Property taxes can be a particularly sore subject for homeowners, and a new study has revealed Texans are saddled with the seventh-highest property taxes in the nation. WalletHub's annual report, "Property Taxes by State," released February 17, found Texas homeowners will pay a median $4,232 in property taxes in 2026. That's based on the state's median home value of $283,800. Last year, Texans were on the hook for a $4,111 property tax bill based on a median home value of $260,400. And Texas residents are expected to pay $360 more on their property taxes this year than in 2024, when the figure was $3,872. To determine which states have the highest and lowest property tax burdens on residents, WalletHub's experts divided each state's median real estate tax payment by its respective median home price.
The report then used the resulting rates to extrapolate the annual real estate tax that would be paid on a house valued at $332,700, which was the median value for a U.S. home as of 2024 (the year where the latest data was available). All 50 states and the District of Columbia were analyzed. Texas tied with Nebraska as No. 44 in the national ranking of states with the highest property tax burdens for residents right now. Both states have an effective tax rate of 1.49 percent, the data said. Still, the property tax burden in Texas isn't as punishing as New Jersey (No. 51), whose residents are shelling out almost $9,600 on their property taxes this year based on a median home value of $454,400. On the opposite end, Hawaii is the state with the lowest property taxes, with residents spending about $2,239 based on a median home value of $839,100. The annual property taxes Texans would pay on a $332,700 home (the 2024 U.S. median home value) added up to $4,961, the report said. For added context, the U.S. Census Bureau found the average American household pays $3,119 annually on property taxes.
The study did not measure which states were taxed the most when considering income tax, which Texans does not collect, but 42 other states do. Austin renters are also affected by rising property taxes despite not owning their homes, WalletHub said. "While property taxes may seem irrelevant to the 35 percent of households that rent, that assumption misses the mark," the report said. "Whether paid directly or indirectly, nearly everyone bears the cost of property taxes, as they influence rental prices and help fund state and local governments. "Texans should also know that if they believe their home value is not accurately represented by their tax assessor, they can submit a "protest" to have it adjusted. Many homeowners hire an agency every year to argue for a lower appraisal in exchange for a portion of the savings. According to Walltethub, the top 10 states with the lowest property taxes for 2026 are: No. 1 – Hawaii No. 2 – Alabama No. 3 – Nevada No. 4 – Arizona, Colorado, and South Carolina (tied)No. 7 – Idaho No. 8 – Delaware and Tennessee (tied)No. 10 – Utah.
