Property Tax Rates By State
Property taxes vary by state due to different legislative choices, and they can be a crucial consideration for those seeking to minimize their homeownership expenses.
High property taxes can cost a homeowner thousands of dollars annually, while low taxes let you save money for other expenses, like home renovations. As such, picking properties with the lowest property tax rates can improve your cash flow, whether you are a homeowner or an investor.
This high-value blog post provides a table of states with the lowest property taxes based on the “effective” property tax rate, which means it factors average home values with average property taxes paid. States with a higher property tax rate may still allow buyers to enjoy a lower bill if median home values are low.
We have also ranked the lowest to highest property tax rates by state in 2024, which allows property owners to devise strategies for tax relief.
It’s important to note that while most U.S. homeowners pay property taxes, some properties could enjoy property tax exemptions for various reasons (e.g., homestead exemptions and 100 percent disabled veteran exemptions).
Okay, let’s explore the property taxes by state ranked best to worst this year!
States with the Lowest Property Taxes Overview
State and local governments levy property tax to pay for necessary public services, including schools, fire departments, and infrastructure. In general, your state property taxes will pay for roads and public infrastructure, while taxes paid to the local government fund schools and other local needs, which counties pay for themselves.
Your property tax bill is based on your home’s assessed value, a percentage of the property value. As median property values rise, so do median property taxes paid in a given area, though there is typically a cap on how much your property taxes can be raised each year.
Property tax is only paid on real property, such as houses and land, rather than personal property, like cars or RVs.
Low property taxes can save you thousands of dollars a year; for example, the average Alabama property owner enjoys bills that are an incredible $11,786 lower than a homeowner in New Jersey, the state with the highest property tax rate.
Detailed Analysis of States with Lowest Property Taxes
Rank | State | Average Home Value ($) | 2024 Property Tax Rate (%) | 2024 Average Annual Property Tax ($) |
1 | Alabama | $220,663.56 | 0.41% | $904.72 |
2 | West Virginia | $158,495.35 | 0.59% | $935.12 |
3 | Louisiana | $201,120.89 | 0.56% | $1,126.28 |
4 | Arkansas | $198,501.94 | 0.62% | $1,230.71 |
5 | Mississippi | $176,829.86 | 0.79% | $1,396.96 |
6 | South Carolina | $288,530.77 | 0.56% | $1,615.77 |
7 | Kentucky | $197,759.76 | 0.85% | $1,680.96 |
8 | Oklahoma | $199,764.60 | 0.90% | $1,797.88 |
9 | Wyoming | $316,886.00 | 0.61% | $1,933.00 |
10 | Indiana | $234,165.99 | 0.83% | $1,943.58 |
11 | Tennessee | $310,926.83 | 0.66% | $2,052.12 |
12 | Delaware | $371,609.08 | 0.58% | $2,155.33 |
13 | New Mexico | $294,313.87 | 0.80% | $2,354.51 |
14 | Missouri | $240,768.18 | 0.98% | $2,359.53 |
15 | Nevada | $433,802.11 | 0.55% | $2,385.91 |
16 | North Carolina | $322,789.39 | 0.80% | $2,582.32 |
17 | North Dakota | $262,048.76 | 1.00% | $2,620.49 |
18 | Arizona | $431,911.95 | 0.62% | $2,677.85 |
19 | Hawaii | $972,884.84 | 0.28% | $2,724.08 |
20 | Colorado | $549,171.97 | 0.51% | $2,800.78 |
21 | Idaho | $445,298.27 | 0.63% | $2,805.38 |
22 | Georgia | $320,922.92 | 0.90% | $2,888.31 |
23 | Utah | $519,840.69 | 0.58% | $3,015.08 |
24 | Virginia | $378,609.65 | 0.82% | $3,104.60 |
25 | Kansas | $220,219.76 | 1.43% | $3,149.14 |
26 | Ohio | $220,798.59 | 1.53% | $3,378.22 |
27 | Iowa | $216,698.61 | 1.57% | $3,402.17 |
28 | Michigan | $235,827.22 | 1.48% | $3,490.24 |
29 | Florida | $408,118.28 | 0.86% | $3,509.82 |
