Top 10 States with the Lowest Property Tax Rates in the U.S.

Property Tax by State: The 10 Lowest in the U.S.

According to the most recent data, these are the 10 U.S. states which have the lowest effective property tax rates:

1. Hawaii – 0.28%

Property taxes remain low in Hawaii despite the high costs of residential homes throughout the state. A powerful tourism-oriented economy enables the state to maintain minimal property tax rates.

2. Alabama – 0.41%

Alabama property owners have one of the lowest property tax rates in the nation, as seniors and disabled residents qualify for significant tax exemptions.

3. Colorado – 0.51%

Colorado maintains affordable property taxes as its tax limitation laws protect homeowners from excessive increases and outcompete states experiencing fast-paced population growth.

4. Louisiana – 0.55%

The property tax rates in Louisiana are among the lowest across the country. The primary residence value becomes less taxable through the implementation of homestead exemptions.

5. South Carolina – 0.56%

The property taxes in South Carolina are low, and the state provides additional benefits through tax exemptions for homeowners and senior residents.

6. Delaware – 0.57%

Delaware maintains affordable property taxes and excludes sales taxes from its system, which makes it appealing to retirees and people with fixed incomes.

7. West Virginia – 0.58%

The rural character of West Virginia and its affordable living costs create favorable conditions for low property taxes.

8. Wyoming – 0.58%

The robust energy industry enables Wyoming to collect revenue that supports low property taxes and eliminates state income taxes.

9. Arkansas – 0.61%

Property taxes in Arkansas remain low due to lower property values and statewide taxation limits.

10. Mississippi – 0.63%

Mississippi has the lowest property tax rates by concentrating its low rates on rural regions with reduced assessed property values.

Which State in the USA Has No Property Tax?

For property owners looking to avoid property taxes altogether, there is no state in the U.S. without property taxes. Every state uses property taxes to pay for vital services such as public schools, emergency services, and roads.

However, a few states have substantial exemptions or credits that can decrease your bill substantially. Here are some examples:

• Alaska has optional property tax exemptions for seniors and disabled vets.
• Florida also has a homestead exemption, which can cut taxable home value by as much as $50,000.
• Nevada limits yearly hikes in property tax bills to keep costs steady.