Key Takeaways
- Many homeowners underestimate their property tax bill, with about two-thirds of homeowners saying it came in higher than expected in a 2025 survey.
- Property tax bills range dramatically by state, from West Virginia (a median of $818) to New Jersey (a median of $10,333).
- High home prices don’t always mean high property tax rates, as states like California and Hawaii have relatively low effective tax rates (0.70% and 0.32%) despite expensive housing.
- If you disagree with your property tax assessment, make a point to dispute it before it’s too late.
With property tax bills rising 27.4% between 2019 and 2024, it’s no surprise that about two-thirds of homeowners who budgeted for property taxes discovered their latest bills came in higher than expected.
The median annual property tax bill across the U.S. was $3,018 in 2024. However, what you pay varies significantly from state to state, from a median of $818 in West Virginia to a median of $10,333 in New Jersey.
Meanwhile, these state-level figures hide significant metro area differences. Florida homeowners in Tampa and Jacksonville have watched their monthly property tax bills soar nearly 60% since 2019, while cities like Indianapolis and Atlanta have seen even bigger increases at over 65%, according to data from Redfin.
Understanding what others in your state actually pay could help you choose where to live or budget better for the coming year.
Where Property Tax Bills Hit the Hardest
Your property tax bill is determined by two factors: your home’s assessed value and your state’s effective tax rate. But here’s the twist—the states with the highest home prices don’t always have the highest tax bills, and vice versa.
New Jersey homeowners face the nation’s steepest property taxes (a median of $10,333 per year), followed by New Hampshire (a median of $7,355 per year), Connecticut (a median of $6,774 per year), and Massachusetts (a median of $6,510 per year). These states combine relatively high effective tax rates with expensive housing markets, creating bigger bills for homeowners.
On the flip side, West Virginia (a median of $818 per year), Alabama (a median of $830 per year), Mississippi (a median of $1,089 per year), and Arkansas (a median of $1,159 per year) offer the lowest annual property tax bills in the country.
But low bills don’t always mean low rates. The median home in Hawaii costs $963,043—the most expensive in the nation—but the state’s low 0.32% effective tax rate keeps tax bills relatively manageable.
The outliers tell the most interesting story. Texas homeowners pay a median of $4,086 annually despite having one of the highest effective tax rates at 1.36%, while California homeowners pay $5,502 despite a comparatively modest 0.70% rate, an effect of that state’s sky-high home values.
Note
Across the U.S., property taxes comprise about 8% of a typical homebuyer’s housing bill.
What You Can Do About Your Tax Bill
While nearly half of American homeowners surveyed (48%) say their home’s assessed value isn’t accurate, four-fifths (78%) have never appealed their property tax bill, with over half (53%) of those who haven’t appealed not knowing they had a right to do so. Make it a point to do so if you disagree with the assessment.
To avoid getting blindsided by a property tax bill for the home you’re buying, real estate experts recommend reviewing the property’s past tax bills before buying, checking whether your town’s tax base is growing or shrinking, and knowing when the next reassessment is scheduled.
When you can, budget an extra 5% to 10% above your estimated tax bill to cushion against increases, since property taxes tend to rise alongside home values.