Do you want to move to a state with no property taxes? This can help you save money for retirement or living expenses. Property taxes vary a lot in the US. Some states have low real estate taxes and some have low vehicle taxes. Some have both! You need to know the property tax rates before you move. This can help you choose the best state for your budget.
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Which State Has No Property Taxes?
Unfortunately, there are no states with zero property taxes. Every state charges homeowners an effective real estate tax. There are exemptions in certain states if you are a senior citizen, veteran or a person living with a disability.
Which States Have No Property Taxes for Seniors?
The only state where there are no property taxes for seniors is Alabama. Most states charge senior citizens property taxes. There are exemptions that senior homeowners aged 65 years and older can qualify for.
Below are states with property tax exemptions for senior citizens and people with disability. Property tax exemptions will help lower property taxes for senior citizens.
In some states, you will need to submit an application to qualify for these real estate tax exemptions.
Do keep in mind that these property tax exemptions for seniors can change so please check the state’s latest property tax information.
Alabama
In Alabama, senior citizens aged 65 and over, or those who are permanently and totally disabled, or blind (regardless of age), are exempt from the state portion of property tax. County taxes may still be due.
Property tax exemptions for seniors can change, please check for the latest Alabama property tax information.
Alaska
Alaska provides an exemption from property taxes for the first $150,000 of assessed value for all senior citizens (65 years of age and over) and disabled veterans (50% or more service-connected disability).
Property tax exemptions for seniors can change, please check for the latest Alaska property tax information.
Florida
Florida allows an additional homestead exemption of up to $50,000 for seniors aged 65 or older, with a household income that does not exceed the income limitation.
Additionally, veterans aged 65 or older who are partially or totally permanently disabled may receive a discount on property taxes on property that they own and use as homesteads. This discount carries over to the veteran’s surviving spouse under certain conditions.
Property tax exemptions for seniors can change, please check for the latest Florida property tax information.
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Georgia
In Georgia, individuals 65 years of age or over may claim a $4,000 exemption from all county ad valorem taxes if the income of that person and their spouse does not exceed $10,000 for the prior year.
Certain types of income, such as income from retirement sources, pensions, and disability income, are excluded up to the maximum amount allowed to be paid to an individual and their spouse under the federal Social Security Act.
Property tax exemptions for seniors can change, please check for the latest Georgia Property tax information.
Mississippi
In Mississippi, homeowners who are 65 years of age and older or who are disabled are exempt from all ad valorem taxes up to $7,500.00 of assessed value.
To qualify, you must apply and provide proof of eligibility by April 1.
Property tax exemptions for seniors can change, please check for the latest Mississippi Property tax information.
South Dakota
South Dakota offers eligible senior citizens and disabled individuals a yearly refund of sales or property taxes. This refund is based on income, with the 2022 income limit for a single-member household being $14,949 and the limit for a multiple-member household being $20,141.
The individual must be at least 66 years old or disabled (as defined by the Social Security Act) and must have been a South Dakota resident for the entire previous year.
Property tax exemptions for seniors can change, please check for the latest South Dakota Property Tax Information.
Which State Has the Lowest Property Taxes?
Hawaii has the lowest property taxes in the United States with an effective real estate tax rate of just 0.29%.
Although Hawaii has the lowest property tax rate in the United States, it’s important to note that actual tax payments are higher in Hawaii because homes are expensive in Hawaii.
Hawaii’s median home value is $662,100, which means an annual tax bill of around $1,893.
13 States with the Lowest Property Taxes
1. Hawaii
Hawaii has the lowest property taxes in the US with an effective real estate tax rate of 0.29%.
However, that does not mean homeowners in Hawaii have the lowest property tax bills. It’s because property prices in Hawaii are high.
Hawaii has a median home value of $662,100, and the annual property tax on a home priced at the state median value is $1,893.
