Before we dive into the specifics of each state, it’s important to understand what influences property taxes:
- Assessed Property Value: Local governments assess the value of a property, usually based on market value, and tax rates are applied to that value.
- Tax Levy Rate: The tax rate is typically expressed as a percentage of the assessed value. The local government sets the tax levy rate, which can vary by county or city.
- Exemptions and Deductions: Many states offer exemptions (e.g., for seniors, veterans, or primary residences) that reduce the amount of taxable property value.
Section 2: Property Tax Rates by State
1. Alabama
- Average Property Tax Rate: 0.41%
- Exemptions: Alabama offers exemptions for seniors (over 65) and for certain agricultural properties.
2. Alaska
- Average Property Tax Rate: 1.19%
- Exemptions: The state has no state income tax, and some municipalities offer exemptions, but the high property tax rate can be offset by the state’s Permanent Fund Dividend.
3. Arizona
- Average Property Tax Rate: 0.72%
- Exemptions: Arizona offers a Homestead Exemption that reduces the taxable value of a primary residence.
4. Arkansas
- Average Property Tax Rate: 0.61%
- Exemptions: Arkansas offers exemptions for disabled veterans and senior citizens, as well as agricultural land.
5. California
- Average Property Tax Rate: 0.73%
- Exemptions: Proposition 13 limits the tax rate to 1% of the assessed value, and the rate increases only 2% annually. Additionally, there are exemptions for disabled veterans and certain properties.
6. Colorado
- Average Property Tax Rate: 0.51%
- Exemptions: Colorado offers exemptions for seniors and veterans, as well as for certain agricultural properties.
7. Connecticut
- Average Property Tax Rate: 1.63%
- Exemptions: Connecticut offers property tax relief for senior citizens and veterans, and some municipalities provide additional exemptions.
8. Delaware
- Average Property Tax Rate: 0.43%
- Exemptions: Delaware has some of the lowest property tax rates in the U.S., with limited exemptions.
9. Florida
- Average Property Tax Rate: 0.83%
- Exemptions: Florida offers a Homestead Exemption and additional exemptions for seniors, veterans, and people with disabilities.
10. Georgia
- Average Property Tax Rate: 0.87%
- Exemptions: Georgia offers exemptions for seniors, veterans, and properties used for agricultural purposes.
11. Hawaii
- Average Property Tax Rate: 0.28%
- Exemptions: Hawaii has one of the lowest property tax rates in the country, but it offers exemptions for seniors and for primary residences.
12. Idaho
- Average Property Tax Rate: 0.69%
- Exemptions: Idaho offers a Homestead Exemption for primary residences, which helps reduce the taxable value.
13. Illinois
- Average Property Tax Rate: 2.30%
- Exemptions: Illinois has among the highest property tax rates in the country, but it offers various exemptions, including for seniors, veterans, and disabled individuals.
14. Indiana
- Average Property Tax Rate: 0.87%
- Exemptions: Indiana offers deductions for homesteads and exemptions for veterans, seniors, and disabled individuals.
15. Iowa
- Average Property Tax Rate: 1.53%
- Exemptions: Iowa offers various property tax credits for seniors, veterans, and certain agricultural properties.
16. Kansas
- Average Property Tax Rate: 1.39%
- Exemptions: Kansas has relatively high property tax rates but offers exemptions for agricultural properties and some for seniors.
17. Kentucky
- Average Property Tax Rate: 0.83%
- Exemptions: Kentucky has moderate property tax rates, with some exemptions for seniors and veterans.
18. Louisiana
- Average Property Tax Rate: 0.53%
- Exemptions: Louisiana offers a Homestead Exemption and exemptions for seniors and disabled veterans.
19. Maine
- Average Property Tax Rate: 1.03%
- Exemptions: Maine offers a Homestead Exemption and property tax relief programs for seniors.
20. Maryland
- Average Property Tax Rate: 1.10%
- Exemptions: Maryland offers exemptions for seniors and veterans, and various property tax credits for homeowners.
21. Massachusetts
- Average Property Tax Rate: 1.05%
- Exemptions: Massachusetts provides exemptions for seniors, veterans, and low-income individuals, as well as for primary residences.
22. Michigan
- Average Property Tax Rate: 1.54%
- Exemptions: Michigan offers a homestead exemption and additional relief for seniors and veterans.
23. Minnesota
- Average Property Tax Rate: 1.09%
- Exemptions: Minnesota has various property tax relief programs for seniors, disabled individuals, and veterans.
24. Mississippi
- Average Property Tax Rate: 0.81%
- Exemptions: Mississippi has relatively low property tax rates, with exemptions for agricultural properties and certain other land uses.
