9 States With the Lowest Property Tax (and Just 1 Pacific Entry)

In some places, property tax rates are so high that the bill feels like a second mortgage. Tanoy1412 / Shutterstock

Property taxes can feel like a second mortgage. But in some places, the annual bite is surprisingly small. These are the states with the lowest property tax rates, based on the effective property tax rate—the percentage of a home's market value homeowners pay each year.

Your property tax bill can vary significantly depending on where you live, what exemptions you qualify for, and how your local government funds public services like schools and emergency services.

Here's a look at where homeowners pay the least.

1. Hawaii: 0.27%

Hawaii has the lowest property tax rate in the country, with an average effective property tax rate of just 0.27 percent.

Despite its high property values, the median property tax bill remains relatively low. That’s because the state relies more on income and sales taxes for revenue.

Local governments offer property tax exemptions for senior citizens and primary residences.

2. Alabama: 0.38%

With a typical effective property tax rate of roughly 0.38 percent, Alabama offers one of the lowest property tax burdens in the U.S. The state uses homestead exemptions and property tax relief programs to help low-income homeowners and senior citizens.

Local tax assessors determine the official "assessed value" of each property, which often comes in below market value.

3. Colorado: 0.49%

The Centennial State keeps its average property tax rate at around 0.49 percent. Colorado offers property tax relief through senior exemptions and limits on annual increases.

Property taxes here help fund schools and other government services, but the state keeps the overall tax burden low.

4. South Carolina: 0.52%

With an effective property tax rate of 0.52 percent, South Carolina sits comfortably among the states with the lowest property tax bills.

The state offers property tax exemptions for disabled veterans and has property tax relief for senior citizens. Tax bills here are typically lower than the national average.

5. Louisiana: 0.54%

Louisiana property taxes are among the lowest thanks to a generous homestead exemption and an average effective tax rate of 0.54 percent.

Property tax bills vary based on parish, but the state ranks consistently low. Homeowners pay less, even with relatively modest property values.

6. West Virginia: 0.54%

In the Mountain State, the average property tax bill stays low due to an approximately 0.54 percent effective tax rate. Local governments apply property tax relief for low-income homeowners and exemptions for homesteads.

Though property values are low, so are the taxes.

7. Delaware: 0.55%

Delaware maintains a low overall tax burden, with an effective property tax rate of about 0.55 percent. The state also has no sales tax and favorable corporate tax laws, which helps offset government revenue needs.

8. Wyoming: 0.58%

Wyoming relies heavily on revenue from energy production, which allows the state to keep its property tax rate at just 0.58 percent.

The state property taxes fund schools and other services, but tax bills remain low, especially when compared to states with high property tax rates like New Jersey.

9. Arkansas: 0.58%

Arkansas rounds out the list with an average property tax rate of 0.58 percent. State governments and local tax assessors work together to apply homestead exemptions and manage assessed value. Tax exemptions and relief options help keep annual property tax bills in check.

We created this article in conjunction with AI technology, then made sure it was fact-checked and edited by a HowStuffWorks editor.