The 15 States With the Lowest Property Taxes in the U.S.

Tired of paying through the nose on your property taxes? Consider moving to one of these states. 

By Jennifer Noonan and Savannah Sher | Published Apr 7, 2023 3:23 PM

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Aerial view of a luxury home surrounded by trees and a large landscaped lawn


How much are you paying in property taxes? Depending on where you live, your property taxes may be modest, or they may actually be higher than your mortgage payment. If you’re feeling the property tax pinch, it might be time to seek a little tax relief by moving to a less costly region (hint: your best bets are in the south and middle of the country). Below, we count down list the states with the lowest property taxes from the 15th-lowest effective tax rate to lowest overall.


Beautiful upscale homes on a residential block in Tennessee


The Volunteer State ranks 15th in the nation for the lowest property taxes, with an effective tax rate of 0.66 percent. With median home values at $193,700, it’s not unusual for property taxes to be as low as $100 per month.


Wide view of an Idaho town with homes and mountains in the distance


Idaho may be known for its potatoes, but it’s also a great place to be a homeowner. The state has an effective property tax rate of 0.63 percent, down from last year’s 0.69 percent. Property values are, however, higher than average: The median cost of a home is $266,500, a substantial jump from last year’s median of $212,000. That means residents who own average-priced houses will pay about $1,682 a year in property tax.

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City view of Tuscon, Arizona at sunset with mountains in background


With an effective property tax rate of 0.62 percent, Arizona is tied for the 12th spot in the national ranking. Average property values in the state are $265,600—a little higher than the national average—making the average property tax payment in Arizona around $1,648 per year. Arizona ranks 10th in the country in terms of average annual temperatures, which makes it a perfect place for those who love warm weather.


Arkansas town in autumn with a church steeple, trees and a cloudy sky


Tied with Arizona is Arkansas, which has an effective property tax rate of 0.62 percent. The average cost of a home in Arkansas is low, too; the median home value comes in at just under $142,100. At that rate, property taxes on a median-priced home amount to about $878 annually, making Arkansas’s cost of living one of the more attractive in the country.

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Street scene of Cheyenne, Wyoming, with historic buildings and street traffic


With property taxes running just over $1,442 a year on the average $237,900 house, real estate is relatively reasonable in the Equality State. That’s good, too, because if you end up living in Wyoming, you’ll find that the outdoors and adventure are so integral to the state’s culture that you might not spend that much time in your house anyway. Wyoming doesn’t have a state income tax, either, which makes it an even more affordable place to live.

West Virginia

Town square in West Virginia in autumn


West Virginia’s low effective property tax rate, coupled with its modest home prices, make housing really affordable. You would spend just $756 a year in property tax on a house worth $128,800—the median home value in the state.

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Aerial view of Park City, Utah with trees and red and blue houses


Utah, tied for eighth on our list, has an effective property tax rate of only 0.58 percent, which is down from 0.63 percent last year. But that’s not the only thing this beautiful state has going for it: With five national parks, major ski resorts, and the cultural hub of Salt Lake City, this state might very well make your short list of retirement destinations.


Historic homes on a tree-lined street in Dover, Delaware


The tiny state of Delaware is tied with Utah for the eighth-lowest effective property tax rate in the country at 0.58 percent. That’s one of the reasons the state has seen an influx of new residents moving in from neighboring states with higher taxes, like New Jersey, which takes top honors among the states with the highest property tax in the United States, and Pennsylvania (10th most expensive).

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District of Columbia

Colorful, historic townhouses in Washington, DC


Washington, D.C., isn’t a state but it does have its own property tax, which is surprisingly low at 0.57 percent. That low tax rate, however, goes only so far in shaving dollars off your real estate expenses. Housing costs are quite high in the district, with the median home value coming in at $635,900. Ouch!

South Carolina

Aerial view of a South Carolina city with colorful rooftops


It’s a tie! Louisiana and South Carolina both have an effective property tax rate of 0.56 percent. The median home value in South Carolina is similar to that of Louisiana at $181,800, so both states are comparable in terms of cost of living.

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Streetcar in New Orleans, Louisiana downtown area at sunset


Louisiana’s home prices are low, with an average home price of $174,000. The weather is warm, the food is delicious, and the effective property tax rate is 0.56 percent. No wonder Louisiana residents are so happy and relaxed!


Distant city view of Reno, Nevada with mountains and sunset in background


Last year Nevada placed in the ninth spot with an effective property tax rate of 0.6 percent. This year the rate has dropped to 0.55 percent, bringing the Silver State to fourth place. Property values in Nevada are close to the national average at $315,900, meaning annual tax payments are in the ballpark of $1,736. The state of Nevada makes billions of dollars each year on tourism, largely in Las Vegas, making it the state with the fourth highest tourism revenue in the country.

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Historic downtown Telluride, Colorado with saloon and storefronts


Colorado is one of the country’s most beautiful states, with imposing mountain landscapes and incredible natural vistas. On top of its natural appeal, it also has some of the country’s lowest property taxes at just 0.51 percent. The median value of a home in the Centennial State is $397,500, putting annual taxes on an average house around $2,017. While these costs are higher than they were last year, Colorado maintains its spot at number three on the list.


Historic home in Mobile, Alabama with large trees on lawn


With an effective real estate tax rate of 0.41 percent and a median home value of $157,100, Alabama has the lowest overall housing costs in the United States. This results in an average annual property tax payment of just $646. In addition to low housing costs, Alabama is also one of the cheapest places to live in the country in terms of the overall cost of living.

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Hawaiian beach houses with landscaping and palm trees at sunset


As if there weren’t enough reasons to want to move to Hawaii, its 0.29 percent effective property tax rate—the lowest in the United States—is as beautiful as its beaches. But before you trade in your business loafers for flip-flops, realize that the median price of a home in Hawaii is the highest in the country—a whopping $662,100. This would result in an annual property tax bill of $1,893, which is less than the U.S. average, but certainly not chump change. Aside from housing costs, Hawaii also has the highest cost of living in the country. Even paradise has its problems.