Research

The Property Tax Report 2026: Collections, Effective Rates, and Burden by State

By The Ledgerism Editorial Team · The Ledgerism Brief Editorial Team produces original, methodology-disclosed accounting and tax research—data trackers, databases, and reference guides built to be the most-cited source in the field. Every figure is verified against primary sources including FASB, the IRS, the PCAOB, NASBA, the AICPA, and state boards of accountancy.

Property taxes are the single largest tax source for U.S. state and local governments combined and the dominant funding source for local government. This report compiles verified figures from the U.S. Census Bureau, the American Community Survey, and the Lincoln Institute of Land Policy on total collections, effective rates by state, median bills, per-capita burden, and the property tax’s role in local government and school funding. Every statistic below carries its exact year, geography, and primary source.

Key definitions used throughout:
– Effective property tax rate (ACS method): median real estate taxes paid divided by median home value for owner-occupied housing. This is an outcome ratio, not a statutory millage rate.
– General revenue: total state and local revenue including intergovernmental transfers, taxes, charges, and fees.
– Own-source general revenue: general revenue excluding transfers from other governments.
– Local tax collections: taxes levied by local governments (counties, municipalities, school districts, special districts).

Executive summary

• U.S. state and local governments collected $797 billion in property taxes in calendar year 2024, up 8.2% from 2023 (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, reported March 2025).
• Property tax was 38% of all state and local tax collections in 2024, the largest single tax source, ahead of sales and individual income taxes (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, 2024).
• Property taxes accounted for 70.0% of all local government tax collections in fiscal year 2023, making the property tax the backbone of local finance (Source: Tax Foundation analysis of U.S. Census Bureau data, FY2023).
• Illinois had the highest effective property tax rate at 1.96% of home value in 2024; Hawaii had the lowest at 0.27% (Source: Tax Foundation / Motley Fool analysis of American Community Survey, 2024).
• New Jersey had the highest median real estate taxes paid at $9,435 in 2024; West Virginia was among the lowest near $1,134 (Source: U.S. Census Bureau, American Community Survey, 2024).
• Property taxes supplied roughly 15% of combined state and local general revenue and about 30% of total state and local tax collections in fiscal year 2021 (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• New Hampshire was the most property-tax-reliant state in 2021, with property tax at 33% of combined state and local general revenue; New Jersey followed at 27% (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• Local governments provided about 44% of K-12 public education revenue, and roughly 80% of that local share comes from property taxes (Source: Lincoln Institute of Land Policy).

Key findings

• U.S. state and local property tax collections reached $797 billion in calendar year 2024 (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, March 2025).
• Property tax collections rose 8.2% from 2023 to 2024, driven largely by 2023-2024 home price inflation (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, 2024).
• Total state and local tax revenue was $2.095 trillion in 2024, up 4.6% from $2.004 trillion in 2023 (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, 2024).
• Property tax was 38% of all state and local tax collections in 2024, the largest single share (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, 2024).
• Property taxes were 70.0% of local government tax collections in fiscal year 2023 (Source: Tax Foundation analysis of U.S. Census Bureau data, FY2023).
• The national average effective property tax rate was 0.888% of home value ($8.88 per $1,000) in 2024 (Source: NAHB Eye on Housing analysis of American Community Survey, 2024).
• Illinois had the highest effective property tax rate in 2024 at 1.96% ($17.93 per $1,000 of home value), for the second consecutive year (Source: NAHB Eye on Housing / Motley Fool analysis of American Community Survey, 2024).
• Hawaii had the lowest effective property tax rate in 2024 at 0.27% ($3.08 per $1,000 of home value) (Source: NAHB Eye on Housing / Motley Fool analysis of American Community Survey, 2024).
• New Jersey homeowners paid the highest median real estate taxes at $9,435 in 2024 (Source: U.S. Census Bureau, American Community Survey, 2024).
• The national median real estate tax bill for owner-occupied homes was about $2,937 in 2024 (Source: U.S. Census Bureau, American Community Survey, 2024).
• New Hampshire was the most property-tax-reliant state in fiscal year 2021, at 33% of combined state and local general revenue (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• Eight states collected less than 10% of their state and local general revenue from property taxes in fiscal year 2021: Alabama, Arkansas, Delaware, Kentucky, Louisiana, New Mexico, Oklahoma, and West Virginia (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• The District of Columbia had the highest state-and-local property tax collections per capita at $3,740 in fiscal year 2021; New Jersey followed at $3,378 (Source: Tax Foundation analysis of U.S. Census Bureau data, FY2021).
• Property taxes supplied about 15% of combined state and local general revenue in fiscal year 2021 (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• Across the 53 largest U.S. cities, the average effective tax rate on a median-valued home was 1.22% in 2024 (Source: Lincoln Institute of Land Policy / Minnesota Center for Fiscal Excellence, 50-State Property Tax Comparison Study for Taxes Paid in 2024).

