Worst States for Property Taxes: A Financial Guide

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 for a stress-free 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 Tax Foundation's most recent data.

10. Wisconsin 

Effective tax rate: 1.32%

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.

9. Iowa

Effective tax rate: 1.33%

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.

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.

8. Ohio

Effective tax rate: 1.36%

The state of Ohio has been looking for ways to get a handle on its high property taxes. In March, the legislature overhauled its property tax laws to lower property tax burdens for seniors, and its considering eliminating property taxes over the next few years. Although its too soon to see the impact of these changes, Ohio residents are hoping for some tax relief.

7. Texas

Effective tax rate: 1.40%

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. Nebraska

Effective tax rate: 1.44%

Nebraskans are well aware they pay some of the highest personal property taxes in the country. The state has given hefty tax credits over the last few years, but lawmakers have not been able to legislate effective long-term solutions.

5. New Hampshire

Effective tax rate: 1.50%

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

4. Vermont

Effective tax rate: 1.51%

Vermont's real estate taxes are on the higher end, with local governments and schools relying heavily on property tax revenue. The state's rural nature means fewer alternative revenue sources.

3. Connecticut

Effective tax rate: 1.54%

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: 1.88%

Illinois leads the nation in property tax rates. High local tax levies fund schools and municipalities, especially in Cook County, which includes Chicago.

1. New Jersey

Effective tax rate: 1.88%

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.

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