States with the Highest Property Taxes

Most of the states in the top 10 are not surprising. New Jersey has been the No. 1 state for property taxes for years, and was just unseated by Illinois in 2025. Illinois is well-known for its many tax issues, budget boondoggles, and several other systemic problems. Connecticut, likewise, is famous for its exceptionally high property values and taxes. Taxes have become such an issue in Ohio that, like Texas, they are looking at eliminating property taxes entirely. California, infamous for its taxes, came in at No. 32.

Texas ranking higher than New York or California may come as a surprise, after all, New York City has some of the most expensive land on Earth and the surrounding counties, such as Nassau, Westchester, and Suffolk, have taxes even higher than the Big Apple. Likewise, California is renowned for its many taxes on income, sales, or various items. However, Texas has been slammed with property taxes for decades. As mentioned above, these are used in lieu of a state income tax, which means property owners must foot the bill for the majority of local funding. The median Texas tax bill is $4,108, which is around $900 more than the national figure. The effective tax rate in Texas is also much higher than the national average of 0.888%, topping out at 1.245%.

Incorrect Assessment is a National Trend

A trend across the nation that has been observed is the disconnect between real home values and what they are assessed or appraised at. We at O’Connor focus on residential property tax in Texas, New York, Illinois, and Georgia, as well as commercial property tax across the country and have observed in each state that the true value of a home or business is often easily eclipsed by its taxable value. This means that property owners are being taxed more than what their real estate could sell for on the open market. For instance, a $350,000 home could be taxed as a $400,000 one, leading to a much higher tax bill. This is textbook unfair valuation and is one of the reasons that property taxes across the entire nation have increased at an unsustainable pace. Because of how common it is, you should always go over your appraisal notice when you receive it, as it is a great first step in understanding if you are being overvalued.

True Market Value vs. Appraised Value

One of the primary reasons for this gap is that appraisal systems lag behind market realities. During the pandemic, there was a huge boom in the buying of homes, especially in suburban areas outside cities like New York or Houston. This demand drove up the cost of homes across the board, but there were other factors as well. Supply chain issues made building materials more expensive, raising costs further. Labor also saw an increase, thanks to loss of life and lockdowns. All of these factors built upon what is commonly believed to be a housing bubble. The result was a large spike in prices across the nation for real estate, both residential and commercial. Between 2022-2024, property taxes were the fastest-growing tax in America, outstripping income and sales levies.

Since then, property values have cooled in some places, while some have heated up. However, taxes are stuck in the past, often still rising, even as tax rates fall. This is due to delayed appraisals still chasing the high from a few years ago. In essence, you are being taxed for what your real estate’s value was in a booming market, instead of what it is now. Your property taxes are based on your assessed value, not the market one, which means you are left holding the bag for the difference. Depending on your location, this could mean that you are being over assessed for tens of thousands of dollars, maybe more in high-dollar counties like Travis, Denton, or Fort Bend. This difference could cost you hundreds or even thousands of dollars.

Consequences of Inaccurate Assessment

While higher property taxes are the main takeaway, having a large disparity between market and assessed value has other consequences. Mortgages and rents are both influenced by taxes, which can make life difficult for people trying to stay in their homes. As taxes increase, you will find yourself paying a higher bill every month. If you rent, the costs are instead passed on to you. When taken to a much greater scale, unequal appraisal can lead to an uneven tax burden across an area or county, where certain property owners pay much more for similar real estate. Appraised values being higher than the real worth of a home are also a key component of gentrification, acting as a threat to traditional families and neighborhoods.

Property Tax Appeals Counter Inaccurate Appraisal

As Texas property taxes continue to rise, many solutions have been put forward or put to use in the last few years. Texas saw a major improvement of the homestead exemption in 2023, with an even larger one in 2025. This was paired with an even larger jump in the homestead exemption for those over 65. However, these tax cuts only affected school taxes, leaving other levies untouched. Also, exemptions are only lowering overvalued taxes, masking the problem. Only property tax appeals can actually address the issue of inaccurate appraisal, by lowering the appraised value to something closer to what the market would pay. A disconnect between your appraised and market value is usually one of the strongest cases for an appeal or protest.

By utilizing a property tax appeal in Texas, you can force your appraisal district to take a real look at your property, getting them to acknowledge what it is actually worth. For simple issues, informal appeals are often enough, and result in the majority of reductions across Texas. Formal appeals to the appraisal review board (ARB) are becoming more popular and necessary, and are the main arbiter for high-dollar counties like Travis and Galveston. These appeals follow informal protests and see you compare your evidence with that of your appraisal district in front of a three-member appraisal review board. If these two routes fail, then you may have the option of litigation, including binding arbitration and judicial appeals.

O’Connor Protects Clients from Unequal Values and Taxation

A well-run appeal can save you hundreds or even thousands of dollars, even more if you are protesting your commercial property. To get the best results, you need plenty of evidence, especially if you want to impress the ARB. To prove unequal valuation, you need photographs, property records, sales records for similar properties, and a list of comparable properties in your neighborhood. If that sounds daunting, then O’Connor is here to help. Based in Houston, we have over 50 years of experience fighting appraisal districts. Being local, we understand the complexities of the Texas system and know how best to approach your unique situation. At the same time, we have national resources, including property sales databases, that can be used to back you up at every level of appeal.

We will analyze your appraisal, gather evidence, compare sales records, and represent you in hearings with the appraiser, the ARB, and beyond. We can even coordinate lawsuits if they are deemed necessary. Our customer success agents will always take time to focus on your case, and our dedicated concierge team will come out and meet you face-to-face. We value having a personal touch and being aggressive for our clients. There are no upfront fees or hidden costs to sign up with us either, as you will only be charged a contingency fee if we can lower your taxes. Appraisal notices will be going out in March, with the appeal deadline being May 15, 2026. Now is the perfect time to get started on your appeal today.