1. Alabama
Alabama homeowners enjoy the lowest property taxes in the nation, averaging just $718 a year.
In Alabama, property taxes are calculated based on an assessed value equal to just 10% of a home’s market value.
To tackle surging property taxes, Alabama lawmakers recently passed HB73. The new bill caps annual increases in assessed values for residential, commercial, farm, and timber properties at just 7%. If enacted, this bill would take effect from October 2024 to October 2027.
Average annual property tax: $718
2. West Virginia
With a median annual property tax of just $821, West Virginia is one place you might want to consider as a landlord or first-time homeowner.
Not only does this state boast the sixth lowest property tax rate at a mere 0.57%, but it also offers some of the most affordable homes in the country — the median home price sits comfortably at $268,580, the 12th lowest nationwide. This combination of low taxes and affordable housing makes West Virginia one of the best states for homeowners.
Average annual property tax: $821
3. Arkansas
In Arkansas, homeowners pay a median annual property tax of just $977, the third lowest in the country.
As of the latest data, Arkansas has a property tax rate of 0.64%, the 13th lowest among all the states. It is also the 7th most affordable housing market in the country, with a median home price of just $249,360.
Arkansas takes a unique approach by forgoing state-level property taxes, leaving local counties and cities to set whatever property tax rates they need to fund critical services like schools and road upkeep. This decentralized approach means that tax rates vary significantly in Arkansas depending on where you are in the state. But it still remains one of the states with the lowest property tax rates in the country.
Median home value: $249,360
Median effective property tax rate: 0.64%
Average annual property tax: $977
4. Louisiana
Louisiana is also one of the states with the lowest property tax rates in the country. In Louisiana, homeowners enjoy some of the lowest property taxes nationwide – just $1,127 on average. This is because of the state’s affordable median home value of $250,860 and a homeowner-friendly tax rate of just 0.56%.
Average annual property tax: $1,127
5. Mississippi
Mississippi offers more than just a rich history and warm hospitality. With a median property tax of just $1,161 and an effective rate of 0.67%, it ranks as the state with the fifth lowest tax burden on homeowners in the nation.
Homes here are affordable — the median home price in the state is the fourth lowest in the U.S., at just $244,100. This combination of inviting home prices and modest tax rates puts the Magnolia State at the forefront for those looking to stretch their dollars further in the U.S. housing market.
Median home value: $244,100
Median effective property tax rate: 0.67%
Average annual property tax: $1,161
6. South Carolina
In South Carolina, homeowners pay a median property tax of just $1,185.
With a median property tax rate of only 0.57%, South Carolina ranks as the state with the seventh lowest effective tax rate in the U.S.—a sweet deal considering the state’s high median home price of $375,680.
Homeowners in South Carolina enjoy a lower assessment ratio of just 4% on primary residences, and 6% for other properties. This helps keep their property taxes low.
Also, the proposed 2024 budget might slash property taxes further with a $500 million cut, translating to an average savings of $359 for homeowners—thanks to surplus sales tax revenues.
Average annual property tax: 1,185
7. Tennessee
If you’re assessing property tax by state in 2025, you’ll find Tennessee one of the most tax-friendly states for homeowners and landlords. In Tennessee, you’re looking at a pleasantly low median property tax of just $1,376.
With a tax rate of only 0.67% in 2023, Tennessee grabs the 15th spot for the lowest rates across the country.
Thanks to Tennessee’s approach to valuation, residential and farm properties get assessed at just 25% of their appraised value. This clever move helps make the tax burden a lot easier despite Tennessee’s high home values. It means that you’re taxed on just a quarter of your property’s worth.
Median home value: $378,520
Median effective property tax rate: 0.67%
Average annual property tax: $1,376
8. Kentucky
With a median property tax of just $1,456, Kentucky ranks as the eighth most affordable state for homeowners when it comes to taxes.
Kentucky’s average home price is only $254,220—the 10th lowest in the U.S. Plus, with a property tax rate of just 0.83%, the tax burden in the state is low.
Median home value: $254,220
Median effective property tax rate: 0.83%
Average annual property tax: $1,456
9. Indiana
With an average property tax rate of just 0.84%, Indiana ranks as the ninth most affordable state for property taxes. Homeowners here typically pay about $1,467 a year.
Indiana’s homes are a bargain too, with the median price sitting at $249,200 — the sixth lowest in the country. Low home prices coupled with low property taxes make Indiana a prime spot for homeowners and investors.
Median home value: $249,200
Median effective property tax rate: 0.84%
Average annual property tax: $1,467
10. Oklahoma
With a median property tax of just $1,501, Oklahoma ranks tenth on our list of states with the lowest property taxes. Plus, it boasts the third lowest median home price nationwide, at $238,600, keeping homeownership affordably within reach.
In Oklahoma, state laws cap the rise in assessed home values — limiting increases to just 3% for residential homesteads and agricultural lands, and a slightly higher cap of 5% for all other property types.
Median home value: $238,600
Median effective property tax rate: 0.89%
Average annual property tax: $1,501
11. Wyoming
In picturesque Wyoming, homeowners enjoy a low median property tax of just $1,609 – a surprise given the state’s median home price of $396,360. This is all thanks to Wyoming’s low property tax rate of just 0.56%.
