The average American homeowner spends around $2,869 on property taxes for their homes every year. 23 states also have a personal property tax on vehicles, adding another $440 for residents. Unfortunately, every state in the U.S. has some type of property tax.
However, there are 11 states that have very low property taxes, making them some of the best states for homeowners and landlords. 27 states have no personal property tax on vehicles. Other states have lower property taxes with higher taxes on things like gas, sales or income.
Whether you rent or own, we all pay property taxes in one way or another. But the property tax burden varies significantly between states, counties and even local municipalities. That’s why homeowners and real estate investors should know how much they’ll be paying in property taxes each year, depending on where the home is located.
Keep reading to find out what state has the lowest property tax in 2025, states with no personal property tax on vehicles, and states that offer property tax relief to seniors, veterans, and disabled people.
Which States Have No Property Tax?
While there is no state in the U.S. that doesn’t have property taxes on real estate, some have much lower property tax rates than others.
Here’s how property taxes are calculated. The effective property tax rate is used to determine the places with the lowest and highest property taxes in the nation. To calculate the effective property tax rate, take the total amount of property taxes paid annually and divide that by the total value of all occupied homes in an area.
11 States with the Lowest Effective Property Tax Rates
Across the U.S., how much you pay in property taxes varies widely, but here are the 11 states with the lowest property tax rates in the country. This is based on the most recent data, thanks to the folks over at Mortgagecalculator.org—pulling property tax data from sources like The US Census Bureau, The Tax Foundation’s property tax maps, and ATTOM since 2015.
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
11 States with the Lowest Median Annual Property Tax
In our property tax comparison by state, we found that 11 states offer the lowest property tax liability in 2025. If as a landlord, you’re looking to keep more cash in your pocket and minimize tax expenses, then you should consider investing in any of these states.
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
11 States with the Highest Property Taxes
The states topping the charts for property taxes often boast some of the priciest homes and the highest property tax rates. That translates into substantial annual tax bills.
1. New Jersey
Homeownership in New Jersey comes with a hefty price tag. Yes, the Garden State holds the record for the highest median property tax in the nation, a whopping $8,897 per year!
The state’s effective property tax rate stands at 2.23%, the highest in the U.S., which explains those steep annual property tax bills. Another reason for the high property taxes in the state is that the median home in New Jersey costs a little over half a million dollars, ranking it the 9th priciest statewide. It’s safe to say, New Jersey residents don’t have it easy when it comes to property taxes.
Median home value: $502,120
Median effective property tax rate: 2.23%
Average annual property tax: $8,897
2. New Hampshire
With a median rate of 1.93%, New Hampshire has the third highest effective property tax rate nationwide. And when it comes to what residents actually pay, the average bill comes to about $6,209, the second highest in the U.S.
Median home value: $470,280
Median effective property tax rate: 1.93%
Average annual property tax: $6,209
3. Connecticut
Connecticut has the fifth highest property tax rate in the U.S. at 1.79%. With annual bills averaging around $6,189, owning a home here is a hefty financial burden compared to many other states.
Median home value: $397,980
Median effective property tax rate: 1.79%
Average annual property tax: $6,189
4. New York
Owning a home in New York comes at a high cost, with residents paying an average property tax of $6,180 a year. As of 2023, the effective property tax rate in the state was 1.4%, the 11th highest in the nation.
Property taxes remain a key lifeline for financing both state and city budgets. In places like New York City, property taxes shoulder a large slice of the city’s financial burden.
For fiscal year 2024-2025, NYC’s property tax budget will jump by $1 billion to $33.7 billion, up 3.1% from last year. Property owners will experience different rates of increases, depending on their property type.
Tax class 1 will be homeowners with single to three-family homes. This group will see the largest rate hike in 13 years, with an 81.4 bps increase. With taxable (assessed) values climbing 4.65% citywide, these homeowners might see an overall tax increase of 8.9%.
Meanwhile, owners of rentals, co-ops, and condos will see a slight rate cut of 20.6 bps, but due to a 4.53% hike in taxable (assessable) value, they’re still facing a 2.8% overall tax increase.
Median home value: $523,600
Median effective property tax rate: 1.4%
Average annual property tax: $6,180
5. Massachusetts
On average, homeowners in Massachusetts are looking at a $5,536 bill each year, and given that Massachusetts boasts the fifth highest median home price in the nation at a jaw-dropping $609,320, it’s a significant hit to the wallet.
The effective property tax rate might sound modest at 1.14%, but when combined with expensive home prices, it results in a significant tax burden for homeowners.
Median home value: $609,320
Median effective property tax rate: 1.14%
Average annual property tax: $5,536
6. Illinois
Homeowners in Illinois pay a steep median property tax bill of $4,912 annually. With a median property tax rate of 2.08%, the state has the second highest rate in the nation.
Although the median home price in Illinois is a moderate $280,600, the state’s high property tax rate lands its homeowners among the most heavily taxed in the U.S.
