USA Property Tax Comparison • 2026
Where Are the Lowest Property Taxes in the United States?
Hawaii has the lowest effective residential property tax rate in the United States at 0.29%, followed by Alabama at 0.37%, according to the Tax Foundation’s 2026 state comparison using 2024 U.S. Census data.
But a low percentage does not automatically mean a small annual tax bill. Hawaii’s expensive housing can produce a larger dollar tax bill than a moderately priced home in Alabama, even though Hawaii has the lowest effective rate.
This guide compares the states, explains why their rates differ, shows how to estimate taxes on an actual home, and provides government links and steps for checking the real property-tax amount before buying or paying.
Quick Answer: Which State Has the Lowest Property Taxes?
If your question is which state collects the smallest share of owner-occupied home value in property tax, the answer is Hawaii. If you care about paying the fewest dollars annually on a typical home, Alabama is generally a more useful starting point.
For a homeowner moving to a new state, the amount that matters most is the estimated tax bill on the particular house—not just the statewide average.
10 States With the Lowest Property Tax Rates in 2026
The following comparison uses the Tax Foundation’s 2026 release covering effective property tax rates on owner-occupied housing, based on 2024 Census American Community Survey data.
| Lowest Rank | State | Effective Rate | Illustrative Tax on $300,000 Home |
|---|---|---|---|
| 1 | Hawaii | 0.29% | $870 |
| 2 | Alabama | 0.37% | $1,110 |
| 3 (tie) | Arizona | 0.48% | $1,440 |
| 3 (tie) | Utah | 0.48% | $1,440 |
| 5 | South Carolina | 0.49% | $1,470 |
| 6 (tie) | Colorado | 0.50% | $1,500 |
| 6 (tie) | Idaho | 0.50% | $1,500 |
| 6 (tie) | Nevada | 0.50% | $1,500 |
| 9 | West Virginia | 0.51% | $1,530 |
| 10 | Tennessee | 0.52% | $1,560 |
Example amounts apply the state effective rate to an identical hypothetical $300,000 home. They are not the state median bills and are not quotations for a specific property. Tied rates are grouped by displayed rounded values.
Visual Comparison: Lowest Property Tax Rates
These bars compare the same effective-rate figures. All bars use a 0.60% visual scale to show the differences among low-rate states.
Primary data: Tax Foundation — Property Taxes by State and County, 2026.
Property Tax Rates for All 50 States
A state can have a higher rate than Hawaii while still producing a smaller bill on a low-priced house. Use this table to understand the national spread before researching the county where you plan to buy.
| Position | State | Rate | $300,000 Example |
|---|---|---|---|
| 1 | Hawaii | 0.29% | $870 |
| 2 | Alabama | 0.37% | $1,110 |
| 3 | Arizona | 0.48% | $1,440 |
| 4 | Utah | 0.48% | $1,440 |
| 5 | South Carolina | 0.49% | $1,470 |
| 6 | Colorado | 0.50% | $1,500 |
| 7 | Idaho | 0.50% | $1,500 |
| 8 | Nevada | 0.50% | $1,500 |
| 9 | West Virginia | 0.51% | $1,530 |
| 10 | Tennessee | 0.52% | $1,560 |
| 11 | Wyoming | 0.53% | $1,590 |
| 12 | Delaware | 0.54% | $1,620 |
| 13 | Louisiana | 0.55% | $1,650 |
| 14 | Arkansas | 0.56% | $1,680 |
| 15 | Mississippi | 0.58% | $1,740 |
| 16 | Montana | 0.61% | $1,830 |
| 17 | New Mexico | 0.63% | $1,890 |
| 18 | North Carolina | 0.66% | $1,980 |
| 19 | California | 0.70% | $2,100 |
| 20 | Kentucky | 0.74% | $2,220 |
| 21 | Washington | 0.75% | $2,250 |
| 22 | Indiana | 0.76% | $2,280 |
| 23 | Florida | 0.78% | $2,340 |
| 24 | Virginia | 0.78% | $2,340 |
| 25 | Georgia | 0.79% | $2,370 |
| 26 | Oklahoma | 0.79% | $2,370 |
| 27 | Oregon | 0.81% | $2,430 |
| 28 | Missouri | 0.89% | $2,670 |
| 29 | Maryland | 0.92% | $2,760 |
| 30 | North Dakota | 0.92% | $2,760 |
| 31 | Alaska | 0.94% | $2,820 |
| 32 | Maine | 0.98% | $2,940 |
| 33 | Massachusetts | 1.00% | $3,000 |
| 34 | Minnesota | 1.00% | $3,000 |
| 35 | South Dakota | 1.00% | $3,000 |
| 36 | Rhode Island | 1.12% | $3,360 |
| 37 | Michigan | 1.19% | $3,570 |
| 38 | Kansas | 1.21% | $3,630 |
| 39 | Pennsylvania | 1.26% | $3,780 |
| 40 | New York | 1.30% | $3,900 |
| 41 | Wisconsin | 1.32% | $3,960 |
| 42 | Iowa | 1.33% | $3,990 |
