States With the Lowest Property Taxes in 2026

Property taxes play a major role in how affordable homeownership feels, especially in states where rates run higher than average. Some states stand out at the extremes: Illinois currently has the highest effective property tax rate at 1.92%, while Hawaii sits at the bottom with a rate of just 0.27%. If you’re interested in where homeowners face the lightest tax burdens compared to home values, here’s a look at the 10 states with the lowest property tax rates in the country.

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 median effective property tax rate in the country. All of the data below comes from the Census Bureau’s 2024 1-year American Community Survey (ACS). The following property tax rates represent the median annual tax bill as a percentage of the median home value in each state.

1. Hawaii

Hawaii has the lowest effective property tax rate in the U.S. at 0.27%, thanks to the highest median home value in the country ($875,900) and median real estate taxes of $2,385 per year. A typical home in the Aloha State is worth more than three times the median home in Illinois ($280,700), which has the nation’s highest effective property tax rate (1.92%).

2. Alabama

Alabama is generally one of the more affordable states in the country. At 0.38%, it has the second-lowest effective property tax rate nationwide and a median home value of $233,300, which is nearly $130,000 lower than the U.S. median home value ($360,600). The median homeowner pays just $890 per year in real estate taxes.

T-3. Idaho

Idaho has the third-lowest property tax rate at 0.43%. Its home median value is $446,400, which is 14th-highest in the nation. Homeowners in the Gem State pay $1,912 annually in median real estate taxes.

T-3. Arizona

Arizona is tied with Idaho for the third-lowest effective property tax rate in the nation (0.43%). The home median value of $426,000 in this state, however, is more than $65,000 higher than the median value in the U.S. However, homeowners in the Grand Canyon State pay $1,828 in median real estate taxes annually, which is almost $1,400 less than the national median.

T-5. South Carolina

The Palmetto State is tied for the fifth-lowest property tax rate in the nation at 0.45%. Generally an affordable state, the median home value in South Carolina is $299,500. The typical homeowner in this state pays $1,337 annually in property taxes, which is almost $2,000 less than what the median homeowner pays nationwide.

T-5. Tennessee

The Volunteer State is tied with South Carolina with an effective property tax rate of 0.45%. The median home value and median real estate taxes paid in Tennessee are slightly higher than in South Carolina at $332,600 and $1,488, respectively.

T-7. Nevada

Nevada has the seventh-lowest property tax rate in the nation (0.47%). The $455,500 median home value in this state is over $100,000 higher than the national median. However, homeowners in the Silver State pay $2,143 in median real estate taxes annually, which is nearly $1,100 less than the median American homeowner.

T-7. Delaware

At 0.47%, Delaware is tied with Nevada for the seventh-lowest property tax rate in the country. The state’s median home value is $371,600, which is slightly above the national median home value of $360,600. The median homeowner in The First State pays just $1,750 in real estate taxes each year.

T-9. Utah

Utah’s 0.49% effective property tax rate is tied for ninth-lowest in the country. While property taxes are lower here than the national median, the median home value is the seventh-highest in the U.S. ($545,200). The median homeowner in the Beehive State pays $2,648 annually in real estate taxes, which is roughly $560 less than what Americans typically pay nationwide.

T-9. Colorado

Colorado is tied with neighboring Utah with an effective property tax rate of 0.49%. Its median home value of $574,600 is the sixth highest in the country after Hawaii, California, the District of Columbia, Massachusetts and Washington. Homeowners in the Centennial State pay $2,828 annually in median real estate taxes.

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 2024 1-year American Community Survey (ACS) Estimates.

State Name	Median Home Value	Median Property Taxes Paid	Effective Property Tax Rate
USA	$360,600	$3,211	0.89%
Alabama	$233,300	$890	0.38%
Alaska	$376,500	$3,976	1.06%
Arizona	$426,000	$1,828	0.43%
Arkansas	$215,600	$1,113	0.52%
California	$759,500	$5,369	0.71%
Colorado	$574,600	$2,828	0.49%
Connecticut	$396,900	$6,573	1.66%
Delaware	$371,600	$1,750	0.47%
District of Columbia	$733,400	$4,594	0.63%
Florida	$396,900	$2,993	0.75%
Georgia	$343,300	$2,554	0.74%
Hawaii	$875,900	$2,385	0.27%
Idaho	$446,400	$1,912	0.43%
Illinois	$280,700	$5,399	1.92%
Indiana	$243,500	$1,798	0.74%
Iowa	$227,300	$2,937	1.29%
Kansas	$238,700	$2,983	1.25%
Kentucky	$226,000	$1,611	0.71%
Louisiana	$223,200	$1,187	0.53%
Maine	$341,900	$3,103	0.91%
Maryland	$436,300	$4,144	0.95%
Massachusetts	$607,400	$6,080	1.00%
Michigan	$254,200	$2,988	1.18%
Minnesota	$344,600	$3,501	1.02%
Mississippi	$186,500	$1,221	0.65%
Missouri	$254,400	$2,021	0.79%
Montana	$425,400	$2,939	0.69%
Nebraska	$263,100	$3,739	1.42%
Nevada	$455,500	$2,143	0.47%
New Hampshire	$458,800	$6,707	1.46%
New Jersey	$496,000	$9,358	1.89%
New Mexico	$279,900	$1,776	0.63%
New York	$449,800	$6,542	1.45%
North Carolina	$333,000	$2,044	0.61%
North Dakota	$266,100	$2,550	0.96%
Ohio	$239,800	$2,937	1.22%
Oklahoma	$222,100	$1,672	0.75%
Oregon	$497,500	$3,895	0.78%
Pennsylvania	$277,600	$3,214	1.16%
Rhode Island	$455,700	$4,886	1.07%
South Carolina	$299,500	$1,337	0.45%
South Dakota	$289,600	$2,940	1.02%
Tennessee	$332,600	$1,488	0.45%
Texas	$313,200	$4,108	1.31%
Utah	$545,200	$2,648	0.49%
Vermont	$352,800	$5,026	1.42%
Virginia	$403,500	$2,872	0.71%
Washington	$602,200	$4,729	0.79%
West Virginia	$170,800	$881	0.52%
Wisconsin	$294,700	$3,680	1.25%
Wyoming	$339,500	$1,947	0.57%

Bottom Line

A senior comparing his property tax rate with other states.

When preparing to buy a home, you must account for how much you will pay in property taxes, which vary nationwide depending on your location. As an example, homeowners in New Jersey pay $9,358 annually, which is the highest median tax bill in the country and nearly three times the national median ($3,211). Conversely, homeowners in West Virginia pay only $881 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 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.