Median home value: $280,600
Median effective property tax rate: 2.08%
Average annual property tax: $4,912
7. California
In California, sky-high home prices aren’t just headline news—they’re also the reason behind the high property tax bills in the state. California has a median home price of $809,860, the highest in the U.S. Despite what seems like a modest property tax rate (0.75%), the average Californian homeowner still forks over $4,831 in taxes each year due to high home prices.
The low tax rate in the state is thanks to Proposition 13, passed way back in 1978. This law caps property taxes at 1% of a home’s value. Plus, homeowners don’t have to worry about their tax bills skyrocketing. Annual assessed value increases are limited to just 2%—unless the property gets a new owner.
Median home value: $809,860
Median effective property tax rate: 0.75%
Average annual property tax: $4,831
8. Vermont
Living in Vermont has its charms, but homeowners in the state pay an effective property tax rate of 1.83%, the fourth highest in the nation. If you own a home in Vermont, be prepared to shell out around $4,787 a year in property taxes.
For the fiscal year 2024-2025, it’s tougher news for Vermont residents as 87% of towns in the state face increases in homestead education taxes (property taxes). Some towns like Granville are seeing annual taxes rise by over 30%.
Median home value: $397,700
Median effective property tax rate: 1.83%
Average annual property tax: $4,787
9. Rhode Island
In little Rhode Island, property taxes pack a big punch: residents shell out a median of $4,726 every year in property taxes.
The state has an effective property tax rate of 1.4%. But taxes vary significantly depending on where you live. Kent County has the highest effective property tax rate at 1.84%, while Newport County has a rate of 1.27%.
Median home value: $471,100
Median effective property tax rate: 1.4%
Average annual property tax: $4,726
10. Washington
Despite Washington’s effective property tax rate of 0.87% being much lower than states like New Jersey, which stands at 2.23%, its home prices tell a different story. With a median price tag of $631,060, Washington has the fourth highest home prices in the nation.
At $4,283, the median annual property tax payment in Washington ranks as the tenth highest across the country.
However, in Washington State, property taxes can only increase by 1% annually or match the rate of inflation—whichever is less. But these limits do not apply to voter-approved levies, which can significantly bump up your total tax bill.
Median home value: $631,060
Median effective property tax rate: 0.87%
Average annual property tax: $4,283
11. The District of Columbia
Living in the heart of the nation isn’t cheap — D.C. boasts a median home price of $647,600! This high median home price plays a significant role in the district’s steep property tax bills.
While D.C.’s property tax rate is modest at 0.62%, given the pricey real estate market, homeowners find themselves forking over an average of $4,114 in property taxes each year.
Median home value: $647,600
Median effective property tax rate: 0.62%
Average annual property tax: $4,114
27 States with No Personal Property Tax on Vehicles
According to the latest data, 12 States in the U.S. charge no property tax on vehicles. They include:
1. Delaware
2. Georgia
3. Idaho
4. Iowa
5. Maryland
6. New Jersey
7. New Mexico
8. New York
9. North Dakota
10. Ohio
11. Oregon
12. Rhode Island
While these states may not charge personal property taxes for vehicles, they may still charge on specialized farm and construction vehicles, like tractors. Most states also charge a sales tax for vehicle sales.
On the other hand, 15 states do not charge an annual property tax on vehicles, but still charge an annual tax on vehicle ownership. These are:
1. The District of Columbia
2. Florida
3. Hawaii
4. Illinois
5. Minnesota
6. New Hampshire
7. Oklahoma
8. Pennsylvania
9. South Dakota
10. Tennessee
11. Texas
12. Utah
13. Vermont
14. Washington
15. Wisconsin
States with No Property Tax for Seniors/People Over 65
Owning real estate usually means paying property taxes, but some states offer generous tax breaks for seniors. Yet, property tax benefits for seniors vary widely per state with some states offering more relief than others. For instance, while most states set the bar at 65, states like Washington allow exemptions starting at 61. Alabama is the only state that offers total property tax exemption to seniors 65 and up.
1. Alabama
If you’re over 65, permanently disabled, or blind at any age, you’re exempt from paying the state portion of property taxes in Alabama. Note that even with state property taxes off the table, county taxes might still apply. But if you’re 65 or older and earn $12,000 or less, you might not have to pay any property taxes at all.
10 States with Significant Property Tax Savings for Seniors/People Over 65
The following states offer partial exemption on property taxes for seniors and people over 65.
1. Hawaii
In Hawaii, if you’re 65 or older, you could knock $160,000 off your home’s assessed value, reducing your property tax liability. This is $40,000 more than what homeowners under 65 get.
To qualify for the home exemption, seniors need to live in their home for more than 270 days in the year, be registered to vote in the state, or file a state tax return as a resident of Hawaii.
