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Are There Any States with No Property Tax in 2024?

ARE THERE ANY STATES WITH NO PROPERTY TAX IN 2023?
Aristotle Kumpis RealWealth Investment Counselor

Aristotle Kumpis

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Summary: In this article, find out if there are any states with no property tax in 2024. Topics also include states with the lowest and highest property taxes, and states with property tax exemptions for seniors, disabled veterans and disabled people.

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Introduction

The average American homeowner spends around $2,300 on property taxes for their homes every year. 27 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, and 23 with 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.

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Keep reading to find out what state has the lowest property tax in 2024, 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 aren’t any states that don’t have any property taxes on real estate, some have much lower property tax rates than others.

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 as a percentage of the total value of all occupied homes.

11 States with the Lowest Effective Property Tax Rates

While there aren’t any states with no property tax on homes, the following are the top 11 states with the lowest property tax rates in the nation.

1. Hawaii

Hawaii has the lowest property tax rate in the United States, at just 0.31%. That’s not bad for a state that also ranks as one of the most expensive places to live in America.

Why do Hawaii’s property taxes seem so low? It comes down to exemptions on owner-occupied residences: homeowners in the islands can apply for an exemption of up to $160,000 depending on which county they live in.

While property tax rates in Hawaii are among the lowest in the country, median house costs in the state are still quite high; as a result, the average homeowner in Hawaii pays approximately $1,455 per year in property taxes.

Property Tax Rate: 0.31%

2. Alabama

Alabama is one of the most affordable states to live in, and that’s especially true when it comes to property taxes. The average effective property tax rate in Alabama is just 0.39%

Property Tax Rate: 0.39%

3. Colorado

Colorado’s effective annual property tax rate of 0.54% is the third lowest in the country, behind only Alabama and Hawaii. Property taxes in Colorado are used to support local services, for example public schools. In fact, 100% of Colorado property tax revenue stays within the county in which it is collected.

Property Tax Rate: 0.54%

4. Louisiana

The state of Louisiana has a generous homestead exemption, which reduces the taxable value of owner-occupied properties by $7,500 in assessed value. This saves many homeowners hundreds of dollars each year.

The Tax Foundation reports that Louisiana’s effective property tax rate of 0.54% ranks fourth lowest in the United States.

Property Tax Rate: 0.54%

5. West Virginia

West Virginia has the fifth-lowest effective property tax rate in the United States, at 0.55%.
The state’s property taxes are based on the assessed value of a home and the total tax rate that applies to that home.

The assessed value is determined by comparing the home’s current market value to similar homes in the area. Then, we adjust that value based on any improvements made to the property since its last appraisal. Homes are reappraised at least once every three years in West Virginia.

Property Tax Rate: 0.55%

6. Wyoming

Wyoming’s effective property tax rate is just 0.56%. One of the main reasons for this low tax rate is that the state assesses residential property at just 9.5% of its fair market value.

Property Tax Rate: 0.56%

7. South Carolina

The average effective property tax rate in South Carolina is 0.56%. In South Carolina, taxes on owner-occupied residences are far lower than those on other types of property.

Property Tax Rate: 0.56%

8. Delaware

Delaware is one of the few states that has no legal requirement to periodically reassess property values. The last county-wide reassessment took place in New Castle County in 1983, Kent County in 1987 and Sussex County in 1974. Because of this, property valuations are still low, hence low taxes.

However, property values in all three major counties in Delaware are likely to be reassessed soon with 2024 valuation dates.

Property Tax Rate: 0.59%

9. Utah

The state of Utah has an effective property tax rate of 0.59%, the ninth-lowest in the United States. In Utah, homes that are the primary residence of the homeowner receive a property tax exemption of 45%. That means only 55% of a home’s value is subject to taxation.

Property Tax Rate: 0.59%

10. Nevada

Nevada has a property tax rate of 0.6%, which is well below the national average of 1.11%. In addition to having one of the lowest effective property tax rates in the nation, Nevada also offers homeowners some relief: their property tax abatement law limits annual increases in property tax bills to a maximum of 3%.

Property Tax Rate: 0.60%

11. Washington D.C.

The effective property tax rate in DC is 0.61%. This means that for every $1,000 in taxable value, a taxpayer pays $6.1 in property taxes.