| 43 | Ohio | 1.36% | $4,080 |
| 44 | Texas | 1.40% | $4,200 |
| 45 | Nebraska | 1.44% | $4,320 |
| 46 | New Hampshire | 1.50% | $4,500 |
| 47 | Vermont | 1.51% | $4,530 |
| 48 | Connecticut | 1.54% | $4,620 |
| 49 | Illinois | 1.88% | $5,640 |
| 50 | New Jersey | 1.88% | $5,640 |
Positions follow the published state rank order; displayed percentages are rounded, so some states appear tied. The District of Columbia is excluded from the 50-state positions; its comparable effective rate is 0.60%.
Lowest Property Tax Rate vs Lowest Annual Property Tax Bill
This is the most important distinction in any national property-tax comparison. States with expensive homes can have low percentage rates but relatively high bills in dollars.
Hawaii: Lower percentage
Hawaii’s statewide effective rate is 0.29%. Applying that rate to an $800,000 hypothetical home produces an illustrative annual amount of $2,320.
Hawaii’s relatively expensive residential property means the low effective percentage does not guarantee the smallest annual tax payment.
Alabama: Lower typical dollar burden
Alabama’s statewide effective rate is 0.37%. Applying it to a $200,000 hypothetical home produces an illustrative annual amount of $740.
Alabama also has substantially lower typical home values than Hawaii, helping explain why its median annual tax bills can be lower.
Actual Census-based median annual bills
A separate Census 2024 one-year comparison reported by SmartAsset gives the following state-level figures:
| State | Median Home Value | Median Annual Property Tax | Effective Rate in That Dataset |
|---|---|---|---|
| Alabama | $233,300 | $890 | 0.38% |
| Hawaii | $875,900 | $2,385 | 0.27% |
Source: SmartAsset — States With the Lowest Property Taxes in 2026, using Census 2024 one-year ACS figures. This is a different ACS methodology from the Tax Foundation comparison, which is why the percentages are not identical. Do not combine the rates from one dataset with the median bills from another as though they measure the same properties.
What Makes Property Taxes Lower in Some States?
Property-tax differences come from local budgets, housing values, assessment ratios, exemptions, tax caps and the way governments finance schools and public services. A low effective rate does not necessarily mean that every homeowner receives the same treatment.
Hawaii: Lowest statewide effective rate
Real property taxes in Hawaii are principally county-administered. Honolulu, Hawaii County, Maui County and Kauai County have their own real property tax information, classifications, exemptions, billing procedures and payment resources.
Before buying, check the specific island county and property classification. A primary residence, second home or investment property may face a different treatment.
Alabama: Low overall residential tax burden
Alabama uses property classification and assessment rules that help keep many owner-occupied residential property bills relatively low. County rates, municipal taxes, exemptions and qualifying property classifications still matter.
If you live in Alabama, check the homestead exemption with your county revenue commissioner or other authorized county property-tax office. The actual saving depends on eligibility and applicable taxes.
Arizona: County-level valuation and collection
Arizona’s effective rate is 0.48% in the comparison. The Arizona Department of Revenue explains that its 15 county assessors and county treasurers administer local assessment and collection responsibilities.
The county assessor determines local property valuation, while the county treasurer collects the tax and provides payment services.
Utah: Primary residential treatment matters
Utah’s effective rate is 0.48%. Owner-occupied primary residential property can receive preferential taxable-value treatment when eligible. County assessment, tax rates and property classification still determine the actual bill.
South Carolina: Legal residence assessment ratio
South Carolina distinguishes eligible primary residences from other real estate. The state Department of Revenue lists a 4% assessment ratio for qualifying primary residences and 6% for other real estate.