Wyoming is also one of the few states that does not impose a state income tax, easing the tax burden for residents. Moreover, a new law in the state caps increases on single-family home valuations at just 4%.
Average annual property tax: $1,609
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1. Hawaii
Despite its reputation for high living costs, Hawaii has the nation’s lowest property tax rate at just 0.31%.
While home prices in the state are rising fast, homeowners in Hawaii get a break with a comparatively low property tax bill of just $2,092.
Median home value: $767,740
Median effective property tax rate: 0.31%
Average annual property tax: $2,092
2. Alabama
With a median effective rate of just 0.4%, Alabama offers the second lowest effective property tax rates in the nation.
In Alabama, not only are property taxes low, but homes are surprisingly affordable too. The average home costs about $274,280. Pair that with a low property tax rate, and you’re looking at an average annual tax bill of just $718. It’s no wonder Alabama is a top choice for both homeowners and landlords looking for a break on taxes.
Median home value: $274,280
Median effective property tax rate: 0.4%
Average annual property tax: $718
3. Colorado
Colorado ranks third on our list of states with the lowest property tax rates. The state has an effective property tax rate of 0.55%.
Property taxes in Colorado are calculated based on the assessed value of a property. This used to be set at just 7.15% of the home’s market value. But in 2020, after the repeal of the Gallagher Amendment, the Colorado legislature passed a series of bills to lower the residential assessment rate. The assessment rate in 2023 and 2024 is just 6.7%.
In addition to this, a portion of a home’s market value is always exempted from property taxes in Colorado. In 2023 and 2024, $55,000 of a home’s market value is exempted.
Despite the high property values across the state, the low tax rate, low assessment ratios and exemptions help keep property taxes comparatively low.
Median home value: $603,840
Median effective property tax rate: 0.55%
Average annual property tax: $2,422
4. Louisiana
Louisiana boasts the fourth lowest property tax rate in the nation at just 0.56%.
Homeowners in Louisiana enjoy some of the lowest property taxes around, with a median bill of just $1,127 annually. In certain counties, it gets even better – taxes can drop as low as $200.
One reason for Louisiana’s low property taxes is the state’s generous homestead exemption. This cuts $7,500 off the assessed value of all owner-occupied properties in the state.
Median home value: $250,860
Median effective property tax rate: 0.56%
Average annual property tax: $1,127
5. Wyoming
At just 0.56% (same as Louisiana), Wyoming has the fifth lowest property tax rate in the U.S. It ranks fifth because residents pay more than Louisiana in annual property taxes. Residential properties in Wyoming are valued at only 9.5% of their market price for tax purposes. This low valuation is a key reason why Wyoming’s property taxes are so affordable.
Median home value: $396,360
Median effective property tax rate: 0.56%
Average annual property tax: $1,609
6. West Virginia
West Virginia has a low property tax rate of just 0.57%. With the average home priced at $268,580 and annual taxes around $821, West Virginia rolls out the welcome mat for homeowners and landlords who want to save on taxes.
Median home value: $268,580
Median effective property tax rate: 0.57%
Average annual property tax: $821
7. South Carolina
South Carolina also boasts an effective property tax rate of just 0.57%. In South Carolina, if you’re living in your property (owner-occupied), you only get assessed at a 4% rate. Non-primary residences get assessed at 6%.
The state also has a rule that caps increases in a property’s market value at 15% during its five-year reappraisal cycle. This rule applies to all residential properties, unless you decide to make some major changes or sell the place.
Median home value: $375,680
Median effective property tax rate: 0.57%
Average annual property tax: $1,185
8. Utah
Utah is one of the states with the lowest property tax rates, with an effective rate of 0.57%. Despite having the 6th highest median home price in the country at $541,440, the state offers an exemption of 45% of market value on all primary residences, keeping the effective tax rate low.
As of 2023, the median property tax paid by homeowners in Utah was just $2,376, ranking 22nd lowest in the country. However, some taxation authorities in the state are considering property tax hikes.
Median home value: $541,440
Median effective property tax rate: 0.57%
Average annual property tax: $2,376
9. Nevada
Nevada homeowners enjoy a property tax rate of 0.59%. With a median property tax of $1,889 in 2023, Nevada ranks as the 17th most affordable state for property taxes.
Median home value: $446,700
Median effective property tax rate: 0.59%
Average annual property tax: $1,889
10. Delaware
Delaware has an effective property tax rate of 0.61%. Not to mention, the state doesn’t impose a sales tax, reducing your tax burden even further.
Median home value: $338,980
Median effective property tax rate: 0.61%
Average annual property tax: $1,635
11. The District of Columbia
Despite having the third-highest median home price at $647,600, D.C. offers some relief with a surprisingly low effective property tax rate of just 0.58%. However, given the steep home prices, homeowners still face a substantial median annual property tax bill – the 11th highest nationally, amounting to $4,114.
Median home value: $647,600
Median effective property tax rate: 0.62%
Average annual property tax: $4,114
