Overview
- The average U.S. household pays $3,119 a year in property taxes, a cost that also influences rents because these levies fund local services.
- WalletHub’s rankings place Hawaii lowest at a 0.27% effective rate (about $888 on a $332,700 home) and New Jersey highest at 2.11% (about $7,022 on the same home, or $9,590 on the state’s median value), with Illinois at 2.01%.
- The analysis uses U.S. Census data, calculating effective rates from median tax payments and home prices, then applying a national median home value of $332,700 to compare dollar amounts across states.
- Vehicle property taxes vary separately, with New Jersey, Illinois, Vermont, New York and Texas among the highest, and Virginia topping the chart at an estimated 3.97% based on a typical 2025 Toyota Camry.
- Policy responses are accelerating, including Texas’s proposed “Operation Double Nickel” to extend tax freezes and larger homestead exemptions to homeowners 55 and older, Tennessee’s plan to fully reimburse qualifying seniors, Florida House proposals to phase out non-school property taxes, and five Ohio bills under review to cap or recalibrate local levies.