How Much Did Home Owners in Each State Pay on Property Taxes in 2023?

The average annual real estate taxes paid in 2023 across 86 million owner-occupied homes nationwide was $4,112, according to NAHB analysis of the 2023 American Community Survey. Compared to 2022, every state saw increases in the average amount of real estate taxes paid.
New Jersey continued to pay the highest real estate taxes, with an average of $9,572. That number is 30.6% higher than the second highest amount of $7,329 paid by New York home owners. The largest percentage increase was in Hawaii, up 21.1% from $2,541 to $3,078.
On the other end of the distribution, home owners in Alabama paid the lowest average amount of real estate taxes at $978. The smallest increase was in New Hampshire, up 1.1% from $6,385 to $6,453.
Average Effective Property Tax Rates
Although average annual real estate taxes paid is important, it provides an incomplete picture. Property values vary across states, which explains some, if not most, of the variation across the nation in average annual real estate taxes.
To control for property values and create a more informative state-by-state analysis, NAHB calculates the average effective property tax rate by dividing aggregate real estate taxes paid by aggregate value of owner-occupied housing within each state.
For example, the aggregate real estate taxes paid across the United States were $352.3 billion, with an aggregate value of owner-occupied real estate totaling $38.8 trillion in 2023. Using these two amounts, the average effective property tax rate nationally was $9.09 ($352.3 billion/$38.8 trillion) per $1,000 in home value. This effective rate can be expressed as a percentage of home value or as a dollar amount taxed per $1,000 of a home’s value.
Illinois had the highest effective property tax rate at $18.25 per $1,000 of home value. Hawaii had the largest increase over the year, up 18.8% from 2022.
Additionally, Hawaii had the lowest effective property tax rate at $3.18 per $1,000 of home value. Twenty states saw their effective property tax rates fall between 2022 and 2023. The largest decrease occurred in West Virginia, where it fell 6%, from $5.06 to $4.75 per $1,000.
Jesse Wade, NAHB director of tax and trade policy analysis, provides an example of how taxes can differ within each state in this Eye on Housing article.
Latest from NAHBNow
Jun 30, 2025
Top Builders List Spotlights NAHB MembersIn its latest May/June 2025 issue, Pro Builder unveiled its Top 200 (formerly Housing Giants) report, which ranks the top U.S. home builders by revenue, and looks at the top trends affecting the business of home building.
Jun 27, 2025
Supreme Court Limits Nationwide InjunctionsIn a case that could have far-reaching consequences for NAHB members, the Supreme Court today issued a 6-3 ruling that would limit the use of nationwide universal injunctions. A universal injunction stops the defendant from taking an action against anyone, anywhere.
Latest Economic News
Jun 30, 2025
2024 New Single-Family Starts by Census DivisionDespite persistently high mortgage rates, elevated financing costs for builders, and a shortage of buildable lots, single-family starts rebounded in 2024, following two straight years of declines.
Jun 27, 2025
2025 First Quarter State-Level GDP DataReal gross domestic product (GDP) increased in ten states in the first quarter of 2025 compared to the last quarter of 2024, according to the U.S. Bureau of Economic Analysis (BEA).
Jun 27, 2025
State and Local Property Tax Revenue Grows in the First QuarterIn the first quarter of 2025, state and local governments experienced an increase in property tax revenue growth. On a seasonally adjusted basis, state and local government property tax revenue grew 1.1% over the quarter, according to the Census Bureau’s quarterly summary of state and local tax revenue.