Property taxes are the budget line that shocks most buyers. To keep things clean and fair, we use each state’s effective property tax rate for owner-occupied homes (taxes paid ÷ home value), which is built from the American Community Survey’s DP04 housing data. Local bills still vary by school districts, reassessments, exemptions, and caps. The figures below are simple estimates for a $400,000 home so you can sanity-check a listing before you get attached.
1. New Jersey
- Average effective property tax rate: 2.23%
- Estimated annual tax on a $400,000 home: $8,920
New Jersey leans hard on property taxes to fund schools and local services, so rates bite across most towns. Bills can shift with reassessments, school bonds, and special districts, which is why two blocks can feel like two different markets. Some households qualify for the state’s ANCHOR benefit, which helps but isn’t automatic. If you’re moving for a “deal,” check the levy stack and the last revaluation date before you bid. Renovations can also feed mid-cycle value changes, so ask how your town handles improvements.
2. Illinois
- Average effective property tax rate: 2.07%
- Estimated annual tax on a $400,000 home: $8,280
Cook County gets the headlines, but collar and downstate counties can be just as tough. Pension costs, school funding, and frequent reassessments keep pressure on rates. Special districts (parks, libraries, transit) add layers. Seniors may qualify for homestead and “freeze” relief, but each has rules and income tests. If you’re modeling costs, include a likely post-sale reassessment so your first full bill doesn’t shock you.
3. Connecticut
- Average effective property tax rate: 1.92%
- Estimated annual tax on a $400,000 home: $7,680
High services meet high values. Mill rates vary by town, and waterfront revaluations move fast. Some relief is income-tested and on tight filing windows. If your town just revalued, ask how phase-ins work. For remodels, get in writing how improvements will be picked up by the assessor so you can plan next year’s bill.
4. Vermont
- Average effective property tax rate: 1.75%
- Estimated annual tax on a $400,000 home: $7,000
Education funding and homestead rules drive most of the math. Year-round homes, second homes, and camps can be treated differently, and a single reappraisal can reset bills for everyone in one year. Income-based adjustments help many owners who file on time. Views and lake access lift assessed value, and those premiums show up every year.
5. New Hampshire
- Average effective property tax rate: 1.71%
- Estimated annual tax on a $400,000 home: $6,840
Towns rely on property taxes, and a uniform slice for schools appears as the statewide education line defined in the statewide education property tax. Move one street and you may cross into a different district with a very different total. Credits for seniors and veterans exist, but they’re local and deadline-driven. New construction and big remodels can pull you into fresh comps fast.
6. New York
- Average effective property tax rate: 1.60%
- Estimated annual tax on a $400,000 home: $6,400
Downstate pairs big values with steady levies; upstate flips it with lower prices but higher effective rates. STAR and common senior exemptions reduce taxable value for many households. Verify whether exemptions transfer at closing or require a re-file. Major remodels can feed mid-cycle value changes in some counties.
7. Texas
- Average effective property tax rate: 1.58%
- Estimated annual tax on a $400,000 home: $6,320
No state income tax shifts more weight to property. Overlapping jurisdictions—school, county, city, MUD—stack totals, while homestead status limits damage via a 10% cap on appraised value increases. File as soon as you own and occupy. Protest dates come fast. Beyond taxes, MUD fees, insurance, and HOA dues change the monthly number just as much as the levy.
8. Wisconsin
- Average effective property tax rate: 1.51%
- Estimated annual tax on a $400,000 home: $6,040
Local services rely on the levy, and school referendums can nudge rates higher. Low- to moderate-income owners can offset part of the hit with the state’s Homestead Credit. Equalization ratios differ by town, which is why two places next to each other can feel very different. Ask how often your city reassesses and how appeals work.
9. Nebraska
- Average effective property tax rate: 1.50%
- Estimated annual tax on a $400,000 home: $6,000
Schools and counties lean on the property tax base. Rural owners feel it on land and homes; city owners pay for denser services. Levy breakdowns matter more than list price. In storm belts, roof age and hail history push insurance costs, which changes the total monthly payment. New builds and big additions can land on the roll sooner than you think.
10. Iowa
- Average effective property tax rate: 1.43%
- Estimated annual tax on a $400,000 home: $5,720
City, county, and school levies stack quickly, and recent reassessments pushed values up. Rollback factors decide how much of that shows up on your bill. File homestead and any military exemptions early so your taxable base starts in the right place. When two towns look similar, pick the one with the steadier levy history.
11. Ohio
- Average effective property tax rate: 1.36%
- Estimated annual tax on a $400,000 home: $5,440
Voter-approved school levies behave differently than simple millage math, which is why effective rates can bite even when assessments look tame. The state’s plain-English property tax guide is helpful before you appeal. Senior and disability relief helps once you’re eligible. Price bond issues and special districts before you fall for a house.
