Buying a new home involves a number of factors to consider. Most of the time, we often place a high value on the community in which we live. Property taxes, however, play a significant part in supporting the local community, such as schools and infrastructure. Almost all property owners in every state are required to pay real estate taxes, and each state has its own property tax.

When searching for real estate, keep in mind that property taxes contribute to homeownership costs. To get you started, here is a quick overview of the financial charges and a list of property taxes by the state.

What Are Property Taxes?

A home's value is used to determine its property taxes, which are calculated locally. Depending on your state and municipality's tax rates and the value of your property, you will have to pay a certain amount.

The Urban Institute & Brookings Institution's Tax Policy Center reports that property taxes are levied by jurisdictions in all 50 states and the District of Columbia. The majority of property tax revenue comes from local levies, which can be imposed by:

• Counties
• Municipalities
• Townships
• School Districts
• Special Districts  (an independent government unit formed for a specific purpose)

Some municipalities adjust their property tax rates only once every few years, but other municipalities reassess their taxes every year. To find out how often property taxes are calculated, you should contact your city or county assessor's office.

How Are Property Taxes Calculated?

In some cases, your home's assessed value  for property taxes will match its actual value, but that won't always be the case. It is possible that you will have to pay more taxes as a result of that gap. In addition to your state and county of residence, you'll have to pay property taxes based on your home's overall value. It includes both the land itself and the structures on it. Due to a lower assessed value, vacant land will likely have lower real estate taxes.

A mill is equal to one-thousandth of a dollar, and it is the unit used to calculate assessments. Three values are multiplied by an assessor to come up with the annual property tax liability:

• the state tax rate
• the assessment ratio (the portion of a property's value subject to tax)
• the property value

The value of some of these items fluctuates depending on the market and the state. There are different frequencies at which states assess properties. Some do it annually, while others only do it every few years.

Property Taxes Ranked by State

Listed below are the average property taxes by state, alphabetically. Based on the second quarter of 2022, it presents both the annual property tax on a median-value home in the state and, for comparison, the property tax on the $440,300 national median home price.

State	Average State Tax Rate	Median Home Value	Annual Tax on Median Value Home in State	Annual Tax on Median Value Home in U.S. ($440,300)*
Alabama	0.41%	$209,000	$857	$1,805
Alaska	1.19%	$345,741	$4,114	$5,240
Arizona	0.66%	$451,099	$2,977	$2,906
Arkansas	0.62%	$180,282	$1,118	$2,730
California	0.76%	$792,787	$6,025	$3,346
Colorado	0.51%	$593,502	$3,027	$2,246
Connecticut	2.14%	$383,934	$8,216	$9,422
Delaware	0.57%	$358,080	$2,041	$2,510
District of Columbia	0.56%	$811,792	$4,546	$2,466
Florida	0.89%	$423,929	$3,773	$3,919
Georgia	0.92%	$322,949	$2,971	$4,051
Hawaii	0.28%	$1,055,488	$2,955	$1,233
Idaho	0.69%	$468,858	$3,235	$3,038
Illinois	2.27%	$270,237	$6,134	$9,995
Indiana	0.85%	$223,194	$1,897	$3,743
Iowa	1.57%	$194,962	$3,061	$6,913
Kansas	1.41%	$209,278	$2,951	$6,208
Kentucky	0.86%	$200,423	$1,724	$3,787
Louisiana	0.55%	$217,296	$1,195	$2,422
Maine	1.36%	$362,346	$4,928	$5,988
Maryland	1.09%	$416,491	$4,540	$4,799
Massachusetts	1.23%	$607,274	$7,469	$5,416
Michigan	1.54%	$234,217	$3,607	$6,781
Minnesota	1.12%	$337,891	$3,784	$4,931
Mississippi	0.81%	$168,039	$1,361	$3,566
Missouri	0.97%	$232,983	$2,260	$4,271
Montana	0.84%	$457,014	$3,839	$3,699
Nebraska	1.73%	$240,540	$4,161	$7,617
Nevada	0.60%	$477,693	$2,866	$2,642
New Hampshire	2.18%	$455,286	$9,925	$9,599
New Jersey	2.49%	$484,393	$12,061	$10,963
New Mexico	0.80%	$299,214	$2,394	$3,522
New York	1.72%	$379,307	$6,524	$7,573
North Carolina	0.84%	$326,383	$2,742	$3,699
North Dakota	0.98%	$284,545	$2,789	$4,315
Ohio	1.56%	$215,306	$3,359	$6,869
Oklahoma	0.90%	$184,901	$1,664	$3,963
Oregon	0.97%	$525,191	$5,094	$4,271
Pennsylvania	1.58%	$269,306	$4,255	$6,957
Rhode Island	1.63%	$446,155	$7,272	$7,177
South Carolina	0.57%	$299,604	$1,708	$2,510
South Dakota	1.31%	$296,908	$3,889	$5,768
Tennessee	0.71%	$304,074	$2,159	$3,126
Texas	1.80%	$316,247	$5,692	$7,925
Utah	0.63%	$595,922	$3,754	$2,774
Vermont	1.90%	$367,290	$6,979	$8,366
Virginia	0.82%	$382,825	$3,139	$3,610
Washington	0.98%	$628,988	$6,164	$4,315
West Virginia	0.58%	$140,027	$812	$2,554
Wisconsin	1.858%	$267,991	$4,979	$8,181
Wyoming	0.61%	$324,707	$1,981	$2,686
Sources: Roofstock.com, Zillow Home Values Index, FRED (Federal Reserve Bank of St. Louis) *as of Q2 2022

State Property Tax Exemptions

The majority of U.S. homeowners are required to pay property taxes, but some properties are exempted. The difference between this and a tax deduction is that a tax deduction only lowers the amount of tax owed by an individual or group. Several individuals qualify for exemptions from property taxes, including seniors, STAR (School Tax Relief) participants, disabled individuals, and veterans. The exemption may also apply to certain government, nonprofit, and religious entities.

Homeowners with low incomes or who are vulnerable are typically the priority of property exemption programs. The Homestead Exemption may also apply to taxpayers whose primary residence is their home. There are also situations where you can apply for multiple exemptions if you live in a certain area. Many people may be able to save thousands of dollars on real estate taxes as a result.

Your state's laws, local municipality, and the situation may determine your eligibility. If you need assistance navigating the available programs, contact the appropriate local services.