25. Missouri
- Average Property Tax Rate: 0.97%
- Exemptions: Missouri offers exemptions for seniors, veterans, and agricultural properties.
26. Montana
- Average Property Tax Rate: 0.83%
- Exemptions: Montana offers some tax exemptions for seniors, veterans, and for properties used for agricultural purposes.
27. Nebraska
- Average Property Tax Rate: 1.76%
- Exemptions: Nebraska offers exemptions for agricultural land and some tax relief for seniors.
28. Nevada
- Average Property Tax Rate: 0.60%
- Exemptions: Nevada has relatively low property tax rates and provides exemptions for seniors, veterans, and disabled individuals.
29. New Hampshire
- Average Property Tax Rate: 2.19%
- Exemptions: New Hampshire offers property tax exemptions for senior citizens and veterans.
30. New Jersey
- Average Property Tax Rate: 2.47%
- Exemptions: New Jersey has some of the highest property tax rates in the nation, but offers various exemptions for seniors and veterans.
31. New Mexico
- Average Property Tax Rate: 0.77%
- Exemptions: New Mexico offers exemptions for seniors, veterans, and certain agricultural properties.
32. New York
- Average Property Tax Rate: 1.68%
- Exemptions: New York offers a variety of exemptions, including those for seniors, veterans, and primary residences.
33. North Carolina
- Average Property Tax Rate: 0.85%
- Exemptions: North Carolina provides exemptions for seniors and disabled individuals, as well as for agricultural land.
34. North Dakota
- Average Property Tax Rate: 1.05%
- Exemptions: North Dakota offers exemptions for senior citizens and agricultural properties.
35. Ohio
- Average Property Tax Rate: 1.56%
- Exemptions: Ohio offers a Homestead Exemption for seniors and disabled individuals, as well as tax relief for agricultural properties.
36. Oklahoma
- Average Property Tax Rate: 0.87%
- Exemptions: Oklahoma provides exemptions for seniors, veterans, and agricultural properties.
37. Oregon
- Average Property Tax Rate: 0.97%
- Exemptions: Oregon offers exemptions for seniors and veterans, and various property tax deferrals for qualifying individuals.
38. Pennsylvania
- Average Property Tax Rate: 1.35%
- Exemptions: Pennsylvania provides exemptions for senior citizens, veterans, and agricultural properties.
39. Rhode Island
- Average Property Tax Rate: 1.63%
- Exemptions: Rhode Island offers exemptions for seniors and low-income individuals.
40. South Carolina
- Average Property Tax Rate: 0.57%
- Exemptions: South Carolina offers a Homestead Exemption for seniors, and tax breaks for certain veterans.
41. South Dakota
- Average Property Tax Rate: 1.32%
- Exemptions: South Dakota offers some tax relief for seniors and disabled individuals.
42. Tennessee
- Average Property Tax Rate: 0.74%
- Exemptions: Tennessee offers exemptions for seniors and veterans.
43. Texas
- Average Property Tax Rate: 1.83%
- Exemptions: Texas offers a Homestead Exemption, and exemptions for veterans and disabled individuals.
44. Utah
- Average Property Tax Rate: 0.64%
- Exemptions: Utah offers exemptions for senior citizens and agricultural land.
45. Vermont
- Average Property Tax Rate: 1.90%
- Exemptions: Vermont offers exemptions for senior citizens, veterans, and for certain agricultural properties.
46. Virginia
- Average Property Tax Rate: 0.80%
- Exemptions: Virginia offers property tax relief for seniors and disabled individuals, as well as exemptions for certain agricultural properties.
47. Washington
- Average Property Tax Rate: 0.93%
- Exemptions: Washington provides property tax exemptions for seniors, disabled individuals, and some agricultural properties.
48. West Virginia
- Average Property Tax Rate: 0.59%
- Exemptions: West Virginia offers various exemptions for seniors and disabled individuals.
49. Wisconsin
- Average Property Tax Rate: 1.68%
- Exemptions: Wisconsin offers a variety of exemptions for seniors and veterans, as well as for certain agricultural properties.
50. Wyoming
- Average Property Tax Rate: 0.61%
- Exemptions: Wyoming offers some of the lowest property tax rates in the country, with exemptions for seniors and veterans.
Property tax rates can vary significantly across the U.S., influenced by state and local policies. When considering relocating or investing in real estate, it’s important to factor in property taxes, as they can significantly impact your overall cost of ownership. Each state provides unique exemptions, deductions, and credits that can help reduce the financial burden of property taxes, especially for seniors, veterans, and agricultural landowners.
Make sure to consult with local property tax professionals in your area for the most current information on rates and exemptions.