States with the highest property taxes on homeowners in 2024

Financial advisors tasked with managing clients’ real estate jealousy about others’ mansions can remind them: With great square footage comes high taxes — especially in these 10 states.

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The rankings below display the 10 states with the highest effective rates for homeowners via an analysis by Palm Paradise Realty Group of a report on 2023 property taxes by real estate data firm ATTOM. 

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Planners from, for example, the No. 1 state on the list, Illinois, often field questions from clients about the annual tax hit on their properties.

“Illinois’ high property taxes are a significant concern for many clients, especially those with substantial real estate holdings,” Bruce Lee, founder and CEO of Chicago- and Scottsdale, Arizona-based Keebeck Wealth Management, said in an email. “This issue frequently arises in annual planning discussions as clients seek strategies to manage this recurring expense without compromising their long-term financial objectives.”

Lee’s firm helps clients “maintain financial flexibility and keep their long-term goals on track” by “proactively addressing property tax concerns,” he added. Trust strategies, a possible move to lower-tax states and regular reviews and assessments aid that process. 

“We consistently monitor property valuations and tax assessments to ensure our clients pay the appropriate amount. Appealing assessments when necessary can lead to substantial savings,” Lee said. “Incorporating property tax liabilities into the broader financial plan ensures that these expenses are anticipated and managed effectively, aligning with the client’s overall wealth management strategy.”

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Federal taxes get much more attention due to their bigger burden and the frequent political maneuvering around any possible changes, but state and local property duties are rising amid inflation and efforts to pay for government programs without hitting income. And they comprise only one figure in an equation that includes sales and excise taxes and other duties.

High property taxes create mixed effects on a state’s homeowners, according to the Palm Paradise analysis.

“On one hand, they fund critical community services like schools and public safety, and good public services can increase the value of your home,” the realty firm’s report said. “On the other hand, these taxes cut into your monthly budget, especially in areas with rising home prices. Homeowners need to think about how to manage these costs in the future; for example, planning for potential higher taxes in their retirement. Taxes can also impact the resale value of your property. If you live in a high-tax area, it’s important to consider the long-term implications of that, especially if you plan to stay for several years or invest in additional properties. To successfully plan your financial future, you need to factor in property taxes when budgeting for homeownership.”

To see the states with the highest effective property tax rates based on the mean amount collected from an average valued home, scroll down the slideshow. And see other coverage of state-level taxes: