10 States With the Lowest Property Taxes

Property taxes are collected in all 50 states and the District of Columbia and are a key source of local government revenue. Governments use property taxes to fund schools, roads, parks, public transportation and payroll for municipal employees. 

Depending on where you live in the U.S., your property taxes might barely make a dent in your budget; or, they might be just as high as your rent or mortgage. The benefits of living somewhere with low property taxes are that monthly home payments are lower, making payments less of a burden and home ownership more affordable. 

In order to determine which states had the lowest property taxes, we obtained data from the Tax Foundation’s facts and figures sheet from 2022, which calculated effective property tax rates, which is the total real estate taxes divided by total home value. 

Keep reading to discover the 10 states with the lowest effective property tax rates in the U.S., as well as each state’s median home value. 

Also, here are the states with the highest property taxes.

• Effective Property Tax Rate (2020): 0.60%
• Median Home Value (2023): $412,244
• Property Tax Collections Per Capita: $1,041

Coming in at No. 10 on our list, the state with vibrant nightlife and the famous Vegas Strip also features a low effective property tax rate. While Nevada’s rate is the highest on this list, this state features no income taxes and a lower overall tax burden for residents. Surrounded by desert landscapes, homes in Nevada have access to brilliant views and lots of nearby activity opportunities.

• Effective Property Tax Rate (2020): 0.59%
• Median Home Value (2023): $358,686
• Property Tax Collections Per Capita: $967

Known for its beautiful beaches, Delaware is not only a scenic place to live but also an affordable one. The state has no sales tax and the ninth-lowest property taxes in America. This state’s median home value falls on the higher end of the scale compared to other states on this list — likely due to its many beach-front homes.

• Effective Property Tax Rate (2020): 0.59%
• Median Home Value (2023): $506,072
• Property Tax Collections Per Capita: $1,153

Utah residents have some of the highest housing rates on this list. While Utah might feature expensive housing, this state is filled with wilderness, recreational options and a great climate with warm summers and reasonably cold winters. The state also features the lowest poverty rate on this list, at a mere 7.5, according to Statista.

• Effective Property Tax Rate (2020): 0.56%
• Median Home Value (2023): $325,091
• Property Tax Collections Per Capita: $2,062

If rural living and a slower pace of life are up your alley, Wyoming is a great place to find affordable housing. With the effective property rate in this state at 0.56%, residents can enjoy more time outdoors and less financial stress. While the average home value is not as low as others on this list, Wyoming features no income tax and is one of the top 20 states with low costs of living in the U.S., according to the Missouri Economic Research and Information Center. 

• Effective Property Tax Rate (2020): 0.56%
• Median Home Value (2023): $273,977
• Property Tax Collections Per Capita: $1,272

Known for its warm and friendly Southern hospitality, South Carolina also features one of the lowest property tax rates in the nation. With this state’s effective property tax increase just 0.01% more than West Virginia, it remains a great option for people looking to live somewhere with lower property taxes. Full of gorgeous mountains and beaches, this state is one of the five cheapest states on this list for buying a home.

• Effective Property Tax Rate (2020): 0.55%
• Median Home Value (2023): $146,578
• Property Tax Collections Per Capita: $963

Homeowners will be thrilled to hear that West Virginia features the lowest median home value on this list. Not only does this state feature affordable homes, but it also allows residents to enjoy the low effective property tax rate of 0.55%. The state also features lower everyday costs of groceries and transportation than many others in the U.S.

• Effective Property Tax Rate (2020): 0.54%
• Median Home Value (2023): $539,640
• Property Tax Collections Per Capita: $1,816

While Colorado features the same low effective property tax rate as Louisiana (0.54%), the state’s far higher median home value makes living in Colorado less affordable. Aside from Hawaii, this state features the most expensive housing on this list. If living in a state surrounded by beautiful mountainous scenery is up your alley, be sure to prepare for the high housing costs that accompany the low property taxes. 

• Effective Property Tax Rate (2020): 0.54%
• Median Home Value (2023): $182,959
• Property Tax Collections Per Capita: $925

Coming in at No. 3 on our list, Louisiana is also a great place to live if you are looking for low property taxes and affordable homes. Although the effective property tax rate in this state is 0.15 percentage points higher than in Alabama, the lower median home value accommodates this slight tax increase. Louisiana’s poverty rate (17.3%) is the second highest in the U.S., according to Statista. 

• Effective Property Tax Rate (2020): 0.39%
• Median Home Value (2023): $206,044
• Property Tax Collections Per Capita: $620

Alabama is a very affordable state for homeowners, featuring both low property taxes and low home prices. This state also has a high number of residents living in poverty — 14.5% in 2021, according to Statista. However, if you are looking to save on your home and tax costs, moving to Alabama might be a financially savvy move for you. 

• Effective Property Tax Rate (2020): 0.31%
• Median Home Value (2023): $834,583 
• Property Tax Collections Per Capita: $1,455

Hawaii residents enjoy the lowest property tax rate in the U.S. However, the high cost of living and limited housing opportunities make it a very expensive place to live. The median home value falls at $834,583 — the highest on this list. Hawaii residents also face extremely high costs on everyday items.