) for a home you are interested in purchasing before you close the deal,” Kunz said in a statement. “You can’t assume that rates and services in one community will be the same as those in the neighboring community. They generally vary, sometimes dramatically, from state to state and from community to community.”

Homeowners may also be able to grieve their taxes if they believe the costs are too high. They protest the amount and show proof of why they should reduce the taxes.

“It is really smart to look into the cost of property taxes (as well as utilities) for a home you are interested in purchasing before you close the deal,” said Kunz. “You can’t assume that rates and services in one community will be the same as those in the neighboring community. The generally vary, sometimes dramatically, from state to state and from community to community.”

To make its findings, WalletHub used U.S. Census Bureau data. It used this data to get property tax rates. It also got median home prices for each state and Washington, DC. Then WalletHub calculated how much the typical homeowner in each state paid in real estate property taxes.