10 States With the Lowest Property Tax Rates in 2026
While the national property tax average is climbing, homeowners in these states pay less than 0.53%. Compare your current tax bill against the 2026 rankings.
Even homeowners in states with the lowest property tax rates in the nation are experiencing higher rates as of late.
That's largely because elevated home values often translate to a higher property tax burden, no matter where you live. But home appreciation isn't solely to blame for your high tax bill.
"Higher tax bills combined with declining home values led to an increase in effective tax rates, underscoring the role of local government costs and shifting tax policies," said Rob Barber, CEO of ATTOM Data Solutions.
Luckily, living in a state with low property taxes can help ease your burden.
Property tax breaks can also help homeowners lower their tax bills further. While these breaks are available nationwide, some states provide more substantial benefits than others.
The Trump administration also enacted new tax legislation that might impact homeowners and their potential tax savings.
Read on to see if you reside in one of the 10 states with the lowest property tax rates. 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 rates were provided by real estate data provider PropertyShark, which extracted information from the U.S. Census Bureau's latest 5-year estimates.
The effective property tax rates reflect the most recent figures available. If any effective property tax rates were the same, Kiplinger used the median home value as a secondary metric for this ranking.
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However, these figures can vary greatly within each state, so check your local listings for the most up-to-date information.
Where are property taxes the lowest in 2026?
If you're a homeowner or potential homebuyer in the South and West of the United States, you're in luck.
These regions generally have the lowest-ranking effective property tax rates on homes, according to PropertyShark. By contrast, the highest effective tax rates were concentrated in the Northeast and Midwest.
Nationwide, the effective property tax rate averaged 0.90% — that's more than half the rate of some states featured on this list.
That being said, let's dive into the 10 states with the lowest property tax rates in 2026.
1. Hawaii
Effective property tax rate: 0.27%
Median home value: $839,100
Median property tax paid annually: $2,239
Among U.S. states, Hawaii stands out for having the lowest property tax rates. However, because the median assessed home value sits at a staggering $839,100, the actual tax burden can feel much higher than the rate implies.
Due to robust local tax breaks, many long-term residents pay a median annual bill of $2,239. The Aloha State's property taxes are unique because they're 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 bills. 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 2026-27:
- The home exemption will be $120,000 for homeowners age 64 and under 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
2. Alabama
Effective property tax rate: 0.38%
Median home value: $209,900
Median property tax paid annually: $788
Alabama has one of the lowest property tax rates in the country, and at 0.38%, its homeowners pay an average tax bill of $788 per year. How much you pay will depend on the county in which you reside.
For instance, someone in Baldwin County, where the median home value is $492,239, will have an average property tax rate of 0.35% and pay $1,706 annually, according to data in the most recent ATTOM report.
Alabama has a Regular Homestead Exemption, which allows property owners under age 65 who aren't 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 people with disabilities.
3. Nevada
Effective property tax rate: 0.47%
Median home value: $435,400
Median property tax paid annually: $2,027
Nevada ranks No. 3 on our list with the lowest property taxes in the U.S. Homeowners in the Silver State receive a median property tax bill of $2,027. The tax bill might seem high compared with others on this list because the state's median home value tallies up to $435,400, according to the U.S. Census Bureau. Still, Nevada's effective property tax rate is 0.47%.
It's also worth mentioning that Nevada offers disabled veterans and their surviving spouses property tax exemptions of up to $35,400 (adjusted for inflation) on a property's assessed value.
For more on property tax exemptions in Nevada, see the state's legislative website (PDF).
4. South Carolina
Effective property tax rate: 0.48%
Median home value: $259,000
Median property tax paid annually: $1,251
South Carolina homeowners pay a median property tax bill of about $1,250, which is remarkably low compared with the national average. Additionally, the median home value is just below $260,000, in part thanks to the low effective property tax rate of 0.48%.
There might be more good news for residents of The Palmetto State. If you own and occupy your home as your primary residence, the state's property tax assessment ratio drops from 6% to 4%, effectively removing school operating millage from your tax bill.
Homeowners 65 and older, as well as those who are totally and permanently disabled, might be eligible for a property tax exemption on the first $75,000 of the fair market value of their residence.
Related: 10 Cheapest Places to Live in South Carolina
5. Arizona
Effective tax rate: 0.48%
Median home value: $394,500
Median property tax paid annually: $1,879
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 $1,879 for a home valued at about $395,000.
Property tax appeals, exemptions and tax breaks are administered at the county level. If you're interested in learning more about relief programs (PDF) that might ease your tax burden, you can contact the county assessor (PDF) for your respective property area.
Related: 10 Cheapest Places to Live in Arizona
6. Colorado
Effective property tax rate: 0.48%
Median home value: $539,400
Median property tax paid annually: $2,602
Colorado median home values are among the more costly on this list, at barely below $540,000. Median property tax bills are relatively low, however, at around $2,600, due to the effective property tax rate of 0.48%.
Eligible retirees who are 65 or older have several property tax relief programs to choose from, including:
- The "senior citizen" property tax exemption, which exempts 50% of the first $200,000 of the actual value of a primary residence
- The property tax deferral program, which allows you to defer property taxes through a low-interest loan issued by the state of Colorado
- The property tax/rent/heat (PTC) rebate, worth up to $1,178, helps older homeowners pay property taxes, rent, or heating bills
Related: 10 Cheapest Places to Live in Colorado
7. Idaho
Effective property tax rate: 0.49%
Median home value: $418,600
Median property tax paid annually: $2,038
Idaho features a remarkably low effective property tax rate of 0.49%, according to PropertyShark real estate data. While local tax bills vary widely depending on county assessments, statewide aggregator data show a median home value of $418,600 paired with a typical annual property tax bill of $2,038.
Retirees in the Gem State could also reduce their property tax bills with a tax break worth from $250 to $1,500. To qualify, you must be 65 or older, and the property must be a primary residence. Some individuals under 65 might qualify for the reduction under special circumstances.
The property tax reduction program (PDF) is managed by county assessors and Idaho's Tax Commission. If you have more questions, reach out to your county assessor's office or call the Tax Commission at 208-334-7736.
8. Tennessee
Effective property tax rate: 0.50%
Median home value: $286,700
Median property tax paid annually: $1,442
The average homeowner in Tennessee pays an effective property tax rate of 0.50%. In the Volunteer State, folks with a home valued at the median of $286,700 would face a tax bill of $1,442 a year.
Veterans with disabilities and their surviving spouses (of any age) might 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 might face higher taxes elsewhere. In this case, folks will face one of the highest sales tax rates in the country.
Related: 10 Cheapest Places to Live in Tennessee
9. Delaware
Effective property tax rate: 0.50%
Median home value: $352,000
Median property tax paid annually: $1,768
Delaware has the ninth-lowest property tax rate in the U.S., with an effective property tax rate of 0.50%. A home in the Small Wonder State with a market value of $352,000 would have taxes of about $1,768 annually.
The state also offers property tax breaks for older adults. As Kiplinger reported, homeowners in Delaware age 65 and older can get a property tax credit of up to $500 against school property taxes. The credit must only be used on a primary residence.
10. Utah
Effective property tax rate: 0.52%
Median home value: $489,400
Median property tax paid annually: $2,525
In Utah, the average homeowner will pay $2,525 annually in property taxes. The Beehive State has an effective property tax rate of 0.52%. Still, its residents have several options to relieve their tax bills. For more information about the five programs 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 $535,459
- Active-duty property tax exemption
- Exemption for the 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
More to Know