Section 1: Total collections and share of state/local revenue

Property tax is the largest single tax stream for U.S. state and local governments taken together, and it grew sharply in the most recent data as home values rose.

• U.S. state and local property tax collections were $797 billion in calendar year 2024 (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, March 2025).
• That was an 8.2% increase over 2023 collections (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, 2024).
• In the fourth quarter of 2023, property taxes on a trailing four-quarter, seasonally adjusted basis were $778.9 billion, up 12.5% year over year (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, Q4 2023, via NAHB Eye on Housing).
• Property tax was 38% of total state and local tax collections in 2024 (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, 2024).
• In Q4 2023, the property tax share was 38.2%, ahead of general sales tax at 28.1%, individual income tax at 26.4%, and corporate income tax at 7.3% (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, Q4 2023, via NAHB Eye on Housing).
• Total state and local tax revenue was $2.095 trillion in 2024 (Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, 2024).

What the numbers mean: the property tax share of total tax collections (38% in 2024) is measured against total tax revenue only. When measured against broader state and local general revenue (which includes federal transfers and fees), property taxes represent roughly 15% (FY2021), because general revenue is a much larger base. A separate Census-based figure puts property taxes at about 30% of total state and local tax collections in fiscal year 2021 and 28.9% in fiscal year 2023. These share figures differ because of denominator choice (tax-only vs. general revenue) and reporting period (annual survey fiscal year vs. quarterly calendar-year sums); each is labeled below and in the methodology.

Limitation: the $797 billion 2024 total is from the Quarterly Summary, which is more current than the Annual Survey of State and Local Government Finances but is subject to later revision. The Annual Survey remains the authoritative reconciled series and typically lags by one to two years.

Section 2: Effective property tax rate by state (2024)

Effective rates below use the ACS method: median real estate taxes paid divided by median home value for owner-occupied housing in each state, using the 2024 American Community Survey. This measures actual outcomes for the typical homeowner, not statutory assessment rates.

Source for the full table: effective rates computed as median real estate tax paid divided by median home value from the U.S. Census Bureau, American Community Survey, 2024, as compiled in Tax Foundation / Motley Fool analysis. National average effective rate: 0.888% (Source: NAHB Eye on Housing analysis of American Community Survey, 2024).

Highest effective rates in 2024: Illinois (1.96%), New Jersey (1.85%), Connecticut (1.63%), Texas (1.49%), New Hampshire (1.44%), Vermont (1.44%), New York (1.43%), Nebraska (1.43%).

Lowest effective rates in 2024: Hawaii (0.27%), Alabama (0.40%), Arizona (0.42%), Idaho (0.43%), South Carolina (0.46%), Tennessee (0.46%), Nevada (0.48%), Utah (0.48%).

What the numbers mean: high effective rates cluster in states with heavy local reliance on property tax and comparatively lower home values (Illinois, several Midwest and Northeast states). Low effective rates appear in states with either strong assessment limits and low reliance (Hawaii, Alabama, South Carolina) or high home values that shrink the ratio (Hawaii). Rankings shift depending on whether you rank by rate or by dollar bill; the two are not interchangeable.

