10 States with the Lowest Property Taxes (2025)
The 10 US states with the lowest property tax rates in 2025, including effective rates, median tax bills, and what you need to know before relocating.
Why Property Taxes Vary So Much
Property tax rates vary enormously across the US because they're set locally, not federally. States with no income tax (like Texas and Florida) often have higher property taxes to compensate. States with strong income taxes (like California) can afford lower property tax rates. Understanding this tradeoff is essential when comparing the total tax burden of different states.
The 10 Lowest Property Tax States
1. Hawaii (0.28%) — Hawaii's low rate is partly offset by very high home values. The median annual tax bill is about $1,971, but on a median home value of $700,000+.
2. Alabama (0.41%) — Alabama has both low rates and low home values, creating some of the smallest absolute property tax bills in the nation. Median annual bill: $587.
3. Colorado (0.51%) — Despite rapidly rising home values, effective rates remain low. Median annual bill: $1,647.
4. Louisiana (0.55%) — Louisiana's homestead exemption (first $75,000 of value exempt for primary residences) dramatically reduces bills for owner-occupants. Median annual bill: $832.
5. South Carolina (0.57%) — SC's 4% assessment ratio for primary residences keeps owner-occupant bills low. Median annual bill: $924.
6. West Virginia (0.58%) — Low home values and low rates combine for some of the smallest bills in the nation. Median annual bill: $698.
7. Wyoming (0.61%) — No state income tax and low property taxes make Wyoming attractive for high-income earners. Median annual bill: $1,380.
8. Arkansas (0.62%) — Low rates and low home values. Median annual bill: $743.
9. Utah (0.63%) — Despite rapidly rising home values, Utah's effective rate remains low. Median annual bill: $1,837.
10. Arizona (0.63%) — Arizona's assessment ratio for residential property keeps effective rates low. Median annual bill: $1,648.
The Total Tax Picture
When evaluating a state's tax burden, consider all taxes together: income tax, sales tax, and property tax. Texas has no income tax but property taxes averaging 1.74%. California has high income taxes but property taxes capped at 1% by Proposition 13. The "best" state depends on your income level and home value.