In the District of Columbia, taxpayers can claim a number of deductions and credits that lower their property tax bills. A deduction reduces the assessed value of a property indirectly by lowering its taxable value. A credit directly reduces the taxes owed by an individual or business. For example, if you own and live in your home, you may qualify for a homestead deduction which reduces your assessed value by as much as $84,000.

Property Tax Rate: 0.61%

11 States with the Lowest Median Annual Property Tax

The following 11 states have the lowest annual property taxes on homes in 2024.

1. West Virginia

West Virginia has the fifth lowest tax rates in the country, and its median home values are also among the lowest.

In fact, based on recent data from Bankrate, the state of West Virginia has the lowest annual property tax demands of all 50 states—at only $812 per year.

Median Annual Property Tax: $812

2. Alabama

Home prices in Alabama are well below the national average, while the state’s property tax rate is one of the lowest in the country. As a result, Alabama homeowners pay an average of $857 per year in property taxes.

Median Annual Property Tax: $857

3. Arkansas

Arkansas homeowners pay the third-lowest property taxes in the United States, according to Bankrate’s data. The state’s property tax rate is 0.64%.

Median Annual Property Tax: $1,118

4. Louisiana

The average annual property tax in Louisiana is $1,195. Residential property in Louisiana is assessed at 10% of its market value. So if your home has a market value of $100,000, your assessed value would be $10,000.

Median Annual Property Tax: $1,195

5. Mississippi

Mississippi is one of the best states in the US to retire, thanks to a low cost of living and a low tax burden. In fact, it’s one of only eleven states that does not tax retirement income. According to the Tax Foundation, Mississippi has an effective property tax rate of 0.65%.

Median Annual Property Tax: $1,361

6. Oklahoma

The state of Oklahoma imposes low property taxes because its laws prevent assessed property values from increasing by more than 3% each year. The state’s effective property tax rate is low, at just 0.88%, according to the Tax Foundation.

Median Annual Property Tax: $1,664

7. South Carolina

In South Carolina, the average effective property tax rate is 0.56 percent. The average homeowner in the state pays $1,708 annually in property taxes. Horry County has the lowest property tax rate in South Carolina, at just 0.42%.

Median Annual Property Tax: $1,708

8. Kentucky

The average property tax rate in Kentucky is 0.82%. The state’s median home value is $200,423, and a typical homeowner pays about $1,724 per year in property taxes.

Median Annual Property Tax: $1,724

9. Indiana

Indiana has a property tax rate of 0.84%, and the annual median property tax paid by residents is $1,897. That ranks it ninth lowest in the country.

The median price of real estate in Indiana is $223,194. Homeowners who live in their primary residence in Indiana are eligible for a number of deductions that can push the property tax below the average.

Median Annual Property Tax: $1,897

10. Wyoming

The effective tax rate in Wyoming is the fourth lowest in the country, and real estate prices are not too high.

In Wyoming, property tax rates are expressed in mills. A mill is equal to $1 of tax for every $1,000 of assessed value. So if your assessed value is $10,000 and your mill rate is 75 mills, your total annual tax bill would be $750.

Median Annual Property Tax: $1,981

11. Delaware

Delaware has an average effective property tax rate of 0.59%, which is almost half the national average of 1.11%. The median annual property tax paid by homeowners in Delaware is $2,041.

Median Annual Property Tax: $2,041

11 States with the Highest Property Taxes

The following states have the highest property taxes in 2024.

1. New Jersey

New Jersey is known for its high property taxes. Homeowners in the state pay some of the highest property taxes in the country.

When you combine New Jersey’s high property values with the average property tax rate, you get over $12,000 annually in property taxes per homeowner.

Property tax rate: 2.21%
Median annual property tax: $12,061

2. New Hampshire

New Hampshire has no personal income tax or sales tax, but its property tax rates are among the highest in the United States. The state’s average effective rate is 1.96%.

Property tax rate: 1.96%
Median annual property tax: $9,925

3. Connecticut

In Connecticut, counties are not responsible for administering property taxes; instead, cities and towns set rates and collect taxes. The state’s average effective property tax rate is 1.76%.

Property tax rate: 1.76%
Median annual property tax: $8,216

4. Massachusetts

In Massachusetts, the effective tax rate is close to the national average of 1.1%. However, real estate prices in this state are high at a median of $607,274 as of second quarter 2023, leading to high annual taxes.

