U.S. Property Tax Rates (2026): State-by-State Guide

Property taxes are spiking in 2025-and most homeowners don’t realize how much until it’s too late.

In the next few minutes, you’ll discover:

• Why your 2025 tax bill may be hundreds to thousands higher than last year-even if your home value stayed flat
• Which states are offering new tax relief programs for seniors, veterans, and low-income homeowners
• How to cut your property tax using appeals, exemptions, and insider strategies used by savvy buyers
• A state-by-state cheat sheet showing where rates are rising, where they’re falling, and what to do next

Why this blog matters now:

In 2024, the median property tax bill rose 16%. By mid-2025, it's already trending higher-driven by delayed reassessments, rising millage rates, and state budget shortfalls. But hidden inside the mess are real savings opportunities-if you know where to look.

Whether you’re a first-time buyer or long-time owner, this is your moment to fight back against rising housing costs-and claim the relief you deserve.

Property taxes are rising mainly due to stronger market values and local budget needs. Here’s what’s fueling the increase:

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Rising Home Values & Reassessments: Property taxes are ad valorem-tied to property value. As values rise, assessors update market and assessed values (annually or every few years), leading to higher tax bills.

• Inflation Effects: In states like Michigan, taxable value growth is capped at inflation or 5%-whichever is lower-directly impacting tax calculations.

• Mill Rate & Local Budget Needs: Local governments adjust mill rates to fund schools, safety, and public services. Tax bill = assessed value × tax rate.

• Policy Changes: State and local policies can shift tax burdens. Example: Texas passed 2025 amendments aimed at reducing taxes for homeowners and businesses.

A key trend involves major state-level efforts to reduce property tax burdens through exemptions:

• Texas Tax Relief: Voters in Texas approved a constitutional amendment on November 4, 2025, to raise the state's homestead exemption used for calculating school property taxes from 100,000 to 140,000.
• New Jersey Deadlines: The filing window for several New Jersey property tax relief programmes (including ANCHOR and Senior Freeze) closed on October 31, 2025.

States are spending more money to help homeowners lower their property taxes.

• Bigger Exemptions: Texas raised the homestead exemption from $100,000 to $140,000, so more of a home’s value is protected from school taxes.

• Guaranteed Relief: Texas set aside $51 billion for property tax cuts over two years. Because this is now part of the state constitution, the tax relief must continue-even if the economy slows-meaning the state would have to cut other spending first.

• More Help Coming: New Jersey’s Stay NJ property tax credits will start being paid out quarterly in 2026, giving homeowners ongoing relief.

The assessed value of your property, which is used to calculate your property tax bill, is based on the dollar amount assigned to your home for tax purposes. If this value is incorrect, you may be overpaying.

1. Get Your Property Card – Download it from your assessor’s office to see the data used to value your home.
2. Check for Errors – Look for wrong square footage, missing/extra features, or outdated details that raise your value.
3. Compare With Similar Homes – If comparable homes nearby are assessed lower, your home may be overvalued.
4. Document Issues – Gather proof of defects or location drawbacks (noise, traffic, industrial sites) that reduce your property’s true value.

To better understand the difference between what your home is worth and how it’s assessed for taxes, check out our breakdown of appraisal vs. assessment.

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If you believe your bill should be lower, you have the option to appeal the assessment.

• Allow Assessor Access: If the assessor schedules a visit, allow them access to your home. If you do not grant full access, some municipalities may automatically assign the highest assessed value possible for that type of property, making it difficult to dispute the evaluation later.
• Accompany the Assessor: Walk through the home with the assessor to point out both the good points and any deficiencies, such as outdated appliances or cracks in the ceiling, to ensure you receive the fairest possible valuation.
• Gather Strong Evidence: Comparable property assessments are one of the most important tools for an appeal. The best evidence against an improper assessment is a professional appraisal of your home. Written repair estimates and photographs of structural damage are also helpful.
• File with the Local Board of Review: Put all your information, including noted discrepancies and requested deductions, into a letter form to present to your local Board of Review. You must appeal to the local Board of Review before you can appeal to a higher body.

The mill rate, or tax rate, is set by the municipality based on its budget needs for services like education, fire departments, and law enforcement.

The appeal process reduces the assessed value of the home, not the effective tax rate (mill rate). Therefore, the most direct local opportunity to lessen the impact of the mill rate is to reduce the assessed value it is applied to, primarily through maximizing exemptions. For instance, a homestead exemption reduces the home's taxable value, which translates directly into a lower tax bill when multiplied by the local mill rate.

Homeowners should exercise due diligence and avoid common pitfalls to ensure they receive property tax reductions.

• Missing Filing Deadlines: One of the biggest pitfalls is not filing homestead exemption paperwork before the county’s cutoff, such as the common deadline of April 30th in Texas counties. Missing the deadline often means waiting a full year to apply again. The filing window for New Jersey property tax relief programs closed on October 31, 2025.
• Failing to Claim Additional Exemptions: Seniors, disabled persons, and veterans have access to special exemptions; ignoring these options means missing out on extra savings.
• Using the Wrong Address: The homestead exemption typically applies strictly to the homeowner’s primary residence. Applying for a vacation property or rental home will likely result in denial.
• Not Updating After Moving: If you move, you must file a new exemption application for your new property, as exemptions do not automatically transfer.

