One of the first things I like to look at when researching new markets is property taxes. Knowing property taxes of your market is vitally important. It can single handedly make or break your deal. Property taxes can be calculated a lot of different ways, so when you dial down into a market that makes sense for your investing, it’s a good idea to call your county’s assessor’s office and find out how they calculate property taxes.
This chart from Wallet Hub is the 2021 property tax guide per state. Typically taxes vary by county, so while this is a 10,000 foot view, it’s essential to know how your county calculates taxes. That said, though, this is a good place to start!
Real-Estate Property Tax Rates by State
| Rank (1=Lowest) | State | Effective Real-Estate Tax Rate | Annual Taxes on $217.5K Home* | State Median Home Value | Annual Taxes on Home Priced at State Median Value |
|---|---|---|---|---|---|
| 1 | Hawaii | 0.28% | $606 | $615,300 | $1,715 |
| 2 | Alabama | 0.41% | $895 | $142,700 | $587 |
| 3 | Colorado | 0.51% | $1,113 | $343,300 | $1,756 |
| 4 | Louisiana | 0.55% | $1,187 | $163,100 | $890 |
| 5 | District of Columbia | 0.56% | $1,221 | $601,500 | $3,378 |
| 6 | South Carolina | 0.57% | $1,238 | $162,300 | $924 |
| 6 | Delaware | 0.57% | $1,240 | $251,100 | $1,431 |
| 8 | West Virginia | 0.58% | $1,269 | $119,600 | $698 |
| 9 | Nevada | 0.60% | $1,310 | $267,900 | $1,614 |
| 10 | Wyoming | 0.61% | $1,319 | $220,500 | $1,337 |
| 11 | Arkansas | 0.62% | $1,358 | $127,800 | $798 |
| 12 | Utah | 0.63% | $1,362 | $279,100 | $1,748 |
| 13 | Arizona | 0.66% | $1,446 | $225,500 | $1,499 |
| 14 | Idaho | 0.69% | $1,492 | $212,300 | $1,456 |
| 15 | Tennessee | 0.71% | $1,548 | $167,200 | $1,190 |
| 16 | California | 0.76% | $1,644 | $505,000 | $3,818 |
| 17 | New Mexico | 0.80% | $1,740 | $171,400 | $1,371 |
| 18 | Mississippi | 0.81% | $1,751 | $119,000 | $958 |
| 19 | Virginia | 0.82% | $1,779 | $273,100 | $2,234 |
| 20 | Montana | 0.84% | $1,818 | $230,600 | $1,928 |
| 20 | North Carolina | 0.84% | $1,833 | $172,500 | $1,454 |
| 22 | Indiana | 0.85% | $1,853 | $141,700 | $1,207 |
| 23 | Kentucky | 0.86% | $1,866 | $141,000 | $1,210 |
| 24 | Florida | 0.89% | $1,934 | $215,300 | $1,914 |
| 25 | Oklahoma | 0.90% | $1,952 | $136,800 | $1,228 |
| 26 | Georgia | 0.92% | $2,006 | $176,000 | $1,623 |
| 27 | Missouri | 0.97% | $2,111 | $157,200 | $1,526 |
| 27 | Oregon | 0.97% | $2,116 | $312,200 | $3,037 |
| 29 | North Dakota | 0.98% | $2,138 | $193,900 | $1,906 |
| 29 | Washington | 0.98% | $2,134 | $339,000 | $3,326 |
| 31 | Maryland | 1.09% | $2,370 | $314,800 | $3,430 |
| 32 | Minnesota | 1.12% | $2,429 | $223,900 | $2,500 |
| 33 | Alaska | 1.19% | $2,599 | $270,400 | $3,231 |
| 34 | Massachusetts | 1.23% | $2,667 | $381,600 | $4,679 |
| 35 | South Dakota | 1.31% | $2,857 | $167,100 | $2,195 |
| 36 | Maine | 1.36% | $2,953 | $190,400 | $2,585 |
| 37 | Kansas | 1.41% | $3,060 | $151,900 | $2,137 |
| 38 | Michigan | 1.54% | $3,343 | $154,900 | $2,381 |
| 39 | Ohio | 1.56% | $3,390 | $145,700 | $2,271 |
| 40 | Iowa | 1.57% | $3,407 | $147,800 | $2,315 |
| 41 | Pennsylvania | 1.58% | $3,442 | $180,200 | $2,852 |
| 42 | Rhode Island | 1.63% | $3,548 | $261,900 | $4,272 |
| 43 | New York | 1.72% | $3,749 | $313,700 | $5,407 |
| 44 | Nebraska | 1.73% | $3,754 | $155,800 | $2,689 |
| 45 | Texas | 1.80% | $3,907 | $172,500 | $3,099 |
| 46 | Wisconsin | 1.85% | $4,027 | $180,600 | $3,344 |
| 47 | Vermont | 1.90% | $4,135 | $227,700 | $4,329 |
| 48 | Connecticut | 2.14% | $4,658 | $275,400 | $5,898 |
| 49 | New Hampshire | 2.18% | $4,738 | $261,700 | $5,701 |
| 50 | Illinois | 2.27% | $4,942 | $194,500 | $4,419 |
| 51 | New Jersey | 2.49% | $5,419 | $335,600 | $8,362 |
*$217,500 is the median home value in the U.S. as of 2019, the year of the most recent available data.