30 | South Dakota | $297,880.95 | 1.24% | $3,693.72 |
31 | Minnesota | $336,904.78 | 1.11% | $3,739.64 |
32 | Montana | $456,074.42 | 0.83% | $3,785.42 |
33 | Pennsylvania | $258,741.53 | 1.53% | $3,958.75 |
34 | Nebraska | $255,266.79 | 1.73% | $4,416.12 |
35 | Maryland | $418,999.69 | 1.07% | $4,483.30 |
36 | Alaska | $370,645.33 | 1.22% | $4,521.87 |
37 | Oregon | $502,426.45 | 0.93% | $4,672.57 |
38 | Maine | $387,523.51 | 1.28% | $4,960.30 |
39 | Texas | $303,703.03 | 1.80% | $5,466.65 |
40 | Wisconsin | $297,157.79 | 1.85% | $5,497.42 |
41 | Washington | $587,414.79 | 0.94% | $5,521.70 |
42 | California | $764,721.54 | 0.74% | $5,658.94 |
43 | Illinois | $256,600.41 | 2.27% | $5,824.83 |
44 | Rhode Island | $446,633.41 | 1.63% | $7,280.12 |
45 | Massachusetts | $610,853.88 | 1.20% | $7,330.25 |
46 | New York | $426,660.95 | 1.72% | $7,338.57 |
47 | Vermont | $398,737.03 | 1.90% | $7,576.00 |
48 | Connecticut | $407,740.96 | 2.14% | $8,725.66 |
49 | New Hampshire | $473,379.61 | 2.18% | $10,319.68 |
50 | New Jersey | $509,666.68 | 2.49% | $12,690.70 |
Alabama
While Alabama has a higher property tax rate than other states, such as Hawaii, property values are also much lower, protecting homeowners from a massive bill at the end of the year. A Choctaw County resident can expect a bill of less than $200 yearly, as home values are just $104,667 here. Earlier in 2024, the state legislature passed a bill to cap increases of assessed values to just 7%, helping to prevent significant shifts in annual taxes.
West Virginia
The average-priced home in this state is just $169,446, which is less than half the national average. However, home prices have risen by about 5% in the last year, so the average real estate tax will likely increase unless governments offer rate reductions.
However, tax breaks are coming to West Virginians in 2025. The WV Income Tax Reduction Act will slash income tax rates by 21.5%, the most significant rate reduction in state history.
Louisiana
Recent changes in the state legislature will offer homeowners even more significant relief in addition to the state’s low taxes. A bill was introduced in the 2024 session that will limit property value reassessments to every four years rather than every year, helping to reduce the impact of rising home prices.
Arkansas
Jefferson County has some of the lowest rates in the state, at just 0.67%. Homes are also affordable here, making it an excellent option for those seeking a cheaper bill at the end of the year. Homeowners here can expect to pay about $769 per year.
Mississippi
Rates vary widely across the state. The lowest property tax rates are in Tunica County, at just 0.48%, and in Choctaw County, at 0.5%. However, Hind, Noxubee, Quitman, and Union counties can expect to pay much more.
South Carolina
Those purchasing homes in South Carolina should be familiar with state laws. Tax caps only allowed home values to rise by 15% over five years unless the house is sold. At this time, the assessment adjusts to the current market rate, leading to significantly different bills for homeowners.
Kentucky
Kentucky’s property tax rates have dropped for three consecutive years, and income tax rates have also fallen, allowing Kentucky homeowners to save more of their hard-earned money. The average homeowner pays just $1,680.96.
Oklahoma
Rural Oklahomans can save immensely on taxes; a home in Cimarron County will cost just $244 in property tax. However, the typical bill is about $1,797.88, the 8th lowest in the country.
Wyoming
Census Bureau data shows that Wyoming is one of the most sparsely populated states in the country, and this is reflected in the tax bills that residents receive each year. MoneyGeek lists Wyoming as the most tax-friendly state in the nation, with taxes only about 3% of the typical household income.