Limitation: ACS effective rates use medians and can differ from assessment-based statutory rates and from Census aggregate-revenue-based effective rates. Year-over-year comparisons are sensitive to home-value revaluation timing.

Section 3: Median property tax paid by state (2024)

Median dollar bills tell a different story than rates, because home values vary widely.

• New Jersey had the highest median real estate tax bill at $9,435 in 2024 (Source: U.S. Census Bureau, American Community Survey, 2024).
• New Hampshire ($6,909), Connecticut ($6,688), New York ($6,877), Massachusetts ($6,089), California ($6,071), and Illinois ($5,901) were among the highest median bills in 2024 (Source: U.S. Census Bureau, American Community Survey, 2024).
• West Virginia ($1,134), Alabama ($1,064), Arkansas ($1,308), Louisiana ($1,451), and Mississippi ($1,482) were among the lowest median bills in 2024 (Source: U.S. Census Bureau, American Community Survey, 2024).
• The national median real estate tax bill was about $2,937 in 2024 (Source: U.S. Census Bureau, American Community Survey, 2024).

Note on mean vs. median: NAHB’s aggregate/mean measure reports New Jersey’s average annual tax at $9,767 in 2024, higher than the $9,435 median, because means are pulled up by high-value homes. Use the median for typical-homeowner comparisons and the mean for aggregate burden.

Section 4: Per-capita property tax (fiscal year 2021)

Per-capita property tax spreads total collections across all residents, not just homeowners, and reflects both rates and property wealth.

• The District of Columbia had the highest state-and-local property tax per capita at $3,740 in fiscal year 2021 (Source: Tax Foundation analysis of U.S. Census Bureau data, FY2021).
• New Jersey ($3,378), New Hampshire ($3,362), Connecticut ($3,107), New York ($3,025), and Vermont ($2,738) rounded out the highest per-capita collectors in fiscal year 2021 (Source: Tax Foundation analysis of U.S. Census Bureau data, FY2021).

Limitation: the clean per-capita, property-tax-only series by state that is publicly compiled is Census fiscal year 2021. This is older than the 2024 aggregate and ACS figures above and should not be presented as current. Total collections and effective rates in Sections 1-3 are more recent.

Section 5: Property tax as a share of local revenue and school funding

The property tax is far more central to local government than to state government.

• Property taxes were 70.0% of all local government tax collections in fiscal year 2023 (Source: Tax Foundation analysis of U.S. Census Bureau data, FY2023).
• In fiscal year 2021, property taxes were 72.5% of local tax collections (Source: Tax Foundation analysis of U.S. Census Bureau data, FY2021).
• Property taxes were about 30% of total state and local tax collections in fiscal year 2021 and 28.9% in fiscal year 2023 (Source: Tax Foundation analysis of U.S. Census Bureau data, FY2021 and FY2023).
• Property taxes were about 15% of combined state and local general revenue in fiscal year 2021 (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• In 2021, 39% of direct local government spending went to elementary and secondary education, versus less than 1% of direct state spending (Source: Urban Institute analysis of U.S. Census Bureau Survey of State and Local Government Finance, 2021).
• Local governments provided about 44% of K-12 public education revenue, states about 46%, and the federal government about 11% (Source: Urban Institute analysis of U.S. Census Bureau data).
• Roughly 80% of the local share of K-12 education revenue comes from property taxes (Source: Lincoln Institute of Land Policy).

What the numbers mean: because most local revenue for schools flows from property taxes, effective property tax rates and school funding are tightly linked. States that fund schools more heavily at the state level (through sales or income taxes) tend to show lower local property tax reliance.

Section 6: State reliance on property tax (fiscal year 2021)

Reliance measures how dependent a state’s combined state and local governments are on property tax as a revenue source.

