The 15 States With the Lowest Property Taxes in the U.S. (2024)

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, it might be time to seek a little tax relief by moving to a less costly region (hint: your best bets are in the south and middle of the country). Below, we count down list the states with the lowest property taxes from the 15th-lowest effective tax rate to lowest overall.

Tennessee

The Volunteer State ranks 15th in the nation for the lowest property taxes, with an effective tax rate of 0.66 percent. With median home values at $193,700, it’s not unusual for property taxes to be as low as $100 per month.

Idaho

Idaho may be known for its potatoes, but it’s also a great place to be a homeowner. The state has an effective property tax rate of 0.63 percent, down from last year’s 0.69 percent. Property values are, however, higher than average: The median cost of a home is $266,500, a substantial jump from last year’s median of $212,000. That means residents who own average-priced houses will pay about $1,682 a year in property tax.

RELATED: The Best Cities for Downsizing

Arizona

With an effective property tax rate of 0.62 percent, Arizona is tied for the 12th spot in the national ranking. Average property values in the state are $265,600—a little higher than the national average—making the average property tax payment in Arizona around $1,648 per year. Arizona ranks 10th in the country in terms of average annual temperatures, which makes it a perfect place for those who love warm weather.

Arkansas

Tied with Arizona is Arkansas, which has 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 $142,100. At that rate, property taxes on a median-priced home amount to about $878 annually, making Arkansas’s cost of living one of the more attractive in the country.

RELATED: The 15 States With the Highest Property Tax Rates in the U.S.

Wyoming

With property taxes running just over $1,442 a year on the average $237,900 house, real estate is 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. Wyoming doesn’t have a state income tax, either, which makes it an even more affordable place to live.

West Virginia

West Virginia’s low effective property tax rate, coupled with its modest home prices, make housing really affordable. You would spend just $756 a year in property tax on a house worth $128,800—the median home value in the state.

RELATED: 10 Ways to Lower Your Property Taxes

Utah

Utah, tied for eighth on our list, has an effective property tax rate of only 0.58 percent, which is down from 0.63 percent last year. 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 retirement destinations.

Delaware

The tiny state of Delaware is tied with Utah for the eighth-lowest effective property tax rate in the country at 0.58 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, and Pennsylvania (10th most expensive).

RELATED: 20 Places With (Almost) Zero Crime

District of Columbia

Washington, D.C., isn’t a state but it does have its own property tax, which is surprisingly low at 0.57 percent. That low tax rate, however, goes only so far in shaving dollars off your real estate expenses. Housing costs are quite high in the district, with the median home value coming in at $635,900. Ouch!

South Carolina

It’s a tie! Louisiana and South Carolina both have an effective property tax rate of 0.56 percent. The median home value in South Carolina is similar to that of Louisiana at $181,800, so both states are comparable in terms of cost of living.

RELATED: 7 Home Renovations That Will Increase Your Property Taxes

Louisiana

Louisiana’s home prices are low, with an average home price of $174,000. The weather is warm, the food is delicious, and the effective property tax rate is 0.56 percent. No wonder Louisiana residents are so happy and relaxed!

Nevada

Last year Nevada placed in the ninth spot with an effective property tax rate of 0.6 percent. This year the rate has dropped to 0.55 percent, bringing the Silver State to fourth place. Property values in Nevada are close to the national average at $315,900, meaning annual tax payments are in the ballpark of $1,736. 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.

RELATED: 19 Places With (Almost) Zero Crime

Colorado

Colorado is one of the country’s most beautiful states, with imposing mountain landscapes and incredible natural vistas. On top of its natural 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 $397,500, putting annual taxes on an average house around $2,017. While these costs are higher than they were last year, Colorado maintains its spot at number three on the list.

Alabama

With an effective real estate tax rate of 0.41 percent and a median home value of $157,100, Alabama has the lowest overall housing costs in the United States. This results in an average annual property tax payment of just $646. In addition to low housing costs, Alabama is also one of the cheapest places to live in the country in terms of the overall cost of living.

RELATED: These 30 Places Have the Worst Weather in America

Hawaii

As if there weren’t enough reasons to want to move to Hawaii, its 0.29 percent effective property tax rate—the lowest in the United States—is as beautiful as its beaches. But 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 $662,100. This would result in an annual property tax bill of $1,893, which is less than the U.S. average, but certainly not chump change. Aside from housing costs, Hawaii also has the highest cost of living in the country. Even paradise has its problems.