10 States With the Lowest Property Taxes

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  • Homeowners pay property taxes based on a property's assessed value.
  • The average property tax rate in the United States as a whole is 1.10%.
  • Average property taxes vary by state from 0.28% to 2.49%.

The state you live in makes a big difference for your property taxes.

For homeowners, property taxes are a fact of life. Whether your home is paid off or not, you will need to pay to your state and local municipality. The amount you pay is determined in a property tax assessment, and the U.S. average taxation rate is 1.10%.

Although there's no avoiding property taxes, they're much cheaper in certain areas than others. By state, the average ranges from as low as 0.28% to as high as 2.49%.

If you're thinking of moving, and you want to compare how much different states charge on average, you'll find the states with the lowest property taxes below. This list also includes the typical housing prices by state, a value provided by Zillow's Home Value Index (ZHVI), for an idea of how much homes cost in each one.

1. Hawaii

  • Property tax: 0.28%
  • Typical home price: $1,038,544

Hawaii has the lowest property taxes in the country. It's everything else that's expensive here, starting with housing. The typical home price is over $1 million, the highest in the United States and nearly three times the country's typical home price. With such costly housing, choosing the best mortgage lender is a must for anyone considering moving here. Groceries, utilities, and transportation all cost more than average in Hawaii as well.

2. Alabama

  • Property tax: 0.41%
  • Typical home price: $204,965

Alabama is one of the most affordable states to live in. Like many Southern states, it has low average home prices. Homeowners don't pay much in property taxes, either. Quality of life isn't the best, though, at least statistically speaking. When the Organization for Economic Cooperation and Development evaluated states by nine quality of life metrics, such as health, safety, and education, Alabama was third from the last.

3. Colorado

  • Property tax: 0.51%
  • Typical home price: $604,911

Colorado is another state where low property taxes are balanced out by high home prices. Housing costs went up quite a bit in 2021, and Colorado now has the sixth-highest typical home price in the country. This state is popular with outdoor enthusiasts because of its landscapes and mountains. It also has low income tax and corporation tax rates.

4. Louisiana

  • Property tax: 0.55%
  • Typical home price: $214,522

Louisiana has a low cost of living overall, including its property taxes, house prices, and everyday living expenses. It's one of the more diverse states, with a mix of people from all different cultures and backgrounds. While Louisiana is generally considered a fun, interesting place to live, it also has one of the highest poverty rates in the nation.

5. Washington, D.C.

  • Property tax: 0.56%
  • Typical home price: $826,124

Even though Washington, D.C. technically isn't a state, it does have its own property taxes, which are fairly low. That's where the savings end though, because it has the second-highest typical home price. On the bright side, the public transportation system in Washington, D.C. is considered one of the best in the United States. If you want to have a car-free life, this is a great place for it.

6. Delaware

  • Property tax: 0.57%
  • Typical home price: $355,181

The First State is also one of the smaller states, as Delaware has a population of just under one million. It has low property taxes, while home prices are close to the typical price in the United States. Property taxes aren't the only area where Delaware residents save money. The state also has no sales tax and retirement income exemptions, which makes it a popular place for retirees.

7. South Carolina

  • Property tax: 0.57%
  • Typical home price: $293,445

South Carolina is a popular choice for people looking for outdoor recreation and an affordable cost of living. It has a warm climate and offers plenty of outdoor activities. Housing is cheaper than average, and the low property taxes make it an even more attractive deal.

8. West Virginia

  • Property tax: 0.58%
  • Typical home price: $137,286

West Virginia is about as affordable as it gets in the United States. The Mountain State boasts cheap property taxes and the lowest typical home price. This state doesn't have any large cities and is primarily filled with more rural areas. The job market isn't the best, which could be an issue for anyone who isn't a remote worker.

9. Nevada

  • Property tax: 0.60%
  • Typical home price: $484,530

Nevada doesn't make managing taxes too difficult for its residents. It has the lowest property taxes in the western U.S., and it also doesn't have a state income tax. This state is most famous for its many attractions and recreational areas, including Las Vegas, Lake Tahoe, and Great Basin National Park.

10. Wyoming

  • Property tax: 0.61%
  • Typical home price: $320,939

Wyoming rounds out the list of 10 states with the lowest property taxes. It's also the state with the smallest population size, with fewer than 600,000 people, and the second-lowest population density ahead of only Alaska. This state is best for those who like small towns. It's remote, and there aren't any major metropolitan areas.

If you'd like to buy a home in a state with low property taxes, there are several options available. They run the gamut from tourist destinations and states with big cities to those with mostly rural areas, so there's a suitable option for just about anyone.

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