Even homeowners living in states with the lowest property tax rates in the nation are shouldering sky-high bills.
That’s largely because a property’s taxable value significantly impacts the dollar amount of your tax bill. So, living in an area where home prices are lower often translates to paying less property taxes even if the tax rate is on the higher side.
Additionally, some states offer property tax breaks that can determine how high your bill is. While you can find property tax breaks in all states, some are worth more than others.
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In the list below, we ranked 10 states with the lowest property tax and illustrate what your tax bill could look like based on the average median price of homes sold in the area. Here’s more of what you need to know.
10 states with the lowest property taxes
The rankings for the states 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. The effective property tax rates reflect the most recent figures available from 2023.
Median home values and property tax bills can vary greatly within each state, and the values and respective tax bills represented in this list are based on the latest data available from ATTOM. [Keep in mind, these figures may differ depending on the county you reside in within the state, and your property’s value. The figures do not include property tax breaks that may be applicable to your state or county.]
That being said, let’s dive into our findings.
The states with the lowest-ranking effective property taxes on single-family homes were located in the South and West United States, according to ATTOM Data Solutions. By contrast, the highest effective tax rates were concentrated in the Northeast and Midwest.
Nationwide, the effective property tax rate averaged 0.87% — that’s more than half the rate of some states featured on this list.
While the states featured have the lowest property tax rates in the country, some have pricey bills due to the market value of the homes sold in the location.
1. Hawaii
Effective property tax rate: 0.31%
Median value home: $1,170,734
Average tax paid annually: $3,685
Kicking off the list, and ranking as the state with the lowest property tax in the country is Hawaii. Though the figure above looks rather staggering, a homeowner with a home priced at the nationwide average of $420,321 would face a property tax bill of just over $1,300 annually.
The Aloha State’s property taxes are unique because they are controlled by the four major counties: Honolulu, Maui, Kauai, and Hawaii. Each county also offers special home exemptions that can offer residents a tax break.
For instance, in Honolulu, most homeowners are eligible for an exemption that reduces their property tax bill. Even folks with a long-term lease can qualify for the tax break. If you qualify, here’s what you can expect to claim for 2024-25:
- The home exemption will be $120,000 for homeowners under the age of 65 and those without a date on file
- Those 65 and older before June 30 of the preceding tax year can claim up to $160,000
Even though Hawaii carries the lowest effective property tax rate out of any state featured on our list, at nearly $4,000 — the tax bill is the highest. That’s mainly due to the high assessed value of some properties in the area which are sold above $1 million.
2. Arizona
Effective tax rate: 0.41%
Median home value: $551,976
Average tax paid annually: $2,288
In the Grand Canyon State, property taxes are an essential source of funding for local government budgets, schools, special taxing districts, and community colleges. The median property tax bill in Arizona is $2,288 for a home valued at $551,976.
Property tax appeals, exemptions, and tax breaks are administered at the county level. If you’re interested in learning more about relief programs that may ease your tax burden you can contact the County Assessor from your respective property area.
3. Alabama
Effective property tax rate: 0.42%
Median home value: $265,811
Average tax paid annually: $1,101
Alabama has one of the lowest property tax rates in the country, and at 0.42% its homeowners pay an average tax bill of $1,101 per year. How much you end up paying will depend on what county you reside in.
For instance, someone in Baldwin County, where the median home value is $211,600, will have an average property tax rate of 0.36% and pay $765 annually. By comparison, a resident of Monroe County with a typical home valued at $100,900 could face a property tax rate of 0.31% and pay $308 each year, a separate analysis from SmartAsset found.
Alabama has a Regular Homestead Exemption, which allows property owners under the age of 65 who are not disabled to deduct up to $4,000 in state tax and $2,000 in county tax from their assessed value of property. Property tax exemptions are also available for persons with disabilities.
4. Delaware
Effective property tax rate 0.43%
Median home value: $451,390
Average tax paid annually: $1,939
Delaware has the fourth lowest property tax rate in the U.S., with an effective property tax rate of just 0.43%. A home in Small Wonder State with a market value of $451,390 would have taxes of about $1,939 annually.
The state also offers property tax breaks for seniors. As Kiplinger reported, homeowners in Delaware over the age of 65 can get a property tax credit of up to $500 against school property taxes. The credit must only be used on a primary residence.
5. Tennessee
Effective property tax rate: 0.44%
Median home value: $385,527
Average tax paid annually: $1,695
Tennessee rounds out the top five states with the lowest property tax rate in the U.S. The average effective property tax rate is just 0.44%. That means that, on average, a home in the Volunteer State with a market value of $385,527 would have taxes of about $1,695 a year.
Veterans with disabilities and their surviving spouses (of any age) may also qualify for a property tax relief program in the state, Kiplinger previously reported.
It’s worth mentioning that Tennessee is also one of the few states with no income tax, so you may face higher taxes elsewhere. In this case, folks will face one of the highest sales tax in the country.
6. Idaho
Effective property tax rate: 0.44%
Median home value: $559,739
Average tax paid annually: $2,479
The median property tax bill was $2,479 in Idaho. That’s what the average homeowner with a median-priced home worth $559,739 could expect to pay at the effective property tax rate of 0.44%.
Retirees in the Gem State could also reduce their property tax bill with a tax break of up to $1,500. To qualify, you must be 65 or older and the property must be a primary residence. Some individuals under 65 may qualify for the reduction under special circumstances.
7. Utah
Effective property tax rate: 0.45%
Median home value: $674,594
Average tax paid annually: $3,011
In Utah, the average homeowner will pay $3,011 annually in property taxes. The Beehive State has an effective property tax rate of 0.45%. Still, its residents have several options to relieve their tax bill. For more information about the five programs that are available to you, contact your county’s auditor or treasurer’s office.
Some property tax relief programs include:
- Veterans with disability exemption program, with a credit up to $505,548
- Active duty property tax exemption
- Exemption for legally blind, with a credit worth up to $11,500
- Indigent abatement or deferral program
- Circuit breaker, offering refunds for certain low-income homeowners and renters
8. Nevada
Effective property tax rate: 0.48%
Median home value: $559,185
Average tax paid annually: $2,660
Nevada is one of the few states with no income tax and it also has some of the lowest property taxes in the country. With an effective tax rate of 0.48%, the average homeowner with a median-priced home of $559,185 would pay about $2,660 annually in property taxes.
Because Nevada is such a tax-friendly state, many residents may have to face competitive or more expensive housing markets. So, that is one factor to consider if you’d like to move to the Silver State.
9. Colorado
Effective property tax rate: 0.48%
Median home value: $711,438
Average tax paid annually: $3,384
Colorado homeowners received a median property tax bill of $3,384. The tax bill seems high because the state’s median home value tallied up to $711,438 last year. Still, Coloradoan’s effective property tax rate was just 0.48%.
It’s also worth mentioning that Gov. Jared Polis recently signed a new property tax bill into law that is anticipated to save homeowners and local businesses more than $1 billion annually. The bipartisan measure will prevent major property tax increases by imposing a statewide cap on annual property tax revenues and lowering assessment rates.
10. West Virginia
Effective property tax rate: 0.49%
Median home value: $202,812
Average tax paid annually: $989
The median property tax bill was under $1,000 in West Virginia, at just $989 annually for a typical home worth $202,812. The effective tax rate is 0.49%, contributing to this low tax liability.
The Mountain State also has tax breaks for retirees who are 65 years of age or older or folks who are permanently disabled. These households can get up to $20,000 of the assessed value from their personal residential property exempt from taxes.
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