Find the States with the Lowest Property Taxes
Compare property tax rates across all 50 states. Make informed decisions about where to buy your next home and save thousands annually.
What is Property Tax and Why It Matters
Property tax is a levy imposed by state, county, and local governments on the assessed value of real‑estate holdings. The revenue generated is typically used to fund public services such as schools, police and fire protection, road maintenance, and other community infrastructure.
Because the amount of tax a homeowner pays depends on both the local tax rate and the value of the property, variations in rates across states can have a noticeable impact on household expenses. Choosing a state with lower property taxes can save you thousands of dollars annually, making it a crucial factor in your home buying decision.
National Context
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), property tax rates vary significantly across the United States. Understanding these national averages helps put state-specific rates into perspective.
The states listed below have effective rates well below the national average, resulting in lower estimated annual taxes for a median‑priced home in each state. This can translate to significant savings over the lifetime of homeownership.
Top 3 Lowest Tax States
According to the U.S. Census Bureau's American Community Survey
Brief State-by-State Snapshot
Hawaii
#1The lowest effective rate (0.27%) but a high median home value leads to an estimated tax of $2,183, still below the national median.
Alabama
#2The second‑lowest rate (0.38%) combined with a modest median home price yields the lowest estimated annual tax ($738).
Nevada
#3Effective rate of 0.49% with annual taxes of $1,970 on a median-valued home.
Colorado
#4Note: The remaining states in the top 10 (South Carolina, Arizona, Delaware, Utah, and Idaho) each have effective rates around 0.52%–0.53%, with annual taxes ranging from $1,731 to $2,412.
Top 10 States with Lowest Property Taxes
Ranked by effective property tax rate • Data from U.S. Census Bureau
| RANK | STATE | EFF. TAX RATE | MEDIAN HOME VALUE | EST. ANNUAL TAX | VS NATIONAL AVG | |
|---|---|---|---|---|---|---|
| 1 | Hawaii (HI) | 0.27% | $808,200 | $2,183 | -72% | |
| 2 | Alabama (AL) | 0.38% | $195,100 | $738 | -61% | |
| 3 | Nevada (NV) | 0.49% | $406,100 | $1,970 | -50% | |
| 4 | Colorado (CO) | 0.49% | $502,200 | $2,448 | -50% | |
| 5 | Puerto Rico (PR) | 0.50% | $124,600 | $627 | -48% | |
| 6 | South Carolina (SC) | 0.51% | $236,700 | $1,199 | -48% | |
| 7 | Arizona (AZ) | 0.52% | $358,900 | $1,858 | -47% | |
| 8 | Delaware (DE) | 0.53% | $326,800 | $1,731 | -45% | |
| 9 | Utah (UT) | 0.53% | $455,000 | $2,412 | -45% | |
| 10 | Idaho (ID) | 0.53% | $376,000 | $2,006 | -45% |
Note: Figures are based on the most recent ACS estimates. Actual property taxes vary by county and municipality. Estimated annual tax is calculated on each state's median home value.
Comparison to the National Average
All ten jurisdictions in our top rankings have effective property tax rates between 0.53% and 0.27%, which are significantly lower than the national average of 0.97%.
Consequently, the estimated annual taxes for median‑priced homes in these top states range from $627 to $2,448, compared with the national median of $2,993. This represents potential annual savings of hundreds to thousands of dollars compared to states with average or above-average rates.
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How Property Tax is Calculated
Understanding how property tax is calculated helps you make informed decisions about where to buy property. The process involves three key steps:
1Assessment
The government assesses a property's market value, often based on recent sales of comparable homes. This assessed value may differ from the market value depending on your state's assessment ratio.
2Rate Determination
Each jurisdiction sets an effective property tax rate, expressed as a percentage of the assessed value. This rate can differ widely between states, counties, and even municipalities within a state.
3Tax Bill Calculation
The annual property tax is calculated by multiplying the assessed value by the effective tax rate.
The Formula
Annual Property Tax = Assessed Value × Effective Tax Rate
For example, if your home is assessed at $300,000 and your effective tax rate is 1%, you would pay $3,000 annually in property taxes. This is why choosing a state with a lower effective rate can result in substantial savings.
Browse All States
Compare States Side-by-Side
Detailed comparisons between states to help you make informed decisions about where to buy property
Hawaii Vs New Jersey
Compare property taxes between Hawaii and New
Delaware Vs Utah
Compare property taxes between Delaware and Utah
Alabama Vs New Jersey
Compare property taxes between Alabama and New
Colorado Vs Nevada
Compare property taxes between Colorado and Nevada
Hawaii Vs Illinois
Compare property taxes between Hawaii and Illinois
Indiana Vs Virginia
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Nevada Vs New Jersey
Compare property taxes between Nevada and New
Idaho Vs West Virginia
Compare property taxes between Idaho and West
Colorado Vs New Jersey
Compare property taxes between Colorado and New
Puerto Rico Vs South Carolina
Compare property taxes between Rico and South
New Jersey Vs Puerto Rico
Compare property taxes between Jersey and Puerto
Idaho Vs Utah
Compare property taxes between Idaho and Utah
New Jersey Vs South Carolina
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Delaware Vs Idaho
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Arizona Vs New Jersey
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Louisiana Vs Tennessee
Compare property taxes between Louisiana and Tennessee
Delaware Vs New Jersey
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Maine Vs South Dakota
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New Jersey Vs Utah
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Arkansas Vs District Of Columbia
Compare property taxes between Arkansas and District
Frequently Asked Questions
Data Sources
Trusted Data from U.S. Census Bureau
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all 50 states and U.S. territories, ensuring accurate comparisons and informed decision-making.