Property taxes can make or break your budget as a homebuyer. That’s especially true if you live in one of the higher property tax states in the U.S. New Jersey, for example, has the the highest property tax rate in the nation at 2.47%, while Hawaii has the lowest at 0.29%. There are 21 states with property tax rates above the national average. If you want to see which states have the lowest property taxes, here’s a breakdown of the 10 states with the lowest property taxes in the U.S.
If you are a homeowner, a financial advisor can help optimize your tax planning.
What Are Property Taxes?
Property taxes in the U.S. are collected by local governments and usually based on the value of the property. The rates can vary from county to county and state to state. Property taxes generally pay for community safety, schools, infrastructure and other public projects.
If you’re in the market to buy a home, you need to consider how much property taxes will cost as part of your overall budget. As with other types of taxes, this is an expense that can generally increase over time.
10 States With the Lowest Property Tax Rates in the U.S.
Let’s take a closer look at the 10 states with the lowest property tax rates in the country. All of the data below comes from the Census Bureau’s 2022 1-year American Community Survey (ACS) Estimates.
1. Hawaii
Hawaii has the lowest property tax rate in the U.S. at 0.29%. The Aloha state has a home median value of $662,100. For a comparison with New Jersey, the state with the highest effective property tax rate in the nation at 2.47%, Hawaii’s home median value is just over twice the home median value of the Garden State ($355,700). Hawaiian homeowners pay $1,893 in median real estate taxes per year.
2. Alabama
Alabama is generally one of the more affordable states in the country. At 0.41%, it has the second-lowest property tax rate nationwide and a home median value of $157,100, which is almost $125,000 lower than the national home median value ($281,900). Homeowners in this state pay $646 annually in median real estate taxes.
3. Colorado
Colorado has the third-lowest property tax rate at 0.51%. Its home median value is $397,500, which is roughly $82,000 higher than fourth-ranked Nevada. This is the sixth-highest home median value, after Hawaii, the District of Columbia, California, Massachusetts and Washington. Homeowners in the Centennial State pay $2,017 annually in median real estate taxes.
4. Nevada
Nevada has the fourth-lowest property tax rate in the nation (0.55%). The $315,900 home median value in this state, however, is $34,000 higher than the nation’s home median value of $281,900. But homeowners in the Sagebrush state pay $1,736 in median real estate taxes annually, which is $1,133 less than the median real estate taxes paid in the U.S.
5. South Carolina
The Palmetto State has the fifth-lowest property tax rate in the nation at 0.56%. Generally an affordable state, home median value in South Carolina is $181,800, which is just over $100,000 less than the U.S. home median value. Homeowners in this state pay $1,024 annually in median real estate taxes, which is $1,845 less than what Americans pay nationwide.
6. Louisiana
The Pelican State has the sixth-lowest property tax rate in the U.S. at 0.56%. It also features the 13th-lowest home median value at $174,000. Homeowners in Louisiana pay $983 annually in median real estate taxes, which is more than $1,886 lower than the median real estate taxes paid nationwide.
7. District of Columbia
Washington D.C.’s 0.57% property tax rate is the seventh-lowest in the country. But the home median value is the second-highest in the U.S. ($635,900). Homeowners in the District of Columbia pay $3,641 annually in median real estate taxes, which is almost $800 more than what Americans pay nationwide.
8. Utah
Utah’s 0.58% property tax rate is the eighth-lowest in the country. But while property taxes are lower here than the national rate, the home median value is the 10th-highest in the U.S. ($339,700). Homeowners in the Beehive State pay $1,967 annually in median real estate taxes, which is roughly $900 less than what Americans pay nationwide.
9. Delaware
Standing at 0.58%, Delaware has the ninth-lowest property tax rate in the country. The state’s home median value is $269,700, which is just below the national home median value of $281,900. Homeowners in The First State pay $1,570 annually in median real estate taxes, which is almost $1,300 lower than median real estate taxes paid in the U.S.
10. West Virginia
West Virginia rounds out the list of 10 states with the lowest property taxes with a 0.59% rate. Home median value in the Mountain State is $128,800, which is $153,100 lower than the national home median value of $281,900. Homeowners in this state pay $756 annually in median real estate taxes, which is $2,113 less than the median real estate taxes paid in the U.S.
Property Tax Figures for All 50 States and Washington, D.C.
