Property tax is the biggest line item most homeowners never negotiate. States vary from 0.27% (Hawaii) to 2.23% (NJ) in effective rate, and the gap only widens when you factor in local overlays. Texas has no state income tax but runs 1.6% effective property tax. California sits at 0.71% thanks to Proposition 13 — but that freeze only protects long-term owners. Foreign buyers pay the same rate as residents, but may face FIRPTA withholding on sale. Always look at effective rate, not the millage.
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The 50-State Property Tax Map: Where Your Effective Rate Really Lands
Hawaii at 0.27%, New Jersey at 2.23%. On a $500,000 home that's the difference between $1,350 and $11,150 a year — every year, forever. A state-by-state look at effective property tax rates in 2026 and why the headline number is only half the story.