Indiana
Census data shows that Marion County is the most populous state, and residents receive larger property tax bills to match. Taxes have increased in this county by about 13.75% in recent years, and voters are expected to decide whether they will tolerate even more increases.
Tennessee
While Tennessee’s rates are a bit higher than those of other Southern states, the state does not levy an income tax, which can help make up the difference for taxpayers. Pickett County has the lowest rates, at just 0.37%.
Delaware
Currently, Delaware taxpayers can request a reassessment of their property taxes. Ongoing lawsuits challenge the nature of the state’s property tax system and the undue burden it places on taxpayers. As lawsuits wrap up, this may lead to excellent relief in the future.
New Mexico
New Mexico taxpayers can enjoy great rebates on solar panels, with tax credits of up to $6,000. An exemption also ensures these additions will not raise property taxes, allowing homeowners to save money on their yearly bills while reducing their energy expenditures.
Missouri
Homeowners in Jackson County specifically can find relief from their 2023 bills, as the legislature has ordered that property assessments were not done according to law. Anyone whose home values rose by more than 15% can request a rollback to the 15% increase.
Nevada
Nevada is considered a tax-friendly state because the average homeowner pays lower property taxes than neighboring Utah or Idaho. They also do not have to contend with state income tax, making their $2,385.91 even more reasonable.
North Carolina
Bertie County residents will pay only about $701 per year, while those in Orange County, which has the highest property taxes in the state, are hit with a bill of more than $3,784 per year. These significant disparities make it crucial that homebuyers look up the rate in their area before choosing a property.
North Dakota
Sioux County has the lowest property tax rate in the state, with most homeowners paying around $223 per year. However, the average bill statewide is about $2,620.49; this significant discrepancy makes it essential to look at local data to understand what you will be expected to pay.
Arizona
Arizona has a unique rebate option for homeowners. If local officials do not enforce nuisance laws on homeless camps in their area, homeowners can receive a refund for part of their real estate taxes. This is an attempt to fight rising taxes and help keep Arizona affordable.
Hawaii
While Hawaii’s property tax rate is meager, its effective property tax rates are high due to the soaring average home value. Bans on short-term real estate sales are hoped to help equalize prices and offer property tax cuts.
Colorado
In 2023, the legislature offered $430 million in property tax relief, but this was only for one year, making it difficult for homeowners to determine their bills next year.
Idaho
Due to a soaring average home value, lawmakers have worked to cap tax rises, delivering approximately $500 in relief to owners in Ada County.
Georgia
Georgia’s tax code has undergone significant changes in recent years, and more is expected on the horizon. In addition to adjusting income tax rates, Governor Kemp has signed bills that allow counties to cap the growth of home values to the inflation rate.
Utah
Property tax hikes are coming soon for Utahns, as 60 entities suggest even higher resident bills. Thankfully, local committees are fighting this, recognizing the undue burden this would place on homeowners.
Virginia
Areas near Washington, DC, tend to have significantly higher property tax rates, increasing the average for the whole state. In contrast, more rural areas, like Buchanan County, have much lower resident bills.
Kansas
New tax cuts are coming for Kansans as legislatures raise the exemption rates for residential purchasers; however, this will only go into effect in 2025.
Ohio
Over a dozen bills are in circulation attempting to reduce effective property tax rates for homeowners in light of recent property value hikes; currently, Ohioans are paying about $3,378.22 a year.
Iowa
2023 saw a property tax cap put in place that will prevent further hikes, and legislatures are now eyeing similar caps for income taxes to keep Iowans enjoying a good quality of life.
Michigan
A 5% increase in effective property tax rates will cause significant trouble for homeowners as rates adjust to current inflation.
Florida
While Floridians may pay a large tax bill of about $3,509.82 each year, they also pay no state income tax, which can help reduce the burden.
South Dakota
This month, SD will be opening a hearing to assess its property valuation system better, intending to reduce property taxes for all residents.
Minnesota
Minnesota aims to improve its tax credit system and raise valuation rates on homestead exemptions to reduce property taxes for citizens and tame inflation.