• New Hampshire was the most reliant state, with property tax at 33% of combined state and local general revenue in fiscal year 2021 (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• New Jersey (27%), Connecticut (23%), and Maine (23%) followed (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• Seven states drew 20% or more of state and local general revenue from property tax in fiscal year 2021 (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• Eight states drew less than 10%: Alabama, Arkansas, Delaware, Kentucky, Louisiana, New Mexico, Oklahoma, and West Virginia (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).
• Measured against own-source general revenue, property tax reliance ranged from 10% in Alabama to 49% in New Hampshire (Source: Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data, FY2021).

Section 7: City-level effective rates (Lincoln Institute, 2024)

The Lincoln Institute of Land Policy and the Minnesota Center for Fiscal Excellence publish an annual 50-State Property Tax Comparison Study that standardizes effective rates across major cities.

• The study evaluates effective tax rates on homestead, commercial, industrial, and apartment property in 75 large U.S. cities and 50 rural municipalities (one per state) (Source: Lincoln Institute of Land Policy / Minnesota Center for Fiscal Excellence, 50-State Property Tax Comparison Study for Taxes Paid in 2024).
• Across the largest city in each state (53 cities), the average effective tax rate on a median-valued home was 1.22% in 2024 (Source: Lincoln Institute of Land Policy, 2024).
• Detroit, Aurora (Illinois), and Portland (Oregon) had effective rates at least twice the study average in 2024 (Source: Lincoln Institute of Land Policy, 2024).
• Honolulu, Boston, Charleston (South Carolina), Salt Lake City, Denver, Huntsville (Alabama), Nashville, and Boise had rates at half the study average or less in 2024 (Source: Lincoln Institute of Land Policy, 2024).
• The study attributes rate variation to four factors: property tax reliance, property values, local government spending, and how tax systems treat different property classes (Source: Lincoln Institute of Land Policy, 2024).

Original synthesis: three derived insights

Derived insight 1: Rate-vs-bill divergence index (Hawaii paradox)

Logic: compare each state’s rank by effective rate against its rank by median dollar bill using the 2024 ACS table in Section 2. A large gap identifies states where the rate understates or overstates the dollar burden.

• Hawaii ranks lowest on effective rate (0.27%, 50th) yet its median bill ($2,358) is mid-pack, above 12 states including Alabama, Arkansas, and West Virginia. High home values ($887,100 median) convert a very low rate into a moderate dollar bill.
• The inverse case is Illinois: highest rate (1.96%) but a median bill ($5,901) that trails New Jersey, New Hampshire, Connecticut, and New York, because Illinois home values ($301,700) are comparatively low.
• Takeaway: rate rankings and bill rankings are not interchangeable. A state can be a high-rate, moderate-bill state (Illinois) or a low-rate, moderate-bill state (Hawaii).

Inputs: U.S. Census Bureau, American Community Survey 2024 (median tax paid, median home value). Limitation: uses medians; does not capture within-state variation or non-homestead property.

Derived insight 2: Homeowner burden spread (highest vs lowest median bill)

Logic: divide the highest state median bill by the lowest to size the geographic dispersion of the typical homeowner’s property tax.

• New Jersey median bill ($9,435) divided by West Virginia median bill ($1,134) equals 8.3. The typical New Jersey homeowner pays about 8.3 times the property tax of the typical West Virginia homeowner in 2024.
• Against Alabama ($1,064), the ratio is 8.9.
• Takeaway: property tax is one of the most geographically unequal taxes homeowners face, with an order-of-magnitude gap between the top and bottom states.

Inputs: U.S. Census Bureau, American Community Survey 2024. Limitation: does not adjust for income, home value, or cost of living; a burden ratio relative to income would compress the spread.

Derived insight 3: Local dependence concentration ratio

Logic: contrast the property tax’s share of local tax collections (70.0%, FY2023) with its share of combined state and local general revenue (about 15%, FY2021) to quantify how concentrated the tax is at the local level.

• The property tax is roughly 4.7 times more important to local governments’ tax base (70.0%) than to combined state-and-local general revenue (about 15%).
• Layered with school funding data, this shows the transmission channel: about 44% of K-12 revenue is local, roughly 80% of that local share is property tax, so property tax underwrites on the order of a third of local K-12 funding.
• Takeaway: property tax policy is effectively local-government and school-funding policy. State-level reforms that cap or cut property taxes directly pressure school budgets unless backfilled by state aid.

