🏛️ Property Tax Rates by State: Highest & Lowest (2026)
Which states are most and least expensive for homeowners? We compared all 50 states by median home value, estimated annual property costs (using the 1.2% national average effective tax rate), and median rent — giving homeowners a full picture of ongoing housing costs by state.
Data: 2023 Census ACS 5-Year Estimates · Updated April 2026
Key Findings
- 1. Hawaii is the most expensive state for homeowners with a median home value of $808,200 — 165% above the national median of $305,000.
- 2. West Virginia is the most affordable, with a median home value of just $155,600 — estimated annual property costs of roughly $1,867 at the national average tax rate.
- 3. The top 15 most expensive states average $495,440 in median home value, versus $197,573 for the 15 cheapest — a difference of $297,867 per home.
- 4. Coastal states (CA, HI, MA, NY, WA) consistently rank as the most expensive; Midwest and Southern states dominate the affordable end of the spectrum.
15 Most Expensive States for Homeowners
Ranked by median home value, highest to lowest · Estimated annual property cost uses 1.2% national average effective tax rate
| # | State | Med. Home Value |
|---|---|---|
| 1 | Hawaii 163 cities tracked | $808,200 |
| 2 | District of Columbia 1 cities tracked | $724,600 |
| 3 | California 1618 cities tracked | $695,400 |
| 4 | Massachusetts 248 cities tracked | $525,800 |
| 5 | Washington 639 cities tracked | $519,800 |
| 6 | Colorado 482 cities tracked | $502,200 |
| 7 | Utah 334 cities tracked | $455,000 |
| 8 | Oregon 426 cities tracked | $454,200 |
| 9 | New Jersey 700 cities tracked | $427,600 |
| 10 | Nevada 133 cities tracked | $406,100 |
| 11 | New York 1289 cities tracked | $403,000 |
| 12 | Maryland 536 cities tracked | $397,700 |
| 13 | Idaho 236 cities tracked | $376,000 |
| 14 | Rhode Island 36 cities tracked | $368,800 |
| 15 | New Hampshire 100 cities tracked | $367,200 |
15 Most Affordable States for Homeowners
Ranked by median home value, lowest to highest · Estimated annual property cost uses 1.2% national average effective tax rate
| # | State | Med. Home Value |
|---|---|---|
| 1 | West Virginia 439 cities tracked | $155,600 |
| 2 | Mississippi 427 cities tracked | $161,400 |
| 3 | Arkansas 625 cities tracked | $175,300 |
| 4 | Oklahoma 846 cities tracked | $185,900 |
| 5 | Kentucky 554 cities tracked | $192,300 |
| 6 | Alabama 593 cities tracked | $195,100 |
| 7 | Iowa 1026 cities tracked | $195,900 |
| 8 | Ohio 1265 cities tracked | $199,200 |
| 9 | Indiana 976 cities tracked | $201,600 |
| 10 | Kansas 740 cities tracked | $203,400 |
| 11 | Louisiana 489 cities tracked | $208,700 |
| 12 | Missouri 1082 cities tracked | $215,600 |
| 13 | Michigan 745 cities tracked | $217,600 |
| 14 | Nebraska 593 cities tracked | $223,800 |
| 15 | New Mexico 527 cities tracked | $232,200 |
Regional Patterns in Homeownership Costs
Why Coastal States Cost More
States like California, Hawaii, Massachusetts, and New York have median home values 2–3x the national median. Factors include geographic constraints on new construction, high-income job concentrations driving demand, and strong historical appreciation in urban cores.
Why Midwest States Stay Affordable
States like Mississippi, West Virginia, Arkansas, and Kansas consistently have the lowest home values. Abundant land supply, lower population density, and more modest income growth keep housing costs grounded even as coastal markets have surged.
The Property Tax Trade-Off
A lower home value doesn't always mean a lower property tax bill — some affordable states (like Illinois and Texas) have higher effective tax rates that partially offset the lower sticker price. Always verify local effective rates when evaluating a specific city.
Income vs. Home Value
High-cost states don't always have proportionally higher incomes. California and New York have above-average incomes, but home values far outpace them. In contrast, many Midwest states show reasonable income-to-home-value ratios that make ownership achievable.
Frequently Asked Questions
Why is property tax often a bigger deal than the income-tax debate?
You used the national-average 1.2% rate — isn't that misleading for individual states?
How is "median home value" actually measured here?
Why are coastal states almost always the most expensive?
Should I move to a cheap state just for the tax savings?
What does this study NOT capture?
Methodology
State-level housing data comes from the 2023 American Community Survey 5-Year Estimates (US Census Bureau), aggregated across all tracked cities in each state. Median figures represent the middle value across all qualifying cities in the state, not an official statewide Census figure.
Estimated Annual Property Tax = Median Home Value × 1.2%. This uses the national average effective property tax rate as a rough proxy. Actual rates vary significantly by state and county — Illinois and New Jersey often exceed 2%, while Hawaii and Alabama are frequently below 0.5%.
States are ranked by median home value since that is the strongest Census-based signal for overall homeownership cost burden. For actual property tax rates by state, cross-reference with your state's department of revenue or the Lincoln Institute of Land Policy. Full methodology.
Data: 2023 Census ACS 5-Year Estimates · Updated April 2026