Montana
The Census Bureau notes that Montana is sparsely populated, which unfortunately equates to higher resident taxes. The average Montanan pays about $3,785.42, which is significantly more than for North Dakotans.
Pennsylvania
Senior citizens and those with disabilities can now claim a new $1,000 credit, which will help reduce the effective property tax rate for those most affected by changes.
Nebraska
The Nebraska governor, concerned with rising median home value, has proposed reducing property tax rates by raising the sales tax by 2 cents. He hopes this will prevent deficits without placing undue burdens on property owners in the state. However, this has been an uphill battle against the state legislature.
Maryland
Like Virginia, the countries closest to the capital–and Baltimore–have the highest effective property tax rates. More rural areas, like Talbot, have a much lower effective property tax rate of just 0.66%.
Alaska
While effective property tax rates are high in The Last Frontier, Alaska has no income or sales taxes, which can offer some tax relief for homeowners. Some very remote areas of Alaska need an effective property tax rate.
Oregon
Oregon has a D rating by MoneyGeek because of its high tax burdens on families, including property tax rates. However, most of this burden comes from high-income taxes; the state’s typical property taxes are around $4,672.57, lower than neighboring California’s.
Maine
Census data shows that Maine’s population increased significantly after the pandemic–and with it, so did property tax rates. At the same time, the legislature aims to raise taxes specifically on high-value homes to help boost affordable housing.
Texas
While the average Texan pays about $5,466.65, there are still places where you can enjoy a lower tax bill. According to the Census Bureau, Loving County, Texas, is the least populous county in the country, with only 64 people. Though its tax rate is 1.19%, the average Loving County resident pays only $149 in property taxes due to the low home values.
Wisconsin
Tax levies have increased significantly in the state over the past year, most specifically to help keep school districts competitive. Last year, the average Wisconsin paid $5,497.42 in property taxes, much higher than neighboring Michigan.
Washington
Washington homeowners enjoy laws that say they must not pay more than 1% of the property value. However, levies approved by voters, such as those for schools, are added to this amount as passed, meaning property tax can fluctuate with each voting cycle. Still, homeowners enjoy a lower-than-average tax of about .84%. The average tax paid last year was $4061.
California
All Bay Area tax rolls, including Sonoma, Napa, Solano, and Marin County, have increased significantly in the past year. However, some caps and an ample homestead exemption can assist.
Illinois
According to MoneyGeek, Illinois is one of the most “tax-unfriendly” states, with homeowners paying much higher bills than in neighboring Iowa or Indiana. Taxes represent about 13% of the average family’s income in this state.
Rhode Island
Like many Atlantic states, Rhode Island’s expensive homes translate to high bills for residents. Due to these high rates, it’s considered one of the most expensive states to live in.
Massachusetts
Big cities like Boston and Worchester tend to have much higher rates, but all Massachusetts residents will struggle with high property taxes simply due to this area’s high home sale prices. However, the “Millionnaire’s Tax” burdens more expensive homes and pulls up these averages.
New York
Nassau, New York, Rockland, and Westchester counties have typical taxes exceeding $10,000 per year because of the enormous property values. Other counties around New York County, like Suffolk County and Putnam County, also have bills that exceed $9,000.
Vermont
Vermont is known for its excellent schools, which comes from its high property tax rate. Last year, residents saw their property tax rise by up to 13% to fund education.
Connecticut
Connecticut has made significant changes to its tax laws in recent years, including attempting to remove car taxes. It also provided over $460 million in tax reductions for residents, recognizing that the average bill of $8,725.66 significantly burdens homeowners.
New Hampshire
New Hampshire’s ten counties set their rates, meaning that residents of Sullivan County (2.78%) pay significantly higher property tax bills than those in Carroll County (1.34%).
Additionally, New Hampshire does not have an estate or inheritance tax, which can help heirs save money to protect a family’s property.
New Jersey
A high cost of living, very competitive schools, and costly housing make New Jersey’s property tax rate the highest in the country. Local control of public services also means that bills vary widely across the state.
Comparative Analysis of Real Estate Taxes Across States
The states with the lowest property taxes tend to be in the South and Midwest, where the median home value is lower. The highest property taxes are in New England, a Northeast United States region where homeowners expect excellent local services like high-quality schools and infrastructure.
