Even homeowners living in states with the lowest property tax rates in the nation are shouldering sky-high bills.
That’s largely because rising 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.
“In many areas, we’ve seen taxes increase not just due to property appreciation, but also because of growing costs to operate local governments and schools or shifts in how tax burdens are distributed,” said Rob Barber, CEO of ATTOM Data Solutions.
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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 taxes. 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, which surveyed property tax rate data from 85 million U.S. single-family homes in the United States.
The effective property tax rates reflect the most recent figures available; the data was released in July 2025.
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, figures vary by county/property value and exclude potential tax breaks.]
Where are property taxes the lowest in 2025?
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 taxes on single-family homes, according to ATTOM. By contrast, the highest effective tax rates were concentrated in the Northeast and Midwest.
Nationwide, the effective property tax rate averaged 0.86% — 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 taxes in 2025.
1. Hawaii
Effective property tax rate: 0.32%
Median value home: $1,280,490
Average tax paid annually: $4,108
Among U.S. states, Hawaii stands out for having the lowest property taxes. However, it also has the highest overall tax burden of all the states mentioned in this list.
Despite Hawaii having the lowest property tax rate, homeowners can expect to pay around $4,100 each year due to the median assessed home value of $1.2 million.
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 2024-25:
- The home exemption will be $120,000 for homeowners under age 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
2. Idaho
Effective property tax rate: 0.40%
Median home value: $611,577
Average tax paid annually: $2,430
The median property tax bill was $2,430 in Idaho. That’s what the average homeowner with a median-price home worth $611,577 could expect to pay at the effective property tax rate of 0.40%.
Retirees in the Gem State could also reduce their property tax bills with a tax break worth between $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 your county assessor's office or call the Tax Commission at 208-334-7736.
3. Delaware
Effective property tax rate 0.41%
Median home value: $512,245
Average tax paid annually: $2,081
Delaware has the third-lowest property tax rate in the U.S., with an effective property tax rate of just 0.41%. A home in the Small Wonder State with a market value of $512,245 would have taxes of about $2,081 annually.
The state also offers property tax breaks for seniors. 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.
4. Arizona
Effective tax rate: 0.41%
Median home value: $571,697
Average tax paid annually: $2,340
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 $2,340 for a home valued at $571,697.
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) from your respective property area.
5. Alabama
Effective property tax rate: 0.42%
Median home value: $305,519
Average tax paid annually: $1,278
Alabama has one of the lowest property tax rates in the country, and at 0.42% its homeowners pay an average tax bill of $1,278 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 $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 age 65 who are'nt 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.
6. Utah
Effective property tax rate: 0.43%
Median home value: $727,896
Average tax paid annually: $3,155
In Utah, the average homeowner will pay $3,155 annually in property taxes. The Beehive State has an effective property tax rate of 0.43%. 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 (PDF):
- 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
7. Tennessee
Effective property tax rate: 0.46%
Median home value: $407,250
Average tax paid annually: $1,856
The average homeowner in Tennessee pays an effective property tax rate of 0.46%. In the Volunteer State, folks with a home valued at the median $407,250 would face a tax bill of $1,856 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.
8. West Virginia
Effective property tax rate: 0.47%
Median home value: $219,671
Average tax paid annually: $1,027
The median property tax bill was slightly more than $1,000 in West Virginia for a typical home worth $219,671. The effective tax rate is 0.47%, contributing to this low tax liability.
The Mountain State also has tax breaks for retirees who are 65 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.
9. Wyoming
Effective property tax rate: 0.48%
Median home value: $711,438
Average tax paid annually: $3,384
Property taxes in Wyoming are still among the lowest in the country, coming in at an estimated 0.48%.
For the average homeowner, that translates to an annual property tax bill of slightly more than $3,300. If that sounds like a high tax burden, the Cowboy State offers several property tax relief programs. These include the following:
- Property tax deferral program (Deadline is November 10 of the year taxes are levied)
- Veteran's property tax exemption program (Must have applied by the fourth Monday in May 2025)
- Property tax refund program (Must have applied by the first Monday in June 2025)
10. Colorado
Effective property tax rate: 0.50%
Median home value: $760,134
Average tax paid annually: $3,788
Colorado rounds out our list for the 10 states that have the lowest property taxes in the U.S. Homeowners in the Centennial State received a median property tax bill of $3,788. The tax bill seems high because the state’s median home value tallied up to $760,134 last year. Still, Coloradoan’s effective property tax rate was 0.50%.
It’s also worth mentioning that Gov. Jared Polis 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.
Colorado also offers a property tax exemption for older adults and their surviving spouses worth 50% of the first $200,000 of your primary residence’s actual value. This tax break is also available to veterans with a disability.
For more on property tax exemptions in Colorado see the full list on the state Division of Property Taxation website.
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