WalletHub ranks states by effective property tax rates and estimated annual debt – using a national median home value of $332,700 in 2024 (latest data available) and each state’s median home value.
Hawaii ranks first with the lowest effective rate at 0.27%, which translates to $888 for a $332,700 home. Because Hawaii’s median home value is $839,100, the average annual premium is $2,239.
Alabama followed at 0.38%, or $1,249 on a $332,700 home. Nevada ranked third at 0.47%, or $1,549. Arizona, Colorado and South Carolina were next with 0.48%.
Idaho came in seventh at 0.49%, while Delaware and Tennessee tied at 0.5%. Utah rounded out the top 10 with 0.52%.
Finally, New Jersey ranked last with an effective rate of 2.11%, with homeowners paying $7,022 on a $332,700 home and $9,590 on the state’s median home price of $454,400.
Illinois followed at 2.01%, or $6,694. Connecticut ranked 49th at 1.81%, or $6,024. New Hampshire was 48th at 1.66%, or $5,511.
Texas and Nebraska tied at 1.49%, which equates to $4,961 and $4,949, respectively, on a $332,700 home. New York ranked 46th at 1.55%, or $5,167.
The wide disparity has prompted new proposals aimed at easing the burden – particularly on the elderly.
Tennessee’s proposal targets full refunds for seniors
In Tennessee, Rutherford County Property Assessor Rob Mitchell recently launched the Tennessee Golden Homeowners Tax Relief Program.
That proposal would fully refund property taxes on the primary residences of eligible residents age 65 and older who have maintained county residency for at least 20 years.
Mitchell said the cost of the program would equal 3% of Tennessee’s annual state budget and could be funded from the state’s recurring surplus, which is estimated at $1.5 billion to $2.5 billion annually.
“The money is there. The question is important,” he said. “If Tennessee can provide $1 billion annually in tax cuts to big businesses, we can really protect the seniors who build our communities and have been paying into the system for decades.”
Under current law, Tennessee reimburses eligible low-income seniors and homeowners with disabilities a portion of their property tax bills. That program, managed by the state comptroller’s office, distributes more than R40 million annually to more than 100,000 residents.
Mitchell said the expanded program would help prevent foreclosures and allow seniors to redirect limited income to local goods, services and health care.
Supporters are circulating a petition on Change.org to build momentum for legislative action.
Texas, Florida, Ohio have big changes
Elsewhere, lawmakers are considering broader reforms.
In Texas, Lt. Gov. Dan Patrick announced “Operation Double Nickel,” which would lower the age of the top estate tax benefits from 65 to 55.
According to his website, the proposal would “accelerate the school property tax abatement, reduce the school property tax and freeze the recommended rates for more than 3.3 million homeowners, forever, by taking the current over-65 tax freeze on the tax rate for homeowners 55 and older.”
Eligible homeowners will see school-related property tax rates frozen at age 55.
Seniors already get a partial exemption on the school tax that was recently raised from $10,000 to $60,000. Patrick said the new proposal would save eligible Texans about $900 to $1,000 a year — or up to $10,000 if they’re between the ages of 55 and 65.
He also proposed increasing the homestead exemption by another $40,000 — raising the exemption to $180,000 for non-seniors and $240,000 for Texans 55 and older.
Under the plan, a senior with a $300,000 home would be taxed as if it were worth $60,000 instead of $100,000.
“Over the past few years, the average homeowner in Texas has saved $2,000 in property taxes with the increased housing relief and some of the pressures we’re working on there. But that’s not enough, and we all know it’s not enough,” Patrick said.
In Florida, House Republicans are proposing advanced proposals that would eliminate or eliminate the non-school property tax within 10 years — including a measure aimed at residents 65 and older.
I Florida Policy Institute estimates a $43 billion funding gap under the House proposals.
In Ohio, Gov. Mike DeWine is reviewing five property tax bills approved by the Republican-controlled legislature.
Those measures would allow county officials to reduce previously approved taxes, limit tax bill growth to inflation and remove the burden of proof in assessment disputes.
As states liberalize the debate, property taxes remain a central — and increasingly politically charged — part of the cost of living.
