America’s 15 States With Lowest Property Tax Rates

The average American homeowner spends $2,471 on property taxes every year, but some states have significantly lower effective tax rates than others.

Ranking the Lowest Property Tax States

states with lowest property tax

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, maybe it's time to seek a little tax relief by moving to a less costly region. This list of the 15 states with the lowest effective property tax rates may inspire you to pack your bags and head south—or to the islands.

15. Tennessee

states with lowest property tax

The Volunteer State ranks 15th in the nation for the lowest property tax, with an effective tax rate of 0.71 percent. And with median home values hovering around $167,000, it's not unusual for property taxes to be as low as $100 per month.

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14. Idaho

states with lowest property tax

Idaho may be known for its potato crops, but it’s also a great place to be a homeowner, with an effective property tax rate of 0.69 percent. Property values are also lower than average, with the median cost of a home hovering around $212,000. That means residents who own average-priced houses will pay just $1,456 a year in property tax.

13. Arizona

states with lowest property tax

With an effective property tax rate of 0.66 percent, Arizona takes the 13th spot in the national ranking. Average property values are a little lower than the national average at $225,500, making the average property tax payment $1,499 per year. Arizona is a perfect spot for those who love warm weather because it ranks tenth in the country in terms of average annual temperatures.

12. Utah

states with lowest property tax

Utah, 12th on our list, has an effective property tax rate of only 0.63 percent. 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 relocation destinations.

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11. Arkansas

states with lowest property tax

Arkansas lands just outside our top 10, with 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 $128,000. At that rate, property taxes on a median-priced home amount to about $798 annually, making Arkansas’s cost of living one of the more attractive in the country.

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10. Wyoming

states with lowest property tax

With property taxes running just over $1,300 a year on the average $220,500 house, real estate costs are 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.

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9. Nevada

states with lowest property tax

Rounding out the top 10 is Nevada, with an effective property tax rate of 0.6 percent. Property values in the Silver State are close to the national average at $267,900, meaning annual tax payments are in the ballpark of $1,600. 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.

8. West Virginia

states with lowest property tax

West Virginia's low effective property tax rate coupled with its modest home prices make housing really affordable. You would spend $698 a year in property tax on a house worth $119,600, which is the median home value in the state.

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6. Delaware

states with lowest property tax

The tiny state of Delaware has the sixth-lowest effective property tax rate in the country at 0.57 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, Maryland (21st most expensive), and Pennsylvania (11th most expensive).

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6. South Carolina

states with lowest property tax

It's a tie! Delaware and South Carolina both have an effective property tax rate of 0.57 percent. The median home value in South Carolina is lower than that of Delaware, though, by almost $100,000, which gives South Carolina the edge in terms of cost of living.

5. District of Columbia

states with lowest property tax

Washington, D.C., isn’t an official state but it has its own property tax, which is surprisingly low at 0.56 percent. That low tax rate, however, goes only so far in shaving dollars off your real estate expenses. Housing costs in the District are quite high, with the median home value coming in at $601,500. Ouch!

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4. Louisiana

states with lowest property tax

Louisiana's home prices are low, the weather is warm, the food is delicious, and the effective property tax rate is 0.55 percent. No wonder Louisiana residents are so happy and relaxed!

3. Colorado

3. Colorado

Colorado is one of the country’s most beautiful states, with imposing mountain landscapes and incredible natural vistas. One top of its aesthetic 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 $343,300, meaning your annual taxes would be $1,756.

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2. Alabama

states with lowest property tax

With an effective real estate tax rate of 0.41 percent and a median home value of $142,700, Alabama has the lowest overall housing costs in the United States. Pretty amazing!

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1. Hawaii

states with lowest property tax

As if there weren’t enough reasons to want to move to Hawaii, its 0.28 percent effective property tax rate—the lowest in the United States—is as beautiful as its beaches. 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 $615,300. This would result in an annual property tax bill of $1,715, which is less than the U.S. average, but certainly not chump change. Even paradise has its problems.

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