This section gives a quick, scan-friendly look at how states are shifting in 2025-where tax pressures are highest, where relief is strongest, and which states are stepping up for seniors in particular.

Some states are seeing accelerated tax pressure from reassessments, rising millage rates, and fast-moving home values. Based on current 2024–2025 patterns:

• Texas – Rapid appreciation + higher local levies = sharp year-over-year jumps.

• New Jersey – Among the highest average tax bills; rising assessed values compound the pain.

• Colorado – Housing demand and reassessment cycles pushing taxable values higher.

• Georgia – School district millage adjustments and assessment growth driving notable increases.

• New York – Rising school district budgets and reassessment updates increasing homeowner burden.

Several states are expanding exemptions, adopting caps, or implementing major relief bills:

• Texas – SB-4 proposes a historic increase to the homestead exemption; SB-23 boosts senior and disabled exemptions.

• Florida – Expanded homestead + senior exemptions; changes tied to inflation offer ongoing protection.

• Georgia – Higher homestead exemption thresholds for 2025.

• Illinois (Local) – Counties like Cook expanding senior/disabled exemptions.

• Montana – One-time homeowner rebate (~$400) to offset 2025 bills.

Older homeowners benefit most in states with freezes, larger exemption amounts, or inflation-indexed protection:

• Florida – Age-65+ exemptions with income-based criteria; generous homestead structure.
• Georgia – Senior value caps and homestead benefits that blunt assessment spikes.
• Illinois – Senior freeze programs and expanded exemptions in several counties.
• Texas – Proposed SB-23 could dramatically reduce or even eliminate school taxes for many seniors.
• Hawaii – Strong home exemptions, with enhanced levels for homeowners over 65.

A quick look at how rates and assessments interact across states in 2025:

• High-rate states (NJ, IL, parts of NY): Mill rates + rising assessments create compounding tax pressure.
• Low-rate states (HI, AL, DE): Rates are modest, but inflation + reassessments still raise bills.
• Cap-protected states (CA, FL, CO): Laws limit assessment growth-until ownership changes or local budgets force millage adjustments.
• Revaluation-heavy states (TX, CO, GA): Rapid “catch-up” assessments are causing some of the largest one-year jumps.

Texas voters approved several constitutional amendments in November 2025 aimed at reducing tax burdens:

• Homestead Exemption Raised: Increased from $100,000 → $140,000 for school taxes.

• Bigger Senior & Disability Savings: Added cuts for homeowners 65+ or with disabilities.

• Business Inventory Break: Up to $125,000 of inventory is now exempt from school, city, and county taxes, with the state covering the cost.

• Homestead Exemptions: Reduce taxable value on a primary residence; rules vary by state.

• Senior Relief: Programs like NJ Senior Freeze, CA Property Tax Postponement, and enhanced senior exemptions in Texas.

• Veteran Benefits: Disabled veterans may qualify for large reductions or full exemptions.

• Other Relief: Options exist for low-income owners, disabled individuals, and agricultural properties.

• Texas Homestead: Must occupy the home as your primary residence on Jan 1; filing deadlines often fall around April 30.

• New Jersey Programs (ANCHOR, Senior Freeze): Filing deadline was Oct 31, 2025; Stay NJ payments begin in 2026.

• California PTP: Application window runs Oct 1, 2025 – Feb 10, 2026.

• Assessment Appeals: Strict timelines-e.g., Michigan appeals to the Tax Tribunal must be filed by June 30 if the Board of Review decision is challenged.

A homeowner can save a lot if they fix mistakes in their assessment. In this example, the owner found several errors and issues that added up to $31,535 in value:

• Wrong info: Missing fireplace, missing tile bath, and extra square footage that didn’t exist = $16,535

• Home damage: Cracked foundation and exterior wall = $10,000

• Bad location: Living next to a noisy, smelly junkyard = $5,000

Altogether, the home’s value was reduced by $31,535, which would lower the assessed value and cut the owner’s property tax bill.

Older adults are frequently eligible for enhanced savings. In Texas, those over 65 receive bigger property tax cuts following the November 2025 constitutional amendments.

• A Texas retiree (Margaret, 68) who claimed the basic homestead exemption plus the specific senior citizen additional exemption reduced her property taxes by approximately $1,200 annually, providing substantial relief for those on a fixed income.

For new homeowners, the homestead exemption is usually the most helpful benefit.

• Example: A young couple buying their first home in Texas (Emily and Jake) applied for the basic homestead exemption. It lowered their taxable home value by $25,000, saving them about $700 in property taxes in their first year.

If they also qualify as lower-income buyers and receive a Mortgage Credit Certificate, they can claim the Mortgage Interest Credit on their federal taxes for even more savings.

Even if the tax rate goes up, homeowners can still save money by lowering the value that gets taxed.

• In Texas, the new constitutional amendment raised the homestead exemption to $140,000.

• With this higher exemption, a typical homeowner with a $302,000 home would have saved about $490 on school taxes last year - even though the tax rate stayed high.