Highest property taxes in the U.S.: New York and California are not in the top ten.

The average property tax bill can differ by as much as $8,000 for a home of the same value in different U.S. states, a new study shows.

According to a Tax Foundation analysis based on the most recent Census Bureau data, New Jersey's average effective tax rate is 2.23 percent, the highest among the 50 states and the District of Columbia. The state of Hawaii has the lowest tax bracket at 0.32%.

For a home valued at $416,100 (the median value in the U.S.), New Jersey owners would have to pay $9,279 in property taxes. While in Hawaii, the tax bill would be just $1,332.

Median value of effective rate' 's property tax rate for all states and the District of Columbia is 0.91%. Only New Jersey and Illinois have property tax rates above 2%.

New Jersey emphasizes local control of public services, especially education. The cost of education in this state is among the highest in the nation, and it is funded largely by property taxes.

In turn, Illinois has more local governments than any other state, according to the State Legislative Directory.

In Hawaii, government is more centralized at' 's state level and relies more on tourism rather than property taxes to fund government services. As a result, property taxes are the lowest in the nation. However, despite the low tax barrier, Hawaii remains the most expensive state to buy a home, according to a recent LendingTree study.

Interestingly, states with low property taxes, such as New Hampshire and Texas, have the highest effective property tax rates. Because these states do not levy income taxes, they rely on property taxes to fund a greater share of government services.

For the purposes of this study, the average effective property tax rate reflects' 'the average level of taxes paid relative to the value of the home for owner occupants only. The rate was calculated based on 2021 U.S. Census data, the most recent currently available.