Those are assessment ratios, not the final effective tax rates. The county millage and other applicable rules are applied after the property’s taxable assessment is determined.
South Carolina Department of Revenue: Official Assessment Ratios.
Colorado, Idaho and Nevada
Each has a 0.50% effective statewide rate in the 2026 comparison, but their systems operate differently.
- Colorado: Valuation, residential assessment percentages and local levies can vary by tax year. Check the county assessor and treasurer.
- Idaho: County valuation and available homeowner relief can affect taxable value. Check the homeowner exemption and any relief program for which you qualify.
- Nevada: County assessment and applicable tax-abatement rules can affect changes to bills. A seller’s tax bill may not perfectly forecast a new buyer’s costs.
Official Government Property Tax Websites and What to Click
These primary sources explain property tax rules and direct users to the appropriate county or local agency. Actual payments normally occur through a specific local collector, not through a single nationwide portal.
| State | Official Starting Point | What to Look For |
|---|---|---|
| Hawaii | Honolulu City and County | Real Property Tax, Property Search, Tax Payments; use the appropriate county if outside Honolulu |
| Alabama | Alabama Department of Revenue | Property Tax, Homestead Exemption, County Officials |
| Arizona | Arizona Department of Revenue | County Assessor Contacts, County Treasurer Contacts, Appeals, Exemptions |
| Utah | Utah State Tax Commission | Property Tax, County Offices, Appeals, Residential Exemption |
| South Carolina | South Carolina Department of Revenue | Property Tax, Legal Residence, Exemptions, County Resources |
| Colorado | Colorado Department of Revenue | Property Tax Information and County-Level Resources |
| Idaho | Idaho State Tax Commission | Property Tax, Homeowner Exemption, Property Tax Reduction |
| Nevada | Nevada Department of Taxation | Property Tax, County Information, Tax Abatement |
| West Virginia | West Virginia Tax Division | Property Tax, County Sheriff Collection, Homestead Exemption |
| Tennessee | Tennessee Comptroller Property Assessments | Property Assessment, Appeals, Local Trustee Payment Routing |
These are official starting points, not necessarily direct parcel-payment pages. Agency menus and destinations may change. Follow the government’s current links to your county or municipality.
How to Look Up and Pay Property Taxes in a Low-Tax State
A state ranking tells you where property taxes tend to be lower. It cannot show the exact amount owed on your home. For that, you need the property’s local assessment and current tax account.
- Confirm the property’s county and state. Use the actual property location, not just its postal city. A city can span multiple counties.
- Open the state government resource above. Find Property Tax, County Offices, Assessor, Appraiser or Treasurer. For Arizona, the Department of Revenue has separate county assessor and treasurer contact directories.
- Choose the assessor or appraisal office. Open Property Search, Parcel Search, Real Estate Search or another equivalent tool. Search by parcel/account number first where possible.
- Record the property’s taxable details. Check market value, assessed value, taxable value, assessment year, classification and any approved exemptions.
- Open the treasurer or tax collector. Return to the official county website and choose Tax Payments, Property Tax Bills, Online Tax Inquiry or another current payment service.
- Search the current bill. Use the parcel ID, property address or tax account number. Confirm the owner clue, tax year, installment, due date, total amount and unpaid balance.
- Review convenience fees. The local office may offer different charges for card payments, electronic checks, mail or in-person payments. Compare fees before submitting.
- Pay and save the receipt. Complete payment through the authorized collector or its government-linked provider. Save the confirmation, then check that it posts after the stated processing period.
Lowest Property Tax States Calculator
Use this calculator to compare a house against the effective rates in the low-tax states. It is most useful for early-stage homebuying or relocation planning.
Why your actual bill may differ
State effective rates are observational averages. The assessor may use a taxable value different from your market price, while the local levy may differ substantially from the statewide rate. Exemptions, tax caps and special charges may also change the result.
For a more reliable estimate, ask the local assessor whether the home will be reassessed after purchase and obtain the latest official combined local tax rate.
