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States With the Lowest Property Taxes (2026)

Effective tax rates and median annual bills for all 50 states, ranked from lowest to highest.

Property tax rates vary dramatically across the United States. Hawaii homeowners pay an effective rate of just 0.29% of their home's value, while New Jersey homeowners pay 2.23% — nearly eight times as much. Understanding the difference between the nominal tax rate and the effective rate is key: the effective rate accounts for how states assess property value and what exemptions they offer, making it the most accurate way to compare states.

The table below ranks all 50 states by effective property tax rate. We also show the median annual property tax bill, which reflects both the rate and local home prices. A low rate in a high-cost market can still mean a large annual check.

10 States With the Lowest Property Tax Rates

Hawaii

0.29% effective rate · ~$1,893/yr median

Alabama

0.41% effective rate · ~$895/yr median

Colorado

0.51% effective rate · ~$2,017/yr median

Louisiana

0.55% effective rate · ~$983/yr median

South Carolina

0.57% effective rate · ~$1,024/yr median

West Virginia

0.58% effective rate · ~$698/yr median

Nevada

0.59% effective rate · ~$1,660/yr median

Arizona

0.60% effective rate · ~$1,648/yr median

Wyoming

0.61% effective rate · ~$1,507/yr median

Delaware

0.62% effective rate · ~$1,709/yr median

All 50 States Ranked by Property Tax Rate

#	State	Effective Rate	Median Annual Tax
1	HawaiiHI	0.29%	$1,893
2	AlabamaAL	0.41%	$895
3	ColoradoCO	0.51%	$2,017
4	LouisianaLA	0.55%	$983
5	South CarolinaSC	0.57%	$1,024
6	West VirginiaWV	0.58%	$698
7	NevadaNV	0.59%	$1,660
8	ArizonaAZ	0.60%	$1,648
9	WyomingWY	0.61%	$1,507
10	DelawareDE	0.62%	$1,709
11	ArkansasAR	0.63%	$1,286
12	UtahUT	0.63%	$2,191
13	MississippiMS	0.65%	$1,014
14	New MexicoNM	0.66%	$1,557
15	IdahoID	0.69%	$2,182

Effective rates are median estimates based on Tax Foundation and WalletHub data. Rates vary by county and assessment year — verify with your local tax authority.

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Frequently Asked Questions

What state has the lowest property taxes?

Hawaii has the lowest effective property tax rate in the United States at approximately 0.29% of home value. However, because Hawaii home values are very high, the median annual tax bill is still nearly $1,900. Alabama has the lowest median annual property tax bill at around $895, making it the most affordable in absolute dollar terms.

Does Hawaii really have the lowest property tax rate?

Yes — Hawaii's effective property tax rate is the lowest in the nation, around 0.29%. This is largely because Hawaii funds public education primarily through state income and general excise taxes rather than local property taxes. Local governments therefore have less need to levy high property tax rates.

Why do some states have lower property tax rates?

States with lower property tax rates tend to fund local services (schools, infrastructure) through other revenue sources such as state income taxes, sales taxes, or natural resource revenues. Wyoming, for example, benefits from significant oil and gas severance taxes that reduce the pressure on property owners. Tourism-heavy states like Hawaii and Nevada also rely heavily on other tax bases.

Are low property tax states always better for homeowners?

Not necessarily. Low property taxes often come with trade-offs: higher state or local income taxes, higher sales taxes, or reduced public services. Additionally, states with very high home values (like California and Hawaii) may have low rates but still result in sizable annual tax bills. Always look at your total tax burden — not just property taxes in isolation.

How is the effective property tax rate calculated?

The effective property tax rate is the median annual property tax paid divided by the median home value in a state. It normalizes for different assessment practices — some states assess at 100% of market value, others at a fraction — making cross-state comparisons more meaningful than comparing nominal rates.

Information is for reference only. Tax rates and laws vary by jurisdiction — consult your local assessor's office or a tax professional for advice specific to your situation.