Inputs: Tax Foundation analysis of U.S. Census Bureau data (FY2023 local share); Urban-Brookings Tax Policy Center analysis of U.S. Census Bureau data (FY2021 general-revenue share); Lincoln Institute of Land Policy (school-funding shares). Limitation: the local-share and general-revenue figures are from different fiscal years (2023 vs 2021); the ~4.7x ratio is approximate.

Tables

Property tax share of revenue, by denominator and year

Highest and lowest states, 2024 ACS

Charts to create

• Chart 1: Choropleth map of effective property tax rate by state, 2024. Data: Section 2 table. Source: ACS 2024. Insight: geographic clustering of high rates in the Northeast and Midwest. Citation-worthy because it is the single most-requested property tax visual by journalists and homebuyers.
• Chart 2: Scatterplot of effective rate (x) vs median dollar bill (y) by state, 2024. Data: Section 2 table. Source: ACS 2024. Insight: visualizes the rate-vs-bill divergence (Hawaii and Illinois as outliers). Citation-worthy because it corrects the common conflation of rate and bill.
• Chart 3: Stacked bar of state and local tax collections by source, 2024 (property 38%, sales 28.1%, individual income 26.4%, corporate 7.3%). Source: Census Quarterly Summary. Insight: property tax is the largest single source. Citation-worthy as a top-line revenue-mix reference.
• Chart 4: Time series of total U.S. property tax collections, showing the jump to $797 billion in 2024 (+8.2%). Source: Census Quarterly Summary. Insight: home-price-driven growth. Citation-worthy for trend reporting.
• Chart 5: Bar chart of property tax as a share of state and local general revenue by state, 2021 (New Hampshire 33% to sub-10% states). Source: Urban-Brookings TPC / Census. Insight: reliance dispersion.

Methodology

Source-selection criteria: Tier-1 primary sources were prioritized, specifically the U.S. Census Bureau (Quarterly Summary of State and Local Tax Revenue; American Community Survey; Annual Survey of State and Local Government Finances) and the Lincoln Institute of Land Policy / Minnesota Center for Fiscal Excellence 50-State Property Tax Comparison Study. Tax Foundation and Urban-Brookings Tax Policy Center figures were used only where they directly compile and cite underlying Census or ACS data (Tier-2 compilations of Tier-1 data), and NAHB Eye on Housing was used as a Census-citing secondary source for the ACS-derived national averages.

Inclusion and exclusion rules: every statistic required a year, a geography, and a traceable primary source. Figures that could not be traced to Census, ACS, or the Lincoln Institute were excluded. Realtor-blog and lender-marketing pages were used only to locate ACS tables, never as the primary authority.

Handling conflicting numbers: property-tax “share” figures conflict because of denominator and period differences. The report labels each: 38% is the property share of tax collections only (Census Quarterly, calendar 2024); about 28.9-30% is the property share of tax collections in Census annual fiscal years 2023 and 2021; about 15% is the property share of combined general revenue (FY2021). New Jersey’s median bill ($9,435) and mean bill ($9,767) are both reported and distinguished.

Derived figures: the three synthesis insights use only arithmetic on the sourced 2024 ACS table and the sourced share figures. Ratios (8.3x burden spread; 4.7x local concentration) are shown with their inputs.

Data limitations: the property-tax-only per-capita-by-state series is Census FY2021, older than the 2024 aggregate and ACS data. The 2024 $797 billion total is from the Quarterly Summary and is subject to revision by the reconciled Annual Survey. ACS effective rates are median-based outcome ratios, not statutory rates.

Date of last update: 2026-06-29.

