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10 Worst States in America for Property Taxes

Find out where property ownership feels more like a financial trap than a dream.

By Chris Lewis, CEPF , Edited by Becca Borawski Jenkins

Updated Sept. 21, 2026

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Skyrocketing home prices are bad enough, but if you really want to get ahead financially, think twice about moving to a state with high property taxes.

Yes, those taxes can provide high-quality amenities such as good roads, schools, and fire and police departments. However, they can also deprive you of the money you need to lower your stress in retirement.

Before searching for your next home, check out the states you may want to avoid due to their high property taxes.

Editor's note: The effective tax rate represents the typical share of a home's value that homeowners pay in property taxes, expressed as a percentage, according to the U.S. Census Bureau's most recent data.

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10. Iowa

Effective tax rate: 1.39%

Iowa's property taxes are relatively high, with local governments and schools relying on property tax revenue. Soaring property values following the COVID-19 pandemic have contributed to the overall tax burden.

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9. Wisconsin

Effective tax rate: 1.42%

Wisconsin's property taxes are among the highest in the nation, with local governments and schools depending on property tax revenue. The state's reliance on property taxes for funding contributes to the elevated rates.

8. Nebraska

Effective tax rate: 1.49%

Nebraskans are well aware they pay some of the highest property taxes in the country. The state has given hefty tax credits over the last few years, including credits that directly reduce property taxes.

Omaha has higher property tax rates than many large cities in the U.S. Taxes on agricultural land in the state have also surged, and many farmers report struggling to pay them.

7. Texas

Effective tax rate: 1.49%

Texas is one of nine states with no state income tax. However, that also means Texans may rely more heavily on property taxes than residents in other states to cover community needs.

Texas cities such as El Paso, Fort Worth, San Antonio, and Arlington are known for their high property taxes.

6. New York

Effective tax rate: 1.55%

New York's high property tax burden varies by location, with local governments and school districts relying on property taxes to fund services. New York City is exempt from the state's property tax levy cap.

5. Vermont

Effective tax rate: 1.59%

Vermont's real estate taxes are on the higher end, with local governments and schools relying heavily on property tax revenue. Property taxes are a major source of funding for the state's Education Fund.

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4. New Hampshire

Effective tax rate: 1.66%

New Hampshire may rely more heavily on property taxes than on other taxes, which could contribute to its high rate. The state has no individual income tax or general sales tax, instead relying heavily on property taxes to cover costs.

3. Connecticut

Effective tax rate: 1.81%

Connecticut is known for being among the most expensive states to live in. The cost of housing, utilities, and consumer goods is high.

The state has experienced a significant increase in property taxes, driven by rising home values and reliance on local property taxes to fund essential services. Although costs may be higher, many residents have higher-than-average incomes, which may help offset the tax burden.

2. Illinois

Effective tax rate: 2.01%

Illinois has one of the highest property tax rates. High local tax levies fund schools and municipalities, especially in Cook County, which includes Chicago.

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1. New Jersey

Effective tax rate: 2.11%

New Jersey has higher property values than many other states, which can lead to high property tax bills. Tax rates themselves are also high. Elizabeth and Paterson, both near New York City, have some of the highest property tax rates.

Bottom line

There are plenty of great places to live, even in states with high property taxes. For some people, moving to a high-tax state is worthwhile. But all things being equal, it's better to find ways to avoid wasting money than to spend it on taxes.

This article is for informational purposes only and should not be considered investment advice.

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