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Here Are the15 Best States for Property Taxes

Homeowners in some states face much steeper property tax bills than others.

By Sarah Sharkey

Edited by Esther Carlstone

Updated Dec. 26, 2024

Owning a home comes with many expenses attached, including property taxes. While they’re an unavoidable part of life for most homeowners, the amount you can expect to pay for this varies widely from state to state.

If you’re considering making a homeowner move, make sure to pay close attention to these 15 states with the lowest property taxes.

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Hawaii

Hawaii homeowners enjoy the lowest effective real estate tax, at 0.27%. While the tax rate is relatively low, Hawaii’s relatively high real estate values mean homeowners are still forking over substantial sums in property taxes, with a median real estate tax of $2,079.

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Alabama

Alabama’s effective real estate tax rate is 0.36%. With median home values of $203,300, Alabama homeowners pay around $808 per year in property taxes making it one of the most affordable states to live in.

Nevada

In the Silver State, homeowners face an effective real estate tax rate of 0.44% for owner-occupied housing.

While Nevada doesn’t have an estate tax, it does have a 6.85% sales tax rate.

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Colorado

Centennial State homeowners will find a 0.45% effective property tax rate for owner-occupied housing.

While that’s a relatively low property tax, the average local and state sales tax rates are a combined 7.81%.

Utah

Utah homeowners face a 0.47% effective property tax rate for owner-occupied housing.

But the state also has a 4.55% flat income tax rate across all individual incomes, which is on the higher end of the spectrum.

South Carolina

South Carolina homeowners will find an effective property tax rate of 0.46% on owner-occupied housing. In addition to property taxes, the state levies income taxes ranging from 0% to 6.40%, the percentage you owe varies based on your income.

Depending on where you fall on the income scale, you might enjoy paying relatively little in income taxes in this state.

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Arizona

The effective property tax rate for owner-occupied housing in the Grand Canyon State is 0.45%. In addition to property taxes, individuals in Arizona face a flat 2.50% income tax rate across all incomes.

While property taxes are relatively low, the average combined state and local sales taxes reach 8.38%, which is relatively high.

Idaho

Idaho homeowners face an effective property tax rate of 0.47% on owner-occupied housing. In addition to property taxes, all Idaho residents contend with a flat 5.8% income tax.

Overall, Idaho residents enjoy some of the lowest taxes across the board.

West Virginia

The effective property tax rate for owner-occupied housing in West Virginia is 0.55%.

In addition to property taxes, residents of the state also pay an income tax ranging from 2.36% to 5.12%, which is on par with many other states.

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Delaware

For homeowners in Delaware, the effective property tax rate for owner-occupied housing is 0.48%. Beyond property taxes, state residents also pay an individual income tax ranging from 2.20% to 6.60%.

Luckily for Delaware residents, there is no sales tax, which helps lower their overall tax burden.

Wyoming

Cowboy State homeowners face an effective property tax rate of 0.55% for owner-occupied housing.

In addition to relatively low property taxes, Wyoming residents don’t have to pay an income tax. Plus, the average state and local sales tax is a relatively low 5.44%. Combined, this makes Wyoming one of the least-taxed states in the country.

Tennessee

Homeowners in the Volunteer State contend with a relatively low 0.48% effective property tax rate on owner-occupied housing.

Paired with relatively low property taxes, residents of Tennessee don’t face an individual income tax. But the average combined state and local sales tax rate makes up for the savings at a high 9.55%, the second highest in the nation.

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Louisiana

Bayou State homeowners face an effective property tax rate of 0.51%. In addition to property taxes, Louisiana residents pay an income tax ranging from 1.8% to 4.25%, which tends to be on the low end for residents of most income levels.

While property taxes and income taxes are relatively low, the average combined state and local sales tax rate is a high 9.56%, the highest in the nation.

Arkansas

Arkansas homeowners pay an effective property tax rate of 0.53% on owner-occupied housing.

In addition to property taxes, Arkansas residents face a 9.45% combined average sales tax, which is the third highest in the nation.

North Carolina

Tar Heel State homeowners face an effective property tax rate of 0.63% on owner-occupied housing.

In addition to property taxes, residents of North Carolina pay a flat 4.50% individual income tax rate, which is somewhat middle-of-the-road for states with an income tax.

Bottom line

When it comes to property taxes, homeowners in some states enjoy relatively low rates. However, depending on the state, these relatively affordable property taxes are often balanced by higher individual income taxes and sales tax rates.

Taking the time to understand the tax situation in your area allows you to have a better idea of how much of your income is needed to cover your tax bills. If you want to build up an investment portfolio to help you cover tax bills, start investing today.

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