Illinois homeowners pay nearly 2% of their home's value in property tax every year — here's the full 2026 ranking of the 10 states with the highest property tax rates.

Updated: August 2026 | Source: U.S. Census Bureau 2024 ACS, via SmartAsset 2026 analysis

The 10 States With the Highest Property Taxes (2026)

Property tax rates vary more than almost any other tax type in the U.S. Here's where homeowners pay the most, as a share of their home's value.

A high rate doesn't always mean the highest dollar bill — but for most of the states on this list, it does. Illinois and New Jersey top the list on both counts.

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1.92%

Illinois — highest rate

$9,358

Highest median bill: New Jersey

0.89%

U.S. average rate

7x

Illinois' rate vs. Hawaii's

Worth noting: Six of the ten states on this list are in the Northeast or Midwest — regions that generally fund schools and local services more heavily through property taxes than sales or income tax.

Highest Property Tax States, Ranked #1 to #10

1

Illinois — 1.92%

The highest effective property tax rate in the country. On the state's median home value of $280,700, that works out to $5,399 a year.

Median Home $280,700Median Tax $5,399/yr

2

New Jersey — 1.89%

A close second on rate, but New Jersey's much higher median home value ($496,000) makes it the most expensive state in the country in dollar terms.

Median Home $496,000Median Tax $9,358/yr

3

Connecticut — 1.66%

A relatively modest median home value ($396,900) still produces a hefty $6,573 annual tax bill thanks to the third-highest rate in the nation.

Median Home $396,900Median Tax $6,573/yr

4

New Hampshire — 1.46%

No income tax and no sales tax — property owners make up the difference. New Hampshire's rate is the highest among the nine states with no income tax.

Median Home $458,800Median Tax $6,707/yr

5

New York — 1.45%

Combined with high home values statewide, New York's rate produces one of the largest median tax bills in the country.

Median Home $449,800Median Tax $6,542/yr

T-6

Nebraska — 1.42%

Tied for sixth-highest. A relatively low median home value ($263,100) keeps the dollar bill more moderate than the rate alone would suggest.

Median Home $263,100Median Tax $3,739/yr

T-6

Vermont — 1.42%

Tied with Nebraska for sixth. Vermont's smaller population and higher reliance on local property tax for school funding drives the rate up.

Median Home $352,800Median Tax $5,026/yr

8

Texas — 1.31%

Texas has no state income tax, and like New Hampshire, leans on property tax to make up the difference — the highest rate of any no-income-tax state after New Hampshire.

Median Home $313,200Median Tax $4,108/yr

9

Iowa — 1.29%

A below-average median home value ($227,300) doesn't fully offset Iowa's above-average rate, producing a median bill higher than many pricier states.

Median Home $227,300Median Tax $2,937/yr

T-10

Kansas — 1.25%

Tied for tenth with Wisconsin (not shown). Rounds out the top 10 with a moderate home value and above-average rate.

Median Home $238,700Median Tax $2,983/yr

Frequently Asked Questions

Which state has the highest property taxes in 2026?

Illinois has the highest effective property tax rate at 1.92%. New Jersey is close behind at 1.89%, but has the highest median dollar amount ($9,358/year) due to higher home values.

Why are property taxes so high in the Northeast and Midwest?

Many of these states rely heavily on local property taxes to fund public schools and municipal services, rather than higher state income or sales taxes.

Is a high property tax rate always a high dollar bill?

Usually, but not always. A high rate on a lower-value home (like Nebraska or Iowa) can still produce a smaller bill than a lower rate on an expensive home elsewhere.

StatewiseFinance's Take: If you're a teacher, firefighter, or public employee using a state or local down payment assistance program, don't just compare purchase price limits — factor in the property tax rate too. A cheaper home in a high-rate state can end up costing more per year than a pricier home somewhere with a lower rate.

Bottom Line: Six of the ten highest property tax states cluster in the Northeast and Midwest. Before buying in one of these states, run the actual annual dollar cost — not just the rate — against your budget.

Lowest Property Tax StatesSee the other end of the ranking Lowest Tax Burden StatesSee the full combined tax picture by state State RankingsMore state-by-state comparisons Loan CalculatorSee how property tax affects your budget

Disclaimer: This post is for informational purposes only and does not constitute financial or tax advice. Figures are based on U.S. Census Bureau 2024 American Community Survey data via SmartAsset's 2026 analysis and are subject to change. Consult a tax professional or your local assessor's office for guidance specific to your property. Data verified against SmartAsset's published 2026 methodology — see our Editorial Standards for how we research and verify every guide.