How to Reduce Property Taxes Even in a Low-Tax State
Low statewide rates are helpful, but eligible exemptions and assessment corrections may have a larger effect on your individual tax bill.
| Relief Option | What It May Do | Where to Apply or Check |
|---|---|---|
| Primary residence / homestead relief | May reduce taxable value, change assessment treatment or limit eligible increases | County assessor, appraiser or revenue commissioner |
| Senior homeowner relief | May provide a credit, exemption, reduction or deferral | State/local property tax relief administrator |
| Veteran / disability relief | May reduce or eliminate qualifying parts of tax | Assessor or designated agency |
| Assessment appeal | May correct excessive assessed value or wrong classification | County assessment appeal authority |
| Property tax deferral | May postpone eligible taxes, sometimes with a lien or interest | State or local government program |
Example: South Carolina’s 4% legal residence treatment
The South Carolina Department of Revenue explains that qualifying primary residences are assessed at 4% of fair market value, while other real estate generally uses a 6% ratio. These percentages determine the assessed-value base, not the final effective tax rate.
To apply, open the official South Carolina Property Tax Exemptions page, find the 4% Legal Residence information, then contact the county assessor where the home is located. Complete the county’s current application and provide required ownership and residency documentation.
Example: Arizona exemptions and appeals
The Arizona Department of Revenue explains that county assessors administer local valuation and qualifying exemption or appeal processes. Its property-tax page provides county assessor contact resources.
Open Arizona Property Tax, find County Assessor Contact Information, choose the county, and then locate Exemptions or Appeals. Follow the current county eligibility requirements and deadlines.
What Homebuyers Should Check Before Moving to a Low Property Tax State
Moving from a higher-tax state to a low-tax state may reduce one cost of homeownership. But tax savings should be compared with actual housing prices, insurance, income taxes, sales taxes and neighborhood expenses.
Actual home price
A low effective rate on an expensive property may produce a higher dollar bill than a higher rate on an inexpensive home.
Post-purchase reassessment
Some states or counties adjust taxable value after transfers. A seller’s old tax bill may underestimate what a buyer will pay.
Homeowner versus rental classification
Primary residence benefits may be unavailable for investment properties, second homes or certain ownership structures.
Special district charges
Local improvement, fire, drainage, infrastructure or other district charges may appear in addition to ordinary ad valorem taxes.
Insurance and disaster exposure
A property with a low tax rate may still carry high insurance costs. Compare full housing expenses, not just taxes.
Local school and service funding
School districts, municipalities and special taxing authorities can affect a home’s tax burden even within the same state.
Checklist before submitting a purchase offer
- Get the parcel number. Ask for the official APN, parcel ID, PIN, tax ID or account number.
- Check the current assessed and taxable values. Use the local assessor’s website.
- Check the collector’s current tax bill. Confirm paid/unpaid status, tax year and special assessments.
- Ask about reassessment on transfer. A purchase may change taxable value or exemption status.
- Verify primary-residence eligibility. Review homestead or owner-occupied classification requirements.
- Calculate a post-purchase estimate. Use local tax rules instead of assuming the seller’s bill will continue.
- Compare all housing costs. Include insurance, HOA fees, mortgage, utilities and other state/local taxes.
Can a County Have Lower Property Taxes Than the State Average?
Yes. Counties and municipalities can have dramatically different property values, school levies, exemptions and taxing districts. Statewide figures are averages across very different local markets.
The Tax Foundation’s 2026 dataset includes county-level median home values, median real estate taxes paid and estimated effective rates. That is more useful for narrowing a relocation search than choosing a state based on the state figure alone.
How to compare counties properly
- Open the county-level research table. Visit Tax Foundation Property Taxes by State and County.
- Find your state in Table 1. Compare the county median taxes paid, median housing value and effective rate.
- Shortlist counties based on more than the percentage. Check the actual housing prices and likely dollar costs where you intend to buy.
- Open each shortlisted county’s assessor site. Look for property tax search, valuation and exemptions.
- Check the exact tax district. A home inside a city, school district or special district may pay a different amount from one elsewhere in the county.
- Obtain a property-specific estimate. Ask about buyer reassessment, loss of prior-owner exemptions and the current combined levy.
Lowest Property Taxes in the U.S.: Frequently Asked Questions
What state has the lowest property tax rate in the U.S.?
Hawaii has the lowest effective owner-occupied property tax rate in the Tax Foundation’s 2026 comparison, at 0.29%, based on 2024 Census data.
Which state has the lowest average property tax bill?