Additionally, Hawaii has an effective vehicle tax rate of zero, meaning that there are no annual taxes on cars.
| Hawaii | Value |
| Property Tax Rate | 0.29% |
| Median Home Value | $662,100 |
| Annual Property Tax | $1,893 |
| Vehicle Tax Rate | 0.00% |
2. Alabama
Alabama has the second lowest property taxes in the US. It has an effective property tax rate of 0.41%.
Alabama’s state median home value is $157,100, which means the annual property tax on a home priced at the state median value is $646.
It’s important to note that if you are a senior citizen in Alabama, you don’t have to pay property taxes! If you are a homeowner in Alabama over 65 years of age, you are exempt from the state portion of property tax. However, county taxes may still be due.
Alabama does charge annual vehicle tax. Alabama’s vehicle tax has an effective rate of 0.69%. That means for a $26,000 car, you will have to pay an annual tax of $181.
| Alabama | Value |
| Property Tax Rate | 0.41% |
| Median Home Value | $157,100 |
| Annual Property Tax | $646 |
| Vehicle Tax Rate | 0.69% |
3. Colorado
Colorado has the third lowest property taxes in the United States.
In Colorado, the effective property tax rate is 0.51%.
Colorado’s median home value is $397,500, this translates to an annual property tax of $2,017.
Do keep in mind that Colorado’s vehicle tax rate is higher, standing at 1.79%. That means for a $26,000 car, you will have to pay an annual car tax of $468 in Colorado.
| Colorado | Value |
| Property Tax Rate | 0.51% |
| Median Home Value | $397,500 |
| Annual Property Tax | $2,017 |
| Vehicle Tax Rate | 1.79% |
4. Nevada
Nevada has the fourth lowest property taxes in the United States. Homeowners in Nevada pay an effective property tax rate of 0.55%.
The median home value in Nevada is $315,900, which means the annual property tax is $1,736. Nevada does have a car tax. Nevada’s effective vehicle tax rate is slightly higher at 1.86%, which equates to an annual tax of $487 for a $26,000 car.
| Nevada | Value |
| Property Tax Rate | 0.55% |
| Median Home Value | $315,900 |
| Annual Property Tax | $1,736 |
| Vehicle Tax Rate | 1.86% |
5. Louisiana
Louisiana has one of the lowest property taxes in the United States. Louisiana has an effective real estate tax rate of 0.56%.
The median home value in Louisiana is $174,000, which results in an annual property tax of $983.
Louisiana does have a vehicle tax. Louisiana’s car tax is low at an effective rate of 0.10%, leading to a very low annual tax of $26 for a $26,000 car.
| Louisiana | Value |
| Property Tax Rate | 0.56% |
| Median Home Value | $174,000 |
| Annual Property Tax | $983 |
| Vehicle Tax Rate | 0.10% |
5. South Carolina
South Carolina has one of the lowest real estate taxes in the US. It has the same effective real estate tax rate as Louisiana with an effective property tax rate of 0.56%.
South Carolina’s median home value is $181,800, which means the median home tax is $1,024. South Carolina does charge a high vehicle tax. The state’s vehicle tax rate is significantly higher at 2.63%, translating to annual taxes of $690 for a $26,000 car.
| South Carolina | Value |
| Property Tax Rate | 0.56% |
| Median Home Value | $181,800 |
| Annual Property Tax | $1,024 |
| Vehicle Tax Rate | 2.63% |
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7. Washington DC
Washington DC has one of the lowest real estate taxes in the US. It has an effective property tax rate is 0.57%.
Washington DC has a median home value of $635,900, resulting in an annual property tax of $3,641.
Like Hawaii, Washington DC has no vehicle tax.
| Washington DC | Value |
| Property Tax Rate | 0.57% |
| Median Home Value | $635,900 |
| Annual Property Tax | $3,641 |
| Vehicle Tax Rate | 0.00% |
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8. Delaware
Delaware has one of the lowest property taxes in the US. In Delaware, the effective property tax rate is 0.58%.
Delaware’s median home value is $269,700, leading to a median property tax of $1,570.