Source quality ranking

Tier 1 (primary government and academic):
– U.S. Census Bureau, Quarterly Summary of State and Local Tax Revenue (total collections, share of collections, 2023-2024).
– U.S. Census Bureau, American Community Survey 2024 (median real estate taxes, median home values, effective rates).
– U.S. Census Bureau, Annual Survey of State and Local Government Finances (underlying source for share and per-capita figures, via TPC and Tax Foundation).
– Lincoln Institute of Land Policy / Minnesota Center for Fiscal Excellence, 50-State Property Tax Comparison Study for Taxes Paid in 2024 (city-level effective rates; school-funding linkage).

Tier 2 (credible compilations of Tier-1 data):
– Tax Foundation (property tax as share of local and total tax collections, FY2021 and FY2023; per-capita FY2021; state effective-rate compilation of ACS).
– Urban-Brookings Tax Policy Center / Urban Institute (property tax as share of general revenue; reliance by state; K-12 spending shares; FY2021).
– NAHB Eye on Housing (national average effective rate and aggregate collections, citing Census).

Tier 3 (used only to locate ACS tables, not as authority): Motley Fool state table (explicitly computed from ACS 2024).

Excluded: WalletHub, Bankrate, PropertyShark, Rocket Mortgage, and similar consumer pages were not used as primary authority because their methodologies and vintages were not consistently traceable to a labeled Census or ACS release.

Citation format

• Source: U.S. Census Bureau, Quarterly Summary of State and Local Taxes, calendar year 2024 (reported March 2025).
• Source: U.S. Census Bureau, American Community Survey, 2024.
• Source: U.S. Census Bureau, Annual Survey of State and Local Government Finances, fiscal year 2021, via Urban-Brookings Tax Policy Center.
• Source: Tax Foundation, Property Taxes by State and County (analysis of U.S. Census Bureau data), fiscal years 2021 and 2023.
• Source: Lincoln Institute of Land Policy and Minnesota Center for Fiscal Excellence, 50-State Property Tax Comparison Study for Taxes Paid in 2024.

Journalist-friendly additions

Most quotable statistics

• U.S. state and local governments collected $797 billion in property taxes in 2024, up 8.2% from 2023 (Census Quarterly Summary).
• Property tax is 38% of all state and local tax collections, the largest single source (Census, 2024).
• Property taxes fund 70.0% of all local government tax collections (Census, FY2023).
• Illinois has the highest effective property tax rate at 1.96%; Hawaii the lowest at 0.27% (ACS, 2024).
• The typical New Jersey homeowner pays about 8.3 times the property tax of the typical West Virginia homeowner ($9,435 vs $1,134; ACS 2024).

Data limitations

• Effective rates are ACS median-based outcome ratios, not statutory assessment rates.
• The property-tax-only per-capita-by-state figures are from fiscal year 2021 and are older than the headline 2024 totals.
• Revenue-share percentages vary by denominator (tax collections vs general revenue) and by fiscal year; each is labeled.
• The 2024 $797 billion total is from the Quarterly Summary and may be revised by the Annual Survey.

Downloadable dataset: recommended fields

state, fips_code, effective_rate_pct_2024, median_real_estate_tax_2024_usd, median_home_value_2024_usd, property_tax_share_of_local_tax_collections_pct, property_tax_share_of_general_revenue_pct_fy2021, property_tax_per_capita_fy2021_usd, reliance_rank_fy2021, data_source, source_year, source_url.

Press summary (about 150 words)

U.S. state and local governments collected $797 billion in property taxes in 2024, an 8.2% jump from 2023 driven by rising home values, according to the U.S. Census Bureau. Property tax remained the single largest source of state and local tax revenue at 38% of all collections, and it funded 70.0% of local government tax collections in fiscal year 2023. Burdens vary enormously by state. Using 2024 American Community Survey data, Illinois carried the highest effective property tax rate at 1.96% of home value and Hawaii the lowest at 0.27%. Measured in dollars, the median New Jersey homeowner paid $9,435, about 8.3 times the roughly $1,134 paid in West Virginia. Because roughly 80% of the local share of K-12 school funding comes from property taxes, property tax policy is effectively school-funding policy in most states. New Hampshire was the most property-tax-reliant state in 2021.

