Property taxes are one of the major expenses that homeowners have to pay every year. Some states have lower property tax rates than others, which can save you thousands of dollars over time. Below, we will explore the 13 states with the lowest property taxes in the US. If you are looking for a state with low property taxes, you may want to consider moving to one of these 10 states.
Are you aged 65 years or older? Check out the States with No Property Taxes for Seniors
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 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.
| 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.
| 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.
| 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.
| 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.
| 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.
| Property Tax Rate | 0.56% |
| Median Home Value | $181,800 |
| Annual Property Tax | $1,024 |
| Vehicle Tax Rate | 2.63% |
Check out the Richest Towns in South Carolina
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.
| Property Tax Rate | 0.57% |
| Median Home Value | $635,900 |
| Annual Property Tax | $3,641 |
| Vehicle Tax Rate | 0.00% |
Check out the Richest Suburbs of Washington DC
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.
| 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.
| 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.
| 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.
| Property Tax Rate | 0.61% |
| Median Home Value | $237,900 |
| Annual Property Tax | $1,442 |
| Vehicle Tax Rate | 1.80% |
Check out the 18 Cheapest Places to Live in Florida
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.
| Property Tax Rate | 0.62% |
| Median Home Value | $142,100 |
| Annual Property Tax | $878 |
| Vehicle Tax Rate | 1.02% |
13. 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.
| Property Tax Rate | 0.62% |
| Median Home Value | $265,600 |
| Annual Property Tax | $1,648 |
| Vehicle Tax Rate | 1.68% |
Check out the Richest Towns in Arizona
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