Nationally, across the 87 million owner-occupied homes in the U.S., the average amount of annual real estate taxes paid in 2024 was $4,271, according to NAHB analysis of the 2024 American Community Survey. Homeowners in New Jersey continued to pay the highest real estate taxes, paying an average of $9,767, $2,194 more than the next closest state, New York, at $7,573. On the other end of the distribution, homeowners in West Virginia paid the lowest average amount of real estate taxes at $1,044. The map below shows the geographic variation of average annual real estate taxes (RETs) paid.
The 2024 data indicate that there is no state where real estate taxes paid were on average less than $1,000, the first time in the ACS data. There continues to be noticeable differences in the average amount of taxes paid based on geographic location. States in the Northeast, where home values tend to be higher, pay more on average in real estate taxes compared to states in other parts of the nation.
Average Effective Property Tax Rates
While average annual real estate taxes paid is important, it provides an incomplete picture. Property values vary across states, which explains some, if not most, of the variation across the nation in average annual real estate taxes. To control for property values and create a more informative state-by-state analysis, NAHB calculates the average effective property tax rates by dividing aggregate real estate taxes paid by aggregate value of owner-occupied housing within each state. For example, the aggregate real estate taxes paid across the U.S. was $370.0 billion with an aggregate value of owner-occupied real estate totaling $41.7 trillion in 2024. Using these two amounts, the average effective property tax rate nationally was $8.88 ($370.0 billion/$41.7 trillion) per $1,000 in home value. This effective rate can be expressed as a percentage of home value or as a dollar amount taxed per $1,000 of a home’s value. The map below displays the effective rate by state.
Illinois, for the second consecutive year, had the highest effective property tax rate at $17.93 per $1,000 of home value. Hawaii continued to have the lowest effective property tax rate at $3.08 per $1,000 of home value. Hawaii also had the highest average home value, at $1.05 million in 2024. Notably, the average effective property tax rate tends to be higher in the Northeast, in addition to the presence of higher home values. The complete data set is available here.
6 Responses
This is great information. Is it also possible to show the average property tax per home by state? Thanks.
Hi Curtis, We have attached a file to the end of the blog that contains the data set used.
Wonderful, but why not provide the data for those who might want them? The marginal cost to NAHB must be close to zero.
Hi Morton, We have attached a file to the end of the blog that contains the data set used.
This is an incredibly valuable and clear data visualization. Having this state-by-state breakdown is essential for understanding the real cost of homeownership beyond just the mortgage. The disparity between states like New Jersey and Hawaii, which have similar effective rates but vastly different median tax bills, really highlights the interplay between tax rates and home values. This is a fantastic resource for policymakers, potential movers, and industry analysts alike.
For high-tax states that don’t have a natural “high home value” explanation (like Illinois or Connecticut), does the data point to a reliance on property taxes to fund a broader range of local services (e.g., schools, pensions, infrastructure) that are funded by other revenue sources, like income or sales tax, in other parts of the country?
Larry brings up an interesting point, about property taxes funding other things that sales or income taxes would or could pay across the states. As such, some additional analysis is needed to compare states that don’t have income or sales taxes against the other states that have all three and see if in those states property taxes are higher and are paying for more things that if the state had a sales or income tax, those taxes would be paying for instead.