Lucky for Delaware residents, Delaware does not charge an annual vehicle tax.
| Delaware | Value |
| Property Tax Rate | 0.58% |
| Median Home Value | $269,700 |
| Annual Property Tax | $1,570 |
| Vehicle Tax Rate | 0.00% |
Check out the Richest Towns in Delaware
8. Utah
Utah has one of the lowest real estate taxes in the United States. It has an effective property tax rate of 0.58%.
Utah’s median home value is $339,700, which equates to an annual property tax of $1,967.
Like Hawaii, Delaware, and Washington DC, Utah does not have a vehicle tax.
| Utah | Value |
| Property Tax Rate | 0.58% |
| Median Home Value | $339,700 |
| Annual Property Tax | $1,967 |
| Vehicle Tax Rate | 0.00% |
10. West Virginia
West Virginia has low property taxes. It has an effective property tax rate of 0.59%.
West Virginia’s median home value is $128,800, leading to an annual property tax of $756.
Keep in mind West Virginia does charge a high vehicle tax rate of 1.68%, resulting in an annual tax of $440 for a $26,000 car.
| West Virginia | Value |
| Property Tax Rate | 0.59% |
| Median Home Value | $128,800 |
| Annual Property Tax | $756 |
| Vehicle Tax Rate | 1.68% |
11. Wyoming
Wyoming is another state with low real estate taxes. In Wyoming, the effective property tax rate is 0.61%.
Wyoming’s median home value is $237,900, leading to a median property tax of $1,442. However, Wyoming’s vehicle tax rate is relatively high at 1.80%, leading to an annual tax of $472 on a $26,000 car.
| Wyoming | Value |
| Property Tax Rate | 0.61% |
| Median Home Value | $237,900 |
| Annual Property Tax | $1,442 |
| Vehicle Tax Rate | 1.80% |
12. Arkansas
Arkansas also has low real estate taxes. It has an effective property tax rate of 0.62%.
You can stretch your dollar in Arkansas, since Arkansas also has a low median home value of $142,10. Which means a property tax of $878 a year for a home priced at the median home value.
Arkansas does charge an annual car tax. Arkansas vehicle tax has an effective rate of 1.02%, meaning the annual tax on a $26,000 car would be approximately $267.
| Arkansas | Value |
| Property Tax Rate | 0.62% |
| Median Home Value | $142,100 |
| Annual Property Tax | $878 |
| Vehicle Tax Rate | 1.02% |
12. Arizona
Arizona is a state with low real estate taxes. Arizona’s effective property tax rate is also 0.62%.
Arizona has a median home value is $265,600, which means a property tax of $1,648 a year.
Similar to West Virginia, Arizona’s effective vehicle tax rate is 1.68%, equating to an annual tax of $440 on a $26,000 car.
| Arizona | Value |
| Property Tax Rate | 0.62% |
| Median Home Value | $265,600 |
| Annual Property Tax | $1,648 |
| Vehicle Tax Rate | 1.68% |
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Comparing Hawaii Property Tax vs. New Jersey Property Tax
Let’s compare the states with the highest property taxes versus the state with the lowest property taxes. Hawaii has the lowest effective real estate tax rate in the US of 0.28% and New Jersey has the highest effective property tax rate in the US of 2.47%.
This translates to an annual tax of approximately $700 on a home valued at $244,900 in Hawaii. However, given the high median home value in Hawaii, which is $662,100, homeowners typically pay about $1,893 in annual property taxes, even though the rate is relatively low.
On the other end, New Jersey has the highest effective property tax rate in the U.S. As a result, homeowners in New Jersey pay significantly higher property taxes – around $6,057 annually on a home valued at $244,900.
New Jersey’s median home value is $355,700, which means that homeowners typically face a hefty annual property tax bill of approximately $8,797.
That means if a home is valued at $244,900, you will pay only $700 in annual property taxes in Hawaii versus $6,057 in annual property taxes in New Jersey! That’s a big difference!
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