Five States with Fast-Rising Property Taxes

Retirees evaluating where to settle often focus on warm weather, healthcare access, and daily cost of living — but fast‑rising property taxes can quietly erode a fixed‑income budget. Recent assessment data shows that median property tax bill in the U.S. jumped 30% between 2019 and 2024 and highlights several states where tax burdens are climbing faster than anywhere else, reshaping affordability for long‑term homeowners. Below is a closer look at five states experiencing some of the steepest increases.

New Jersey

New Jersey continues to lead the nation not only in high property taxes but also in the fastest rate of increase, with effective rates rising by 0.18 percentage points to 2.47% over the past two years. For a median‑valued home, that now means an annual bill approaching $10,000, driven largely by school‑district funding needs. For retirees, this combination of high baseline taxes and rapid growth can make long‑term budgeting challenging.

Illinois

Illinois follows closely with a 0.14‑point increase, pushing its effective rate to 2.23%. Suburban counties in particular have seen steep reassessments despite population stagnation, leaving many homeowners paying more even as local services struggle to keep pace. Retirees considering Illinois should be aware that tax pressures remain elevated and show no signs of slowing.

Texas

Texas is a special case: although the state implemented a tax‑rate compression mechanism, soaring home valuations in major metros have more than offset it. Effective rates rose 0.12 points, and homeowners in fast‑growing counties like Travis (Austin) are now paying over $6,000 annually on a mid‑priced home. Because Texas has no state income tax, local governments rely heavily on property taxes — a structural factor that keeps upward pressure on homeowner bills.

Connecticut

Connecticut’s effective rate climbed 0.11 points, reaching 2.15%, placing it among the highest‑taxed states in the country. High municipal costs and limited alternative revenue sources continue to push property taxes upward, making Connecticut a tougher fit for retirees seeking predictable long‑term expenses.

New Hampshire

Rounding out the list, New Hampshire saw a recent 0.10‑point increase, bringing its effective rate to 2.09%. Like Texas, New Hampshire lacks a broad‑based income tax, which forces localities to lean heavily on property tax revenue. For retirees, this means that even though the state offers appealing lifestyle benefits, property taxes can rise quickly and unexpectedly.

Final Thoughts

If you’re planning for retirement, it’s not just the current property‑tax rate that matters — it’s the trajectory. States like New Jersey, Illinois, Texas, Connecticut, and New Hampshire are seeing some of the fastest‑rising tax burdens in the country. Keeping an eye on both rates and recent trends can help you choose a retirement destination that supports your financial peace of mind