10 States with Highest Property Tax in 2025 reveal where homeowners face the biggest tax burdens in the United States. While property taxes are a major source of funding for schools, public safety, and infrastructure, they can also make housing far more expensive. For families, retirees, and first-time buyers, understanding which states carry the highest property tax rates is essential when considering relocation or long-term investments.
In 2025, several states continue to dominate the list due to high property values, strong demand for local services, and funding models that rely heavily on real estate taxes. Here are the top 10 states with the highest property tax burdens this year.
1. New Jersey
New Jersey consistently ranks at the very top. In 2025, homeowners here still face the highest average property tax rates in the nation. With densely populated suburbs and expensive housing markets near New York City and Philadelphia, property taxes average above 2% of home value. Despite the cost, New Jersey residents benefit from highly rated schools and public services.
2. Illinois
Illinois remains one of the toughest states for property owners. Property tax rates hover around 2% in many counties, driven by school funding needs and pension obligations. Suburban Chicago areas, in particular, see some of the steepest bills, making Illinois a challenging place for budget-conscious homeowners.
3. New Hampshire
Unlike many states, New Hampshire has no state income or sales tax, so property taxes are the main source of revenue. This leaves homeowners with high property tax bills that often exceed 1.8% of home values. While residents benefit from excellent public schools and services, the property tax burden is significant.
4. Connecticut
Connecticut has high property taxes, especially in affluent areas and cities with strong school districts. Average rates often top 1.7%. While the state offers a high quality of life, excellent healthcare, and proximity to New York City and Boston, the property tax burden remains a downside for many families.
5. Vermont
Vermont’s picturesque landscapes and rural lifestyle come at a price. Property taxes here are high because the state relies heavily on them to fund education. Rates average around 1.7%, making it one of the top states with the heaviest property tax load in 2025.
6. Wisconsin
Wisconsin’s property tax rates average between 1.6% and 1.8%, depending on the county. The state places heavy emphasis on funding schools and local governments through property taxes. While Wisconsin offers a relatively affordable cost of living overall, property taxes are a significant expense for homeowners.
7. Texas
Texas is unique because it has no state income tax, which means local governments depend heavily on property taxes to fund services. In 2025, property taxes remain high, averaging around 1.6%. With rapidly rising home prices in cities like Austin, Dallas, and Houston, tax bills have grown even larger for many families.
8. Nebraska
Nebraska ranks high due to its reliance on property taxes to fund education and rural services. Rates average between 1.5% and 1.6% of home values. While the state offers affordable housing compared to coastal markets, property taxes still weigh heavily on homeowners.
9. New York
New York property taxes vary widely, but in suburban counties outside New York City—like Westchester, Nassau, and Rockland—they are among the highest in the country. Average property tax rates in these areas exceed 2%. While NYC itself has lower effective property tax rates, high property values drive tax bills higher overall.
10. Rhode Island
Rounding out the list is Rhode Island. Though the smallest state in the U.S., it has above-average property taxes, averaging around 1.5%. With housing costs continuing to rise in New England, property taxes in Rhode Island remain a significant part of homeownership expenses in 2025.
Final Thoughts On States with Highest Property Tax
The 10 States with Highest Property Tax in 2025 demonstrate how tax burdens can vary widely depending on state policies and funding priorities. States without income or sales taxes—like New Hampshire and Texas—often shift costs to property owners. Meanwhile, states with strong education and infrastructure investments, like New Jersey and Illinois, keep property tax bills at the top of the national rankings.
For anyone planning a move, understanding these costs is crucial. While high property taxes may support quality schools and services, they also make long-term homeownership more expensive. Comparing states and weighing the balance between affordability and quality of life can help families and retirees make informed decisions.
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