Lowest Property‑Tax States for Remote Workers

Why property tax matters for remote workers
Remote workers are no longer tied to a specific office location, so the cost of housing—including the recurring property‑tax burden—has become a primary factor in choosing a new residence. Property taxes affect monthly cash flow, the affordability of home‑based office space, and the overall cost of living. Because remote employees can work from anywhere, states with lower effective property‑tax rates can provide a measurable financial advantage, especially when combined with median home‑value levels.

According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), the national average effective property‑tax rate is 0.97 %, with a median home value of $318,381 and a median annual property tax of $2,993. The table below lists the ten states (and one U.S. territory) with the lowest effective property‑tax rates, along with median home values and the estimated annual tax calculated from the rate and median value.

Effective property‑tax rates are calculated as the median annual tax divided by the median home value.

State‑Specific Context for Remote Workers

Below is a concise, data‑driven overview of each jurisdiction, focusing on factors that are relevant to remote‑work decisions (e.g., housing cost, tax burden, typical broadband availability). The figures are drawn from the same ACS dataset referenced above.

1. Hawaii

• Effective tax rate: 0.27 % (lowest in the nation)
• Median home value: $808,200
• Estimated annual tax: $2,183

Hawaii’s low property‑tax rate offsets, to a limited degree, its higher median home price. Remote workers who prioritize a warm climate and island lifestyle may find the tax advantage useful when budgeting for a home office.

2. Alabama

• Effective tax rate: 0.38 %
• Median home value: $195,100
• Estimated annual tax: $738

Alabama’s combination of a low tax rate and a relatively modest median home value results in the smallest estimated annual property‑tax payment among the list. This can free additional household income for remote‑work equipment or co‑working space memberships.

3. Nevada

• Effective tax rate: 0.49 %
• Median home value: $406,100
• Estimated annual tax: $1,970

Nevada offers a tax rate close to the national median but with median home values that are higher than in many southern states. Remote workers benefit from the state’s lack of personal income tax, making the overall tax picture competitive.

4. Colorado

• Effective tax rate: 0.49 %
• Median home value: $502,200
• Estimated annual tax: $2,448

Colorado’s property‑tax rate matches Nevada’s, while median home values are higher, leading to a modestly higher estimated tax. The state’s strong broadband infrastructure and high quality‑of‑life rankings are relevant for remote workers.

5. Puerto Rico

• Effective tax rate: 0.50 %
• Median home value: $124,600
• Estimated annual tax: $627

Puerto Rico’s median home price is the lowest in the table, producing the smallest estimated annual tax amount. The territory’s U.S. affiliation means federal tax rules apply, but local tax incentives for remote workers may further affect net costs.

6. South Carolina

• Effective tax rate: 0.51 %
• Median home value: $236,700
• Estimated annual tax: $1,199

South Carolina’s moderate home values and low‑average tax rate keep the property‑tax burden below the national median. The state’s growing fiber‑optic networks are an asset for remote employees.

7. Arizona

• Effective tax rate: 0.52 %
• Median home value: $358,900
• Estimated annual tax: $1,858

Arizona’s tax rate is slightly above the national average, yet the median home value remains affordable compared with many coastal markets, resulting in a relatively low annual tax burden.

8. Delaware

• Effective tax rate: 0.53 %
• Median home value: $326,800
• Estimated annual tax: $1,731

Delaware’s property‑tax rate aligns with the national average, and its median home price is near the national median. The state’s corporate‑friendly environment and proximity to major East‑Coast hubs can be advantageous for remote workers who travel for business.

9. Utah

• Effective tax rate: 0.53 %
• Median home value: $455,000
• Estimated annual tax: $2,412

Utah’s median home value is above the national median, which pushes the estimated tax higher despite the average effective rate. However, the state’s strong technology sector and reliable high‑speed internet may offset the higher housing cost for remote‑tech professionals.

10. Idaho

• Effective tax rate: 0.53 %
• Median home value: $376,000
• Estimated annual tax: $2,006

Idaho’s property‑tax rate matches Utah’s, but with a slightly lower median home price, resulting in a modest annual tax amount. The state’s expanding broadband coverage supports remote work in both urban and rural areas.

Summary

Based on the most recent ACS estimates, the ten jurisdictions listed above provide the lowest effective property‑tax rates in the United States and its territories. For remote workers, the interaction between tax rate, median home value, and local infrastructure (e.g., broadband availability) determines the overall affordability of establishing a home office. When evaluating relocation options, incorporating the estimated annual property tax—derived directly from the effective rate and median home price—offers a concrete metric for comparing fiscal impacts across states.