Owning a home is hard work—and it’s expensive. Between electric bills, maintenance costs, and property taxes, expenses can add up quickly. In some areas, homeowners’ property tax bills have been increasing due to rising home values and changes in local tax regulations.
All homeowners are responsible for paying property taxes, whether they have a mortgage or own their property outright. If you are looking to buy a home, you might want to avoid areas with the highest property tax rates.
Here’s an overview of which states and cities have the highest and lowest property taxes, based on an analysis reported by Fox 32 Chicago using Census Bureau data conducted by Construction Coverage.
States with the highest property taxes
According to Construction Coverage, the Midwest and Northeast states had the highest tax rates, led by Illinois and New Jersey.
Here are the five states with the highest property tax rates:
- Illinois: 1.793%
- New Jersey: 1.675%
- Vermont: 1.399%
- Nebraska: 1.379%
- Connecticut: 1.355%
States with the lowest property taxes
While Illinois and New Jersey had the highest tax rates, the lowest rates were in the South and the Mountain West.
The five states with the lowest property tax rates are:
- Hawaii: 0.308%
- Alabama: 0.372%
- Arizona: 0.426%
- Idaho: 0.433%
- South Carolina: 0.438%
Cities in Illinois have the highest property taxes in the U.S., with both Peoria and Waukegan ranking among the top three.