There are some outliers regarding the property tax rate; specifically, Hawaii has a meager actual rate yet a very high effective property tax rate. This is because, being such an attractive destination, homes are costly. The combination of home prices and property tax rates creates significant shifts in which states have high annual taxes.
In general, though, local governments seek to reduce effective property tax rates to attract new homeowners and stimulate the economy. This is done through numerous options, including raising sales tax while lowering the property tax rate, offering rebates to specific demographics, and changing assessment methods to keep prices low.
Property Tax Rates by State Ranked Lowest to Highest (2024)
As mentioned above, the effective property tax rate does not necessarily represent the actual property tax rate; high home prices can mean a low rate, which still translates into a hefty bill. As in Alabama, a combination of low median home value and low property tax rate will offer significant savings as opposed to a place like Hawaii, which has a very low property tax rate but a high cost of living. Some areas, like New Jersey, have such a high effective property tax rate because their housing is expensive and their rates are also high.
Rank | State | 2024 Property Tax Rate (%) |
1 | Hawaii | 0.28% |
2 | Alabama | 0.41% |
3 | Colorado | 0.51% |
4 | Nevada | 0.55% |
5 | Louisiana | 0.56% |
6 | South Carolina | 0.56% |
7 | Delaware | 0.58% |
8 | Utah | 0.58% |
9 | West Virginia | 0.59% |
10 | Wyoming | 0.61% |
11 | Arizona | 0.62% |
12 | Arkansas | 0.62% |
13 | Idaho | 0.63% |
14 | Tennessee | 0.66% |
15 | California | 0.74% |
16 | Mississippi | 0.79% |
17 | New Mexico | 0.80% |
18 | North Carolina | 0.80% |
19 | Virginia | 0.82% |
20 | Indiana | 0.83% |
21 | Montana | 0.83% |
22 | Kentucky | 0.85% |
23 | Florida | 0.86% |
24 | Georgia | 0.90% |
25 | Oklahoma | 0.90% |
26 | Oregon | 0.93% |
27 | Washington | 0.94% |
28 | Missouri | 0.98% |
29 | North Dakota | 1.00% |
30 | Maryland | 1.07% |
31 | Minnesota | 1.11% |
32 | Massachusetts | 1.20% |
33 | Alaska | 1.22% |
34 | South Dakota | 1.24% |
35 | Maine | 1.28% |
36 | Kansas | 1.43% |
37 | Michigan | 1.48% |
38 | Ohio | 1.53% |
39 | Pennsylvania | 1.53% |
40 | Iowa | 1.57% |
41 | Rhode Island | 1.63% |
42 | New York | 1.72% |
43 | Nebraska | 1.73% |
44 | Texas | 1.80% |
45 | Wisconsin | 1.85% |
46 | Vermont | 1.90% |
47 | Connecticut | 2.14% |
48 | New Hampshire | 2.18% |
49 | Illinois | 2.27% |
50 | New Jersey | 2.49% |
Key Findings of Our Research:
- The average annual property tax rate for all 50 states is 1.10% or $3,909.66 per year
- Hawaii has the lowest property taxes among the 50 states at 0.28% but a high effective property tax rate
- Nevada has the lowest property taxes and no income taxes
- The states with the lowest property taxes are Alabama and West Virginia
- Alabama has the lowest average annual property taxes at $904.72, which is 0.41% of its average home value of $220,663.56
- West Virginia has the second lowest property taxes at $935.12, which is 0.59% of its average home value of $158,495.35
Conclusion
Effective property tax rates will significantly impact your home search. They will tell you whether you’re moving to an affordable area or will suffer sticker shock when tax season arrives.
A low-priced home does not necessarily mean you’ll save on living expenses if effective property tax rates are high. Looking at home prices and tax rates together will give you a good idea of what to expect when choosing your home.
A trustworthy real estate agent from the National Association of Realtors can help you untangle the complicated relationships between prices and tax rates, ensuring you have the best chance of a beautiful, affordable homeownership journey.