Top 25 States With the Lowest Property Tax Rates

Understanding property tax rates is crucial for homeowners, especially those looking to save on their yearly expenses. In this article, we’ll explore the top 25 states with the lowest property taxes, providing insights into what makes these states particularly affordable.

Lowest Property Tax States in the U.S.

1. Hawaii

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Hawaii offers the lowest property tax rate in the country at just 0.28%. Despite the high property values, the low rate helps keep annual tax bills relatively affordable.

2. Alabama

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Alabama’s effective property tax rate is 0.41%, making it one of the most affordable states for homeowners in terms of property taxes. The state also offers various property tax breaks for eligible residents.

3. Colorado

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With an effective property tax rate of 0.51%, Colorado ranks third. The state’s higher home values mean the actual tax bills can be higher than in other states with similar rates.

4. Nevada

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Nevada has a property tax rate of 0.55%. The state benefits from a relatively high median home value, keeping the overall tax burden low.

5. Louisiana

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Louisiana’s rate stands at 0.56%. The state’s property tax exemptions and lower median home values contribute to the low tax bills.

6. South Carolina

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South Carolina also has a rate of 0.56%, benefiting from lower home values and significant tax breaks for seniors.

7. Delaware

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With an effective tax rate of 0.58%, Delaware offers affordable property taxes, especially considering its higher-than-average home values.

8. Utah

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Utah’s rate is 0.58%, supported by a high median home value which balances the low tax rate.

9. West Virginia

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West Virginia has a property tax rate of 0.59%, with low home values making the tax bills very affordable.

10. Wyoming

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Wyoming’s effective tax rate is 0.61%. The state’s low taxes are complemented by property tax caps that help keep assessments stable.

11. Arizona

Arizona’s rate of 0.62% is among the lowest, particularly beneficial due to the state’s high home values.

12. Arkansas

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Arkansas also has a rate of 0.62%, with low median home values contributing to affordable property tax bills.

13. Idaho

Idaho’s effective property tax rate stands at 0.63%, with relatively high home values keeping the annual tax bills manageable.

14. Tennessee

Tennessee’s rate is 0.66%, with various exemptions available for seniors and other eligible residents.

15. California

California offers a property tax rate of 0.74%, supported by high home values and a tax system that limits increases in assessed values.

16. Mississippi

Mississippi’s rate is 0.79%, with very low home values contributing to some of the lowest property tax bills in the country.

17. New Mexico

New Mexico has a rate of 0.80%, with property tax breaks and low home values making it an affordable state for homeowners.

18. North Carolina

North Carolina’s effective property tax rate is 0.80%, balancing moderate home values with the low tax rate.

19. Virginia

Virginia’s property tax rate stands at 0.82%, with high home values contributing to a higher average tax bill despite the low rate.

20. Indiana

Indiana’s effective property tax rate is 0.83%, with low home values helping to keep tax bills affordable.

21. Montana

Montana’s rate is 0.83%, supported by relatively high home values.

22. Kentucky

Kentucky has a property tax rate of 0.85%, with various exemptions available to eligible homeowners.

23. Florida

Florida’s effective property tax rate is 0.86%, with high home values balancing the low tax rate.

24. Georgia

Georgia offers a property tax rate of 0.90%, with moderate home values contributing to affordable tax bills.

25. Oklahoma

Oklahoma’s rate stands at 0.90%, with property tax caps and various exemptions keeping the tax bills low.

Top 25 States With the Highest Property Tax

Property taxes play a significant role in overall home affordability. States with the highest property tax rates can add substantial costs to homeownership. In this article, we’ll explore the top 25 states with the highest property taxes, providing insights on what makes these states particularly costly. Read more.

Understanding property tax rates is essential for making informed decisions about homeownership. The states listed above offer some of the lowest property tax rates in the U.S., making them attractive for potential homeowners looking to minimize their annual expenses.