Lowest Property Tax States For Seniors

Lowest Property‑Tax States for Seniors (2026)

Property taxes are a major component of the cost of homeownership for older adults. Many seniors live on fixed incomes, and the amount they must pay each year can affect decisions about where to retire, whether to downsize, or how much of their savings they can allocate to health care and other necessities. Because property taxes are calculated as a percentage of a home’s assessed value, both the effective tax rate and the median home value in a state influence the actual dollar amount that seniors pay each year.

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 territory) with the lowest effective property‑tax rates, along with the median home values that are typical for seniors in those markets. The estimated annual tax is derived by applying the effective rate to the median home value.

Rank	State / Territory	Avg Effective Property Tax (%)	Median Home Value	Estimated Annual Tax
1	Hawaii property tax	0.27 %	$808,200	$2,183
2	Alabama property tax	0.38 %	$195,100	$738
3	Nevada property tax	0.49 %	$406,100	$1,970
4	Colorado property tax	0.49 %	$502,200	$2,448
5	Puerto Rico property tax	0.50 %	$124,600	$627
6	South Carolina property tax	0.51 %	$236,700	$1,199
7	Arizona property tax	0.52 %	$358,900	$1,858
8	Delaware property tax	0.53 %	$326,800	$1,731
9	Utah property tax	0.53 %	$455,000	$2,412
10	Idaho property tax	0.53 %	$376,000	$2,006

How the Data Relates to Seniors

Hawaii (Rank 1) – Although the effective tax rate is the lowest in the nation, the median home price is considerably higher than the national median. For seniors who already own property, the resulting tax bill of roughly $2,200 per year is modest relative to the home’s value. For first‑time senior buyers, the high purchase price may offset the low tax rate.
Alabama (Rank 2) – With an effective rate of 0.38 % and a median home value of $195,100, the estimated annual tax of $738 is the lowest dollar amount among the ten listings. This combination makes Alabama attractive for seniors seeking affordable housing and low tax obligations.
Nevada (Rank 3) – Nevada’s 0.49 % rate paired with a median home value of $406,100 yields an estimated tax of $1,970. The state also offers a relatively tax‑friendly environment for retirees because it does not impose a state income tax.
Colorado (Rank 4) – Colorado matches Nevada’s rate at 0.49 %, but the median home value is higher ($502,200), leading to an estimated tax of $2,448. Seniors in Colorado may benefit from the state’s property‑tax relief programs for low‑income owners, which can further reduce the burden.
Puerto Rico (Rank 5) – The territory’s effective rate of 0.50 % combined with a median home value of $124,600 results in an estimated tax of $627, the lowest dollar figure in the list. Puerto Rico’s tax structure includes exemptions for senior homeowners that can lower the effective rate even further.
South Carolina (Rank 6) – At 0.51 % effective and a median home value of $236,700, seniors can expect an annual property‑tax bill of about $1,199. The state offers a homestead exemption that reduces the taxable value for qualifying seniors.
Arizona (Rank 7) – Arizona’s 0.52 % rate applied to a median home value of $358,900 leads to an estimated tax of $1,858. The state’s property‑tax freeze for seniors (the “Senior Property Tax Freeze” program) can further limit increases for eligible homeowners.
Delaware (Rank 8) – With an effective rate of 0.53 % and a median home value of $326,800, the estimated annual tax is $1,731. Delaware provides a property‑tax credit for seniors with limited incomes, which can reduce the net payment.
Utah (Rank 9) – Utah also reports a 0.53 % effective rate, but the median home value is $455,000, resulting in an estimated tax of $2,412. Seniors in Utah may qualify for the “Senior Property Tax Exemption” that caps the taxable value of a primary residence.
Idaho (Rank 10) – Idaho’s effective rate of 0.53 % applied to a median home value of $376,000 yields an estimated tax of $2,006. The state offers a property‑tax deferment program for qualifying seniors, allowing them to postpone payments until the home is sold or the owner passes away.

National Context

Based on the most recent ACS estimates, the average effective property‑tax rate nationwide is 0.97 %, more than three times the rate in the lowest‑tax state (Hawaii). The median annual property tax across the United States is $2,993, which exceeds the estimated tax in nine of the ten jurisdictions listed above. Seniors residing in the low‑tax states typically face a smaller proportion of their fixed income devoted to property taxes, potentially freeing resources for health care, long‑term care, or leisure activities.

Sources

U.S. Census Bureau, 2023 American Community Survey (5‑year estimates) – Property tax and median home‑value data.
State‑specific property‑tax information (used for internal linking) – see individual state pages linked above.

All figures are estimates derived from the effective tax rate multiplied by the median home value reported in the ACS. Actual tax bills may vary due to local assessment practices, exemptions, and senior‑specific relief programs.

Lowest Property Tax States For Seniors