Suggested headlines

• U.S. Property Taxes Hit $797 Billion in 2024, Up 8.2% as Home Values Climb
• The 8x Property Tax Gap: What Homeowners Pay From New Jersey to West Virginia
• Illinois vs Hawaii: The Widest Property Tax Rate Spread in America (2024 Data)
• Why 70% of Local Government Taxes Still Come From Property
• The Hawaii Paradox: Lowest Rate, Far From the Lowest Bill

10 FAQs

1. How much do U.S. governments collect in property taxes? $797 billion in state and local property taxes in 2024 (Census Quarterly Summary).
2. What share of state and local taxes is property tax? 38% in 2024, the largest single source (Census).
3. Which state has the highest property tax rate? Illinois, at 1.96% of home value in 2024 (ACS).
4. Which state has the lowest property tax rate? Hawaii, at 0.27% in 2024 (ACS).
5. Which state has the highest median property tax bill? New Jersey, at $9,435 in 2024 (ACS).
6. Which states have the lowest median bills? Alabama ($1,064) and West Virginia ($1,134) in 2024 (ACS).
7. What is the national average effective property tax rate? About 0.888% of home value in 2024 (NAHB / ACS).
8. How much of local government funding is property tax? 70.0% of local tax collections in fiscal year 2023 (Census).
9. How does property tax fund schools? Local governments supply about 44% of K-12 revenue and roughly 80% of that local share is property tax (Lincoln Institute).
10. Which state relies most on property tax? New Hampshire, at 33% of combined state and local general revenue in 2021 (Urban-Brookings TPC / Census).

Sources

1. U.S. Census Bureau, Quarterly Summary of State and Local Tax Revenue. https://www.census.gov/programs-surveys/qtax.html
2. U.S. Census Bureau, 2023 Quarterly Summary tables (Q4 2023). https://www.census.gov/data/tables/2023/econ/qtax/historical.html
3. NAHB Eye on Housing, “Total Property Tax Collections Hit Record High in 2024” (citing Census Quarterly Summary). https://www.nahb.org/blog/2025/03/state-local-property-tax-collection-2024
4. U.S. Census Bureau, American Community Survey (via NAHB Eye on Housing, “Property Taxes by State, 2024”). https://eyeonhousing.org/2025/11/property-taxes-by-state-2024/
5. Tax Foundation, “Property Taxes by State and County, 2026” (analysis of Census and ACS data). https://taxfoundation.org/data/all/state/property-taxes-by-state-county/
6. Tax Foundation, “Property Taxes by State and County” (2024 ACS median bills; local/total collection shares). https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2024/
7. Motley Fool, “Property Taxes by State in 2026: Highest to Lowest” (state table computed from ACS 2024). https://www.fool.com/research/property-tax-rates-by-state/
8. Lincoln Institute of Land Policy / Minnesota Center for Fiscal Excellence, “50-State Property Tax Comparison Study for Taxes Paid in 2024.” https://www.lincolninst.edu/publications/other/50-state-property-tax-comparison-study-2024/
9. Lincoln Institute of Land Policy, “Introduction to the Property Tax-School Funding Connection.” https://www.lincolninst.edu/centers-initiatives/efficient-equitable-tax-systems/introduction-property-taxschool-funding-connection/
10. Urban-Brookings Tax Policy Center, State and Local Finance Data (analysis of Census Survey of State and Local Government Finance). https://state-local-finance-data.taxpolicycenter.org/
11. Urban Institute, State and Local Expenditures backgrounder. https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/state-and-local-backgrounders/state-and-local-expenditures
12. Tax Foundation, State and Local Tax Collections Per Capita. https://taxfoundation.org/data/all/state/state-local-tax-collections-per-capita/

Related research

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• State & Local Tax Burden Report — 50-state burden rankings and tax mix.
• Sales & Use Tax Report — State rates, revenue, and post-Wayfair nexus.
• Corporate Tax Rate Database — Worldwide statutory and effective rates.