To see how your state compares with the rest of the country, we break down the median home value, median real estate taxes paid and the effective property tax rate for each state. Again, data for the table below comes from the Census Bureau’s 2022 1-year American Community Survey (ACS) Estimates.
| State Name | Home Median Value | Median Real Estate Taxes Paid | Property Tax Rates |
| USA | $281,900 | $2,869 | 101.77% |
| Alabama | $157,100 | $646 | 41.12% |
| Alaska | $282,800 | $3,464 | 122.49% |
| Arizona | $265,600 | $1,648 | 62.05% |
| Arkansas | $142,100 | $878 | 61.79% |
| California | $573,200 | $4,279 | 74.65% |
| Colorado | $397,500 | $2,017 | 50.74% |
| Connecticut | $286,700 | $6,153 | 214.61% |
| Delaware | $269,700 | $1,570 | 58.21% |
| District of Columbia | $635,900 | $3,641 | 57.26% |
| Florida | $248,700 | $2,143 | 86.17% |
| Georgia | $206,700 | $1,850 | 89.50% |
| Hawaii | $662,100 | $1,893 | 28.59% |
| Idaho | $266,500 | $1,682 | 63.11% |
| Illinois | $212,600 | $4,744 | 223.14% |
| Indiana | $158,500 | $1,308 | 82.52% |
| Iowa | $160,700 | $2,522 | 156.94% |
| Kansas | $164,800 | $2,355 | 142.90% |
| Kentucky | $155,100 | $1,320 | 85.11% |
| Louisiana | $174,000 | $983 | 56.49% |
| Maine | $212,100 | $2,722 | 128.34% |
| Maryland | $338,500 | $3,633 | 107.33% |
| Massachusetts | $424,700 | $5,091 | 119.87% |
| Michigan | $172,100 | $2,551 | 148.23% |
| Minnesota | $250,200 | $2,767 | 110.59% |
| Mississippi | $133,000 | $1,052 | 79.10% |
| Missouri | $171,800 | $1,676 | 97.56% |
| Montana | $263,700 | $2,189 | 83.01% |
| Nebraska | $174,100 | $2,916 | 167.49% |
| Nevada | $315,900 | $1,736 | 54.95% |
| New Hampshire | $288,700 | $6,036 | 209.08% |
| New Jersey | $355,700 | $8,797 | 247.32% |
| New Mexico | $184,800 | $1,470 | 79.55% |
| New York | $340,600 | $5,884 | 172.75% |
| North Carolina | $197,500 | $1,583 | 80.15% |
| North Dakota | $209,900 | $2,092 | 99.67% |
| Ohio | $159,900 | $2,447 | 153.03% |
| Oklahoma | $150,800 | $1,351 | 89.59% |
| Oregon | $362,200 | $3,352 | 92.55% |
| Pennsylvania | $197,300 | $3,022 | 153.17% |
| Rhode Island | $292,600 | $4,483 | 153.21% |
| South Carolina | $181,800 | $1,024 | 56.33% |
| South Dakota | $187,800 | $2,331 | 124.12% |
| Tennessee | $193,700 | $1,270 | 65.57% |
| Texas | $202,600 | $3,520 | 173.74% |
| Utah | $339,700 | $1,967 | 57.90% |
| Vermont | $240,600 | $4,570 | 189.94% |
| Virginia | $295,500 | $2,420 | 81.90% |
| Washington | $397,600 | $3,752 | 94.37% |
| West Virginia | $128,800 | $756 | 58.70% |
| Wisconsin | $200,400 | $3,472 | 173.25% |
| Wyoming | $237,900 | $1,442 | 60.61% |
Bottom Line
When preparing to buy a home, you must factor in how much you will pay for property taxes, which vary nationwide depending on your location. As an example, homeowners in New Jersey pay $8,797 annually, which is the highest rate in the country. This is just over three times the $2,869 median real estate taxes paid at the nationwide level. And, comparatively, Alabama homeowners pay only $646 per year, the lowest median real estate taxes in the U.S.
Tax Planning Tips for Homeowners
- A financial advisor can help you create a tax plan for your home and other real estate investments. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Property tax bills can change on an annual basis, depending on the value of the properties that you own. If you’re planning to buy a new home, SmartAsset’s property tax calculator can help you get the latest rates and forecast your annual property tax bill.
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