Homeowners in these 20 states have the lowest property tax rates in the US. See how the states rank.
Business Insider
February 25, 2026
AI-Generated Deep Dive Summary
Property taxes play a significant role in determining the cost of homeownership across the United States. While some states impose high tax rates that can strain household budgets, others offer much lower rates, making them more attractive for homebuyers. New Jersey leads with the highest property tax rate at 2.11%, where homeowners pay $9,590 annually on a median-valued property of $454,400. In contrast, Hawaii has the lowest real estate taxes in the country, with an effective rate of just 0.27%. Despite having some of the most expensive homes, residents there pay only $2,239 yearly on a median home valued at $839,100.
The impact of property taxes extends beyond individual budgets, influencing state economies and housing markets. States with higher tax rates often see homeowners facing significant financial burdens, which can affect savings and long-term affordability. For instance, in
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Originally published on Business Insider on 2/25/2026