2. Louisiana
In Louisiana, if you’re 65 or older, the first $75,000 of your home’s value is exempted from property taxes. Plus, with Louisiana’s Special Assessment Level Freeze, seniors and disabled veterans can breathe easy. This program protects seniors from increases in property tax assessments.
3. Alaska
Alaska offers a sweet deal where seniors can exempt up to $150,000 of their home’s value from property taxes. Just make sure it’s your main home and you’ve been a resident of Alaska for a year before you apply. Plus, you’ve got to live in the property for at least 185 days in each subsequent year.
4. New York
Seniors in New York City can markedly reduce their property taxes thanks to the Senior Citizen Homeowners’ Exemption. If you’re 65 or older, you might cut your property’s taxable value by up to 50%. And, if your income is a bit higher than the local maximum for this exemption, reductions of 20%, 10%, or even 5% are still available.
While the income limits vary, generally, you won’t qualify if you make more than $58,399. This ensures that the exemption primarily benefits low to moderate-income seniors. And seniors who are disabled may qualify for more property tax exemptions.
5. Washington
If you’re over 61 or living with a disability, Washington offers some relief on your property taxes. Washington reduces your property taxes by exempting you from excess levies and a portion of regular levies based on your income.
The state also locks in your home value on the first year of qualification to help you prevent increases in property taxes due to rising market values.
To qualify for the exemption, your income needs to be below 70% of your county’s median household income, or the previous year’s threshold – whichever gives you the advantage.
Depending on what you earn, you’ll fall into one of three savings brackets. Level 1 provides an exemption on 60% or $60,000 of your home’s assessed value, plus you get no excess levies.
If you earn a bit more, Level 2 offers an exemption on $50,000 or 35% of your property’s value, and also eliminates excess levies. And if you’re a senior who’s over the income bracket, Level 3 exempts you from excess levies.
6. Mississippi
In Mississippi, seniors can catch a break on property taxes, thanks to two homestead exemptions:
Regular homestead exemption:
Every eligible homeowner can tap into this. This exemption provides a graduated tax credit of up to $300 on the first $7,500 of your home’s assessed value.
Additional homestead exemption:
If you’re 65 or older or have a total disability, you get a full exemption on ad valorem (property) taxes on the first $7,500 of your home’s assessed value.
7. Florida
In Florida, you might be delighted to learn that the state reduces the taxable value of your main home by up to $50,000. This exemption is available to all homeowners, as long as the property is your primary residence.
People who are 65 years old or older get an extra $50,000 exemption. This is on top of the regular exemption.
8. South Dakota
If you’re 70 or older, South Dakota lets you put off paying property taxes until you sell your home. As of 2024, this program is only available to single-person households with income below $17,392 and multi-person households with income below $21,740. If you qualify, you might also get a chance to reduce or freeze your property taxes.
There’s also a sales or property tax refund program for low-income seniors and individuals with disabilities. To qualify for this, your income must be under $16,038 as a single-person household (or $21,692 for multi-person households).
9. Texas
In Texas, seniors aged 65 or older qualify for an extra $10,000 homestead exemption beyond the standard $100,000 homestead exemption. This means if you’re in this age group, you could see your taxable property value drop by at least $110,000.
Turning 65 in Texas comes with a perk: a “senior freeze” on your school district taxes. This cap means no more tax increases on your current home—unless you decide to upgrade it significantly.
Texas seniors can also benefit from local tax exemptions and tax reductions offered by county commissioners courts, city councils, and junior college districts.
10. Wyoming
Wyoming recently introduced House Bill 3, which went into effect on January 1, 2024 and expires on July 1, 2027. If you’re over 65 and have been a Wyoming homeowner for 25 years, with this new bill, you get a 50% exemption on property taxes. This generous break applies to your home and up to 35 acres of land. Just make sure you live there at least eight months in a year.
Wyoming also caps school district taxes for seniors aged 65 or older. Even better, this cap stays with you, transferring to any new primary residence you move into within the state. Say your original tax ceiling was 25% of total taxes before, you’ll only pay 25% of total taxes at your new place.
18 States with No Property Tax for Disabled Veterans
In all 50 states, disabled veterans are eligible for some sort of property tax exemption. However, 18 states offer the maximum exemption: no property tax whatsoever on a veteran’s primary residence. This exemption is available to disabled veterans and their unmarried surviving spouses. Veterans should contact their local municipal tax assessor’s office for information on exemptions.
1. Alabama
2. Arkansas
3. California
4. Florida
5. Hawaii
6. Illinois
7. Iowa
8. Maryland
9. Michigan
10 Nebraska
11. New Hampshire
12. New Jersey
13. New Mexico
14. Oklahoma
15. Pennsylvania
16. South Carolina
17. Texas
18. Virginia
Conclusion
As we’ve learned, there aren’t any states with no property tax on homes in 2025. However, homeowners and real estate investors alike should understand the overall property tax burden required by their specific state, county and local government.
Living in a state with less property taxes can save residents thousands of dollars every year, increasing affordability and lowering cost-of-living.