12. Pennsylvania
- Average effective property tax rate: 1.35%
- Estimated annual tax on a $400,000 home: $5,400
County and school pieces dominate. Many owners cut the school portion through the homestead/farmstead exclusion, which reduces taxable value before the school tax is computed. Reassessments are uneven by county, and post-sale appeals are common where values jumped. Learn your county’s relief rules early; a missed window can cost a year of savings.
13. Rhode Island
- Average effective property tax rate: 1.32%
- Estimated annual tax on a $400,000 home: $5,280
Small state, big differences by city. Some places revalue more often; others move in lumps, which creates bill whiplash. Posted rates may apply to full or fractional value depending on the town. Coastal markets adjust fast when prices move, so water views carry a yearly cost.
14. Kansas
- Average effective property tax rate: 1.30%
- Estimated annual tax on a $400,000 home: $5,200
School and county levies do most of the work, and assessment gains follow sale prices. Special districts change totals more than lot size, which is why two similar homes can carry very different bills. Rural acreage adds miles to any appeal or inspection, which is a real cost in both time and fuel.
15. Michigan
- Average effective property tax rate: 1.28%
- Estimated annual tax on a $400,000 home: $5,120
Two numbers matter: assessed and taxable. After a sale, taxable value is subject to uncapping, which is why that first full bill surprises many buyers who modeled costs off the seller’s cap. Ask your assessor for an estimate of post-purchase taxable value before you sign. Good comps make appeals worth your time.
16. Alaska
- Average effective property tax rate: 1.14%
- Estimated annual tax on a $400,000 home: $4,560
Borough and city choices set the tone, so rates are local. High-service areas carry heavier levies; remote towns trade lower bills for longer drives. Senior and disabled-veteran exemptions can be generous if you file on time. In winter, access and reappraisal logistics also affect timing and costs.
17. Massachusetts
- Average effective property tax rate: 1.11%
- Estimated annual tax on a $400,000 home: $4,440
Values are high, and cities depend on the levy. Classification and the commercial share change how much a neighborhood carries. Appeal windows are short each fall. If you plan to commute, a smaller place near transit can beat a larger home with steep parking and longer drives.
18. Maine
- Average effective property tax rate: 1.10%
- Estimated annual tax on a $400,000 home: $4,400
Local control means the town line matters. Revaluations can rewrite waterfront bills quickly; inland shifts are steadier. Seniors should check deferrals and resident exemptions early. When you compare towns, make sure you’re not mixing full-value places with fractional-value places.
19. South Dakota
- Average effective property tax rate: 1.09%
- Estimated annual tax on a $400,000 home: $4,360
With no state income tax, more weight lands on property. Agricultural valuations ripple into city bills, too. Assessment cycles and caps are local, and hail history can move insurance as much as taxes move mortgages. Pick a town with steady levies and short drives; long winter commutes add cash and stress.
20. Minnesota
- Average effective property tax rate: 1.04%
- Estimated annual tax on a $400,000 home: $4,160
Truth-in-Taxation notices preview hikes, but the pinch arrives with the final levy. Homestead benefits and senior deferrals exist if you qualify. School boundaries can change your total more than square footage. When two suburbs look equal, choose the one with the calmer levy trend.
21. Maryland
- Average effective property tax rate: 1.00%
- Estimated annual tax on a $400,000 home: $4,000
County rates and special districts drive the bill, but taxable value growth is limited by a statewide homestead assessment cap (locals often set even lower caps). Turnover shifts load to recent buyers, so model post-sale value, not the seller’s capped base. Some cities add a municipal line on top of the county bill. If you’re eligible, income-based credits can help.
Methodology
We ranked states by the average effective property tax rate on owner-occupied housing (real estate taxes paid ÷ home value) using the Tax Foundation’s 2025 state-by-state effective rate table, which compiles 2023 American Community Survey data. The underlying housing and tax inputs are defined in the Census Bureau’s ACS DP04 profile. For each state, the “$400,000 home” line is a straight calculation: statewide effective rate × $400,000. These are statewide baselines; actual bills vary with assessment ratios, exemptions and credits, caps, special districts, and reassessment timing.
Where a rule materially changes what owners pay, we clarified the rule with primary sources. For example, New Jersey’s ANCHOR property-tax benefit, New Hampshire’s school statewide education line, Texas’s homestead 10% cap on appraised value increases, Wisconsin’s Homestead Credit, Pennsylvania’s school-tax homestead/farmstead exclusion, Michigan’s taxable value uncapping rule, and Maryland’s homestead assessment cap.
