Residents in these states paid some of the lowest property tax bills in the nation, but that doesn’t necessarily mean they paid the lowest tax rates. That’s largely because a property’s taxable value has a significant impact on the dollar amount of your tax bill. So, living in an area where home prices are lower often translates to paying less property taxes.
Property tax breaks offered by each state can also affect how high your tax bill is. And while you can find property tax breaks in all states, some are worth more than others.
Lowest property tax state rankings
Rankings were determined based on property tax bills rather than property tax rates, given that a low property tax rate can still result in a high tax bill and vice versa. Tax bill amounts and median home values are constantly changing as the market fluctuates and states implement new laws. This ranking will be updated accordingly and as soon as practicable after new data is released.
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[Median home values and property taxes paid are based on data reported by the U.S. Census Bureau and presented by PropertyShark. Values reflect figures from the most recent data available. Median home values and property tax bills can vary greatly within each state. Additional criteria to qualify for each state’s property tax breaks may apply.]
Oklahoma
Median Property Tax: $1,351
Oklahoma homeowners received a median property tax bill of $1,351. Property tax bills were low, partly due to the state’s median home value of less than $160,000. But Oklahoma’s property tax breaks likely also played a role.
Disabled veterans are 100% tax-exempt from paying property taxes. Other tax breaks are available to eligible homeowners, too, such as a property tax freeze and a double homestead exemption.
Additionally, the assessment property tax cap in Oklahoma limits the tax-assed value of primary residents to a 3% increase. This helps keep property taxes lower when real estate market values increase.
Kentucky
Median Property Tax: $1,320
Kentucky’s median tax bill was slightly lower than Oklahoma's, at $1,320. The maximum homestead exemption in Kentucky is $46,350 for 2023 and 2024. That tax break is available to homeowners age 65 and older and homeowners with “total and permanent” disabilities.
Indiana
Median Property Tax: $1,308
Indiana’s median home value was higher than Kentucky’s, but the median tax bill was lower by $12. Indiana offers a homestead deduction. The state previously offered a mortgage deduction, but that was repealed and is not available for the 2023 property assessment year.
Tennessee
Median Property Tax: $1,270
Kiplinger ranked Tennessee as one of the best states for middle-class families, and low property tax bills, which fell below $1,300, were a major determining factor. The median home value in Tennessee reached nearly $200,000. The state offers a property tax voucher to eligible homeowners 65 and older. Tennessee homeowners age 65 and older may also apply to have the taxable value of their property frozen. However, income requirements apply.
Mississippi
Median Property Tax: $1,052
Mississippi takes the number five spot for the lowest property tax bill, which is part of the reason the Magnolia State is ranked by Kiplinger as the most tax-friendly state for retirees. But Mississippi wouldn’t make the top 10 lowest for tax rates. That’s because the median home value in Mississippi was just $133,000. So, the higher rate still results in a low property tax bill.
Mississippi’s homestead exemption plays a role, but the exemption is worth $7,500, which is less than the exemption offered by most other states on this list.
South Carolina
Median Property Tax: $1,024
South Carolina is a popular retirement state, and low property taxes are probably part of the reason. The median property tax bill was just over $1,000, and the median home value was just under $182,000. Additionally, South Carolina has a homestead exemption worth up to $50,000. To qualify, homeowners must be at least 65. Surviving spouses that are at least 50 years of age may also qualify if their spouse was at least 65 at the time of death.
Louisiana
Median Property Tax: $983
The median property tax bill was under $1,000 in Louisiana. A low property tax rate and a lower median home value of $174,000 contributed to this low tax liability. The state’s homestead exemption, which is worth up to $75,000, also helps reduce how much homeowners pay.
Arkansas
Median Property Tax: $878
The median property tax bill was even lower in Arkansas, coming in at under $900. However, the median home value was just over $142,000, so this low property tax bill isn’t a surprise. Arkansas offers a property tax credit, which was recently increased from $375 to $425. The savings are credited to eligible homeowners’ property tax bills.
West Virginia
Median Property Tax: $756
West Virginia takes second place for having the lowest property tax bill. Median real estate taxes paid were just over $750, and the median home value was among the lowest in the nation, at $128,800. Homeowners age 65 and older may qualify for a homestead exemption of up to $20,000.
Alabama
Median Property Tax: $646
At only $646 per year, Alabama was the state with the lowest property tax bill. Some homeowners qualify for a 100% property tax exemption, such as those with permanent and total disabilities. Homeowners age 65 and older may also qualify for a 100% exemption, but income requirements apply.
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