Housing News

These States Have the Lowest and Highest Property Taxes

February 23, 2026

Many homebuyers don’t realize just how big of a part property taxes can play in their monthly mortgage bills.

How much you pay can vary wildly based on where you live. Homeowners in Alabama paid the least in property taxes, spending an average $788 a year, according to a recent report from personal finance site WalletHub.

That was a fraction of the $9,590 homeowners paid in New Jersey, which had the highest property taxes in the nation.

The typical household spends about $3,119 on property taxes a year, according to WalletHub. This money generally goes toward funding local schools and paying for local services, such as police and fire departments, parks, and road upkeep.

“There is more to buying a [home] than negotiating the best price and getting the best interest rate,” Karen Kunz, associate professor emerita at West Virginia University, said in a statement. “Property taxes make up the largest portion of your escrow account, enough to make a long-term impact on the actual cost of your [home.]”

Residents of blue states generally pay about 27% more in property taxes than those living in red states, according to WalletHub. Property taxes in blue states average $3,594 compared to red states, where the taxes average $2,830 a year.

Property taxes are generally determined based on a percentage of the assessed value of a home. Taxes can change over time if home values rise, the local government needs additional funding, or homeowners qualify for age-related and other exemptions.

Homeowners may also be able to grieve their taxes if they believe the costs are too high. This is when they protest the amount and show proof on why the taxes should be reduced.

“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,” Kun 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. The generally vary, sometimes dramatically, from state to state and from community to community.”

To come up with its findings, WalletHub used U.S. Census Bureau data to get property tax rates and 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.