Alabama is among the lowest and has the smallest median homeowner property tax bill in widely used 2024 Census-based state comparisons. Its relatively inexpensive housing contributes to the lower dollar amount.
Are property taxes cheaper in Hawaii than Alabama?
Hawaii has the lower effective percentage, while Alabama generally has lower typical annual dollar bills. The result for any specific home depends on its location and assessed value.
Does Tennessee have low property taxes?
Yes. Tennessee has a 0.52% effective residential property tax rate in the 2026 Tax Foundation comparison. County and city rates still vary.
What are the property taxes like in Arizona?
Arizona’s effective statewide rate is 0.48% in the comparison. Actual property taxes are determined through local assessments and tax rates, with county assessors handling valuation and county treasurers handling collection.
Which states have property tax rates below 0.5%?
In the Tax Foundation’s 2026 comparison, Hawaii, Alabama, Arizona, Utah and South Carolina have published statewide effective rates below 0.50%.
Do any states have no property tax?
No U.S. state has a complete statewide exemption from every form of local real property taxation. Some areas or properties may qualify for special exemptions, and certain local governments may not impose an ordinary property tax.
How do I find the property tax for a house I want to buy?
Get the parcel number, search the county assessor for valuation and exemption details, then open the local treasurer or tax collector to review the bill. Ask whether a change of ownership will alter the tax.
Can I calculate property tax using a state average?
Yes, as a rough illustration. Multiply the estimated property value by the effective state rate. For a real tax estimate, use the local taxable assessment, levy, exemptions and special charges.
Does a low property tax rate mean a state is cheaper to live in?
Not necessarily. House prices, insurance, income taxes, sales taxes, transportation, HOA charges and utility expenses all affect the total cost of living.
Can a homeowner lower an already low property tax bill?
Potentially. Eligible homestead, primary-residence, senior, veteran, disability or other relief programs can reduce taxes. An assessment appeal may also correct an excessive valuation or classification error.
Why do different websites show different lowest-property-tax rankings?
Sources may use different Census years, one-year versus five-year datasets, medians versus averages, rounding methods or definitions of effective rates. Check the source year and method before comparing rankings.
Should I use a county’s average tax bill to budget for a new home?
Use it only for initial planning. The property-specific tax district, post-purchase taxable value, exemption status and current local rates are more reliable for determining a future bill.
Do lower property taxes always mean less funding for schools?
No. School funding arrangements vary considerably across states, and education can also receive funding from state income taxes, sales taxes and other revenue sources.
Data Sources, Official Resources and Research Method
The main state comparison uses one consistent statistical source rather than mixing state figures collected under different methodologies.
- Tax Foundation — Property Taxes by State and County, 2026. State effective rates and county comparisons using 2024 American Community Survey datasets. Read the original dataset.
- U.S. Census Bureau — American Community Survey. The underlying federal residential housing value and property-tax survey data. Open Census data.
- SmartAsset — States With the Lowest Property Taxes, 2026. Separate 2024 one-year Census comparison used for the Hawaii-versus-Alabama annual-bill example. Read the median-bill comparison.
- Arizona Department of Revenue. Official county assessor/treasurer responsibilities, exemptions and property-tax guidance. Arizona Property Tax.
- South Carolina Department of Revenue. Official assessment ratios and exemption information. Local Government Services.
- USAGov. Official local-government directory to locate the appropriate property-tax office. Find Local Governments.
How the numbers were used
The primary 50-state table uses published 2024 effective rates from the Tax Foundation’s 2026 release. The $300,000 figures are hypothetical amounts calculated with those average rates; they are not actual median bills or guaranteed tax estimates.
The median-bill comparison is displayed separately because it uses a different Census sample and aggregation method. Local property assessments, exemptions, reassessment rules and tax-year changes can produce different actual amounts.
Editorial review: October 2026. PropertyTaxUSA.org is an independent tax-information website and does not determine assessed values, collect taxes or administer government relief programs.
Final Takeaway: Compare the Property, Not Just the State
Hawaii has the lowest effective property tax rate, but Alabama offers a lower typical annual property-tax bill. Arizona, Utah, South Carolina, Colorado, Idaho and Nevada also have relatively low statewide effective rates.
For a relocation or home purchase, the most useful number is the tax you are likely to pay after buying the particular property. Check the assessor’s taxable value, the collector’s tax bill, local levies and any exemptions or reassessment rules before relying on a state average.