How do property taxes work?

Real EstateWarren TeamPublished April 25, 2026

Quick answer

Property taxes are local taxes (county, school district, city) based on the assessed value of your home. Rates range from ~0.3% in low-tax states (HI, AL) to 2%+ in high-tax states (NJ, IL, TX). Paid via mortgage escrow or direct payment.

Property tax rates by state range.

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