{"id":27732,"date":"2021-09-30T09:09:59","date_gmt":"2021-09-30T16:09:59","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=27732"},"modified":"2026-04-21T05:48:31","modified_gmt":"2026-04-21T12:48:31","slug":"states-with-no-property-taxes","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/states-with-no-property-taxes\/","title":{"rendered":"Are There Any States With No Property Taxes? The Top 10 Cheapest"},"content":{"rendered":"

Per U.S. Census Bureau data, the average American homeowner spends $2,471 on property taxes every year<\/a>. However, the median amount paid in real estate taxes varies drastically depending on the state. For example, on average Alabama residents paid only $587 annually while New Jersey residents shelled out $8,362.<\/p>\n

There\u2019s a common misconception that there are states with no property taxes. While this isn\u2019t exactly true, there are states where homeowners pay very little.<\/p>\n

To give you insight on how some states have next-to-no property taxes, we spoke with an experienced certified public accountant (CPA) and created this detailed list of states with the lowest property taxes.<\/p>\n

\"Houses<\/a>
Source: (Fer Troulik \/ Unsplash)<\/figcaption><\/figure>\n

States don\u2019t levy real estate property taxes, local governments do<\/h2>\n

While property taxes may be outlined under State Law, county and municipal governments<\/a> are the ones that levy them.<\/p>\n

Zach Reece<\/a>, CPA and the owner and COO of roof repair company Colony Roofers<\/a> in Atlanta, GA, explains that \u201cproperty taxes are levied from all property owners within a given area based on the value of their property and the needs of the local government that receives the tax revenue.\u201d<\/p>\n

This means that real estate property taxes aren\u2019t included in the payments you make on your state or federal tax returns. In most cases, homeowners pay their local property taxes<\/a> as part of their monthly mortgage payments or directly to their local tax office.<\/p>\n

Effective tax rates offer a state-level average<\/h3>\n

Because property taxes are charged by local governments, the rate homeowners pay differs depending on where they live within a state.<\/p>\n

However, we can calculate the average property tax for a given state by looking at effective tax rates on owner-occupied housing. Effective tax rates<\/a> are the average amount that homeowners across a state pay in property taxes, expressed as a percentage of the value of a home. To find out your individual tax rate, divide your annual property tax bill by the estimated value of your property.<\/p>\n

States with the lowest property taxes<\/h2>\n

Let\u2019s take a look at the ten states with the lowest effective property tax rates. Each rate is calculated by using current U.S. Census data and dividing the median home value<\/a> by the median property tax paid<\/a>.<\/p>\n

1. Hawaii<\/h3>\n

Median property tax rate: 0.28%<\/a><\/h4>\n

While the cost of living in Hawaii is high<\/a>, property taxes are very low. The cheapest of its five counties, Honolulu, has an average rate of 0.38% while the most expensive, Hawaii County, has an average rate of just 0.9%.<\/p>\n

These low tax rates still leave Hawaii counties with plenty of money, as the state\u2019s median home price is $691,360<\/a> \u2014 82% higher than the national average. Additionally, out-of-state property owners pay more, with an average rate of 0.83%<\/a>.<\/p>\n

2. Alabama<\/h3>\n

Median property tax rate: 0.40%<\/a><\/h4>\n

Living in Alabama is relatively inexpensive<\/a> and the median home price is also below the national average. This makes Alabama a great place to live for people looking to save money or retire on a fixed income.<\/p>\n

3. Colorado<\/h3>\n

Median property tax rate: 0.49%<\/a><\/h4>\n

Colorado has a cost of living that\u2019s just over the national average<\/a>, and home prices that exceed the national average by about 27%<\/a>.<\/p>\n

One reason that Colorado\u2019s property taxes are so low is because the state passed the Gallagher Amendment<\/a> in 1982, limiting the amount of a home\u2019s value that is subject to property tax to 45%.<\/p>\n

4. Louisiana<\/h3>\n

Median property tax rate: 0.53%<\/a><\/h4>\n

Louisiana\u2019s cost of living is around 7% lower and home prices are around 52% lower than the national average. A big factor influencing the state\u2019s low property tax rate is its generous homestead exemption<\/a>, which gives homeowners a break on the first $75,000 of their home\u2019s value.<\/p>\n

\"A<\/a>
Source: (Katie Musial \/ Unsplash)<\/figcaption><\/figure>\n

5. Nevada<\/h3>\n

Median property tax rate: 0.53%<\/a><\/h4>\n

Home prices in Nevada are just under the national average<\/a> while the cost of living is slightly above average<\/a>. The state\u2019s low property taxes are partly due to an abatement<\/a>, capping owner-occupied residential property taxes at 3%.<\/p>\n

6. District of Columbia<\/h3>\n

Median property tax rate: 0.56%<\/a><\/h4>\n

Like Louisiana, Washington, D.C. also has a homestead exemption. D.C.\u2019s exemption<\/a> functions similarly, but exempts $75,700 instead of $75,000. Additionally, homeowners who are over the age of 65 who earn under $134,500 can apply to have their property taxes reduced by half.<\/p>\n

7. South Carolina<\/h3>\n

Median property tax rate: 0.55%<\/a><\/h4>\n

South Carolina gives its residents lower property tax rates by making a distinction<\/a> between owner-occupied residences and other properties. For properties occupied by the owner, the assessment rate is 4%, while rental, second, and investment properties are assessed at 6%.<\/p>\n

8. Delaware<\/h3>\n

Median property tax rate: 0.56%<\/a><\/h4>\n

While home values and cost of living are just about average, Delaware is often seen as a tax haven for retirees<\/a>, especially from the neighboring state of New Jersey. This is largely because Delaware maintains their low property tax rate by enacting relatively high income taxes<\/a>, making out at 6.6%<\/p>\n

9. West Virginia<\/h3>\n

Median property tax rate: 0.57%<\/a><\/h4>\n

West Virginia has an average home value of $119,600<\/a>, less than half of the national average. Furthermore, the cost of living is about 10% less than most states. Combined with low property taxes and exemptions for seniors and disabled individuals<\/a>, West Virginia is definitely an affordable place to own a home.<\/p>\n

10. Wyoming<\/h3>\n

Median property tax rate: 0.57%<\/a><\/h4>\n

Rounding out the bottom of our list is Wyoming. Wyoming has fairly average home prices<\/a> and a slightly lower cost of living<\/a> (based on meric.mo.gov data series<\/a>) than most states, but property taxes are very low. Rates are generally this low because the state only applies property taxes to 9.5% of the total value<\/a> of residential properties.<\/p>\n

\"A<\/a>
Source: (Helena Lopes \/ Unsplash)<\/figcaption><\/figure>\n

Homeowner tax breaks help lower the bill<\/h2>\n

Even if you don\u2019t live in one of these states, you still might be able to save on your annual tax bill by making use of exemptions, deductions, and other homeowner tax breaks. Here\u2019s some common ways for homeowners to save come tax time:<\/p>\n