Some states that impose formidable property tax rates—such as New Hampshire and Texas—give residents a few breaks in other major tax categories. For example, Texas taxes property at a significant median rate of 1.81%, but it has no state income tax. The state relies heavily on property taxes to make ends meet.3
Some states such as New Jersey and Illinois impose high taxes across the board, however. New York has the highest combined property, income, and sales taxes, followed by Hawaii—and yet Hawaii made the list of the 10 best for property taxes, notching in at No. 2 at just 0.26%.