Property taxes are probably one of the least exciting responsibilities to look forward to after purchasing a home.
The amount of property tax you pay will depend on the value of your home, its location and if you’re lucky — the tax breaks your state or city levies on the bill. Some households can expect to pay just hundreds of dollars, while others may be forced to pay thousands each year.
According to ATTOM Data Solutions, the average property tax bill increased 4% nationwide to $4,062 last year. If you’d like to find out if you live in one of the cities with the lowest property tax rates, read on.
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How we found the lowest-ranking property tax cities
The rankings for the cities with the lowest property tax were provided by ATTOM Data Solutions, which surveyed property tax rate data from 84.9 million U.S. single-family homes in the United States.
Note: The effective property tax rates, home values, and corresponding tax bills reflect the most recent figures from 2023. As a result, some of the data points may vary from what you're currently seeing in these or other areas.
Some 225 popular metropolitan areas were evaluated, and here are the five cities with the lowest property tax rates in the country.
1. Daphne-Fairhope, Alabama
Effective property tax rate: 0.27%
Average property tax bill: $1,293
Located in Baldwin County, and the eastern coast of Mobile Bay, the city of Daphne-Fairhope ranks as the metropolitan area with the lowest property tax rate out of the 225 most popular cities ranked by ATTOM. Alabama homeowners with a typical home worth $478,109 can expect a property tax bill of $1,293.
Overall, Alabama is also ranked as one of the 10 states with the lowest property taxes in the country. Residents carry an effective property tax rate of 0.42%. At the median home value of $265,811, the average tax paid per year is $1,101.
Alabama also offers a Regular Homestead Exemption for property owners under age 65, and who are not disabled. Qualifying residents can deduct up to $4,000 in state tax and $2,000 in county tax from the assessed value of their home.
The state also has homestead exemptions for folks over 65, blind, or permanently disabled.
2. Salisbury, Maryland
Effective property tax rate: 0.30%
Average property tax bill: $1,591
Salisbury is the biggest metropolitan area in Maryland and has the second lowest property taxes of the cities ranked on ATTOMS's list. According to 2023 data, for homeowners with a median property worth $524,086, the average property tax bill is $1,591.
The state of Maryland also offers a credit for property tax bills available to homeowners of all ages based on their household income. To qualify for the credit, you must meet the following requirements:
- Your combined household income must not exceed $60,000.
- Your net worth, including the value of the property for which the credit application is made and the cash value of IRAs or qualified retirement plans must not surpass $200,000.
- The applicant must be the legal owner of the property.
3. Honolulu, Hawaii
Effective property tax rate: 0.31%
Average property tax bill: $3,939
Honolulu ranks as the city with the third lowest property tax rate in the United States, however, real estate isn’t as affordable. The average estimated home value was $1.2 million last year, according to ATTOM. That means homeowners in Hawaii paid an average property tax bill of $3,939, nearly $4,000.
Luckily, there are some new property tax breaks rolling out tax year 2024 for Honolulu homeowners:
- Resident homeowners under age 65 will be eligible for a $120,000 home exemption.
- For those 65 and older, the home exemption amount climbs to $160,000. To qualify for the 2024 exemption, you must be 65 or older before June 30 of the preceding tax year.
4. Knoxville, Tennessee
Effective property tax rate: 0.32%
Average property tax bill: $1,349
Knoxville, which is home to just under 900,000 residents in the eastern region of Tennessee has one of the lowest property tax rates in the country, according to ATTOM. The average home is valued at $426,216, and with a property tax rate of 0.32%, most homeowners can expect an average bill of $1,349.
Knox County also offers up to $89 in property relief for older adults aged 65 and above or disabled homeowners. But your total household income cannot exceed $36,370.
Other ways to further lower your property tax bill include:
- Property tax relief for disabled veterans and widowers, up to $487 (at no income limit)
- Property tax freeze for seniors. The State of Tennessee passed legislation allowing counties to ‘freeze’ property tax amounts for homeowners who are 65 or older on or before December 31, 2024, with a combined household income under $60,000. Homes and up to 5 acres can qualify for the tax break.
5. Tuscaloosa, Alabama
Effective property tax rate: 0.32%
Average property tax bill: $860
Alabama is one of the states with the lowest property tax rates, but its western city of Tuscaloosa is even more affordable. The average estimated home price is $266,044, and homeowners there could expect a property tax bill of $860.
As mentioned earlier, the state has a Regular Homestead Exemption for property owners under the age of 65 and exemptions for persons with disabilities.
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