Skyrocketing home prices are bad enough, but if you really want to get ahead financially , think twice about moving to a state with high property taxes.
Yes, those taxes can provide high-quality amenities such as good roads, schools, and fire and police departments. But they can also deprive you of the money you need for a stress-free retirement .
Before searching for your next home, check out the states you may want to avoid due to their high property taxes.
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10. Rhode Island
Property tax rate: 1.39%
Skyrocketing home costs in Rhode Island have led to a potential increase in property taxes for many homeowners since taxes are based on the value of those properties.
But there is some good news: Due to the surge in housing costs, some communities in the state have decided to hold off on their annual re-evaluations of property values to see how prices change in the next year.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 9. Nebraska
Property tax rate: 1.54%
Omaha has higher property tax rates than many large cities in the U.S. Taxes on agricultural lands in the state have also surged, and many farmers complain that they struggle to pay the taxes.
8. Wisconsin
Property tax rate: 1.59%
Milwaukee's effective property tax rate is 2.53%, and the state is known for using property taxes heavily to pay for services.
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7. Texas
Property tax rate: 1.63%
Texas is one of nine states with no state income tax. However, that fact also means Texans may rely more heavily on property taxes than other places to cover community needs.
Texas cities such as El Paso, Fort Worth, San Antonio, and Arlington are known for their high property taxes.
6. New York
Property tax rate: 1.64%
New York City's approach to taxing homes is legendarily complicated, and many citizens there are crying out for reform. But even in other parts of New York, property taxes raise the ire of many homeowners.
5. Vermont
Property tax rate: 1.78%
In 2024, residents of Burlington, Vermont, were shocked by how much their property taxes increased following property reappraisals there. Those who own single-family homes saw their tax obligation spike by 11%.
Get Out of Debt for Good: Try these 6 clever ways to crush your debt 4. New Hampshire
Property tax rate: 1.89%
New Hampshire may rely more heavily on property taxes than other taxes, which could contribute to its high rate. The state has no income or sales tax, instead relying on property taxes to cover costs.
3. Connecticut
Property tax rate: 2.00%
Connecticut is known for being among the most expensive states to live in. The cost of housing, utilities, and consumer goods are high
The state also has a high property tax rate. But although things may cost more, many residents have a higher-than-average income, which may offset the taxes somewhat.
2. Illinois
Property tax rate: 2.11%
Illinois has several smaller metro areas known for high property taxes, including Rockford (3.12%), Peoria (2.69%), and Joliet (2.63%).
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1. New Jersey
Property tax rate: 2.33%
New Jersey has higher property values than many other states, which can lead to high property tax bills.
Tax rates themselves are also high. Elizabeth and Paterson, both near New York City, have some of the highest property tax rates.
Bottom line
There are plenty of great places to live, even in states with high property taxes. For some people, moving to a high-tax state is worthwhile.
But all things being equal, it’s better to find ways to avoid wasting money than spend it on taxes.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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