Property tax rate: 1.14%
Median annual property tax: $7,469

5. Rhode Island

Rhode Island’s property taxes are a major source of revenue for the state and pay for local government services like law enforcement, infrastructure, schools and parks. Cities and towns in Rhode Island are allowed to set their own due dates and assessment systems under state guidelines. The average homeowner in Rhode Island pays $14.78 per $1,000 of home value in property taxes.

Property tax rate: 1.43%
Median annual property tax: $7,272

6 Vermont

Vermont has the fifth highest property tax rates in the US. The average homeowner pays $6,979 per year in property taxes on a median home price of $367,290.

Property tax rate: 1.82%
Median annual property tax: $6,979

7. New York

New York has some of the highest effective property tax rates in the country. The state average is 1.38%, but rates vary widely from city to city. For example, the average effective tax rate in New York City is just 0.88%, while the statewide average is 1.38%.

Property tax rates are recalculated each year based on the total value of real estate in a tax district (the tax base) and the amount of revenue the tax authority needs. Increases are limited to either 2% or the inflation rate each year. But annual property taxes paid by homeowners are still high.

Property tax rate: 1.38%
Median annual property tax: $6,524

8. Washington

Property tax rates in Washington are generally lower than the US average, but the state’s median home price of $628,988 raises the average annual property taxes for Washington homeowners.

Property tax rate: 0.88%
Median annual property tax: $6,164

9. Illinois

Illinois has the second-highest property taxes in the country. The average effective tax rate statewide is 2.05%, almost double the national average.

Property tax rate: 2.05%
Median annual property tax: $6,134

10. California

California is the second most expensive place to buy a home in the country, behind Hawaii. The median home price in California is $792,787. The average California homeowner pays about $6,025 in property taxes each year—despite the fact that the state’s property tax rate is only 0.73%.

Property tax rate: 0.73%
Median annual property tax: $6,025

11. Texas

Texas has the 7th highest property tax rates in the US. The average effective property tax rate in Texas is 1.88%. Property taxes in Texas are calculated as a percentage of a home’s appraised value. For example, if your total tax rate is 1.5%, and your home’s value is $100,000, you will owe $1,500 in annual property taxes.

Property tax rate: 1.66%
Median annual property tax: $5,692

23 States with No Personal Property Tax on Vehicles

While there aren’t any states with no property tax in 2024, there are 23 states (plus the District of Columbia) that have no personal property tax on vehicles.

  1. Hawaii
  2. District of Columbia
  3. Delaware
  4. Utah
  5. Tennessee
  6. Idaho
  7. New Mexico
  8. Oklahoma
  9. Georgia
  10. Florida
  11. North Dakota
  12. Washington
  13. Oregon
  14. Maryland
  15. Alaska
  16. South Dakota
  17. Ohio
  18. Pennsylvania
  19. New York
  20. Texas
  21. Vermont
  22. Wisconsin
  23. Illinois
  24. New Jersey

13 States with No Property Tax for Seniors/ People Over 65

It’s nearly impossible to avoid paying some form of property tax, especially if you own real estate. But some states are nicer than others regarding local tax exemptions for specific demographics, like senior citizens.

The majority of states across the U.S. require homeowners to be age 65 or older in order to qualify for property tax exemptions, with a few exceptions. If you’re married and jointly own your primary residence, only one spouse must be older than 65 to qualify for certain senior exemptions. The following states offer friendly property tax exemptions for seniors in order to ease their overall tax burden.

#1: South Dakota

Tax-wise, South Dakota is one of the best states for retirees. In addition to no state income tax, retired homeowners may also qualify for the state’s property tax relief programs. For low-income South Dakotans over the age of 70, a homestead exemption allows delaying payment of property taxes until the home is sold.

#2: Washington

Washington State offers property tax exemptions to senior residents 61 years of age and older.

#3: Florida

Not only do Florida residents enjoy great weather and beautiful beaches, there are also some property tax breaks for seniors. Certain residents may qualify for 100% property tax exemptions or a significant reduction.

#4: Alabama

In Alabama, homeowners over the age of 65 are exempt from all state property taxes.

#5: Alaska

If you are a homeowner in Alaska and over the age of 65, you’ll get a municipal property tax exemption on the first $150,000 of your home’s value.

For example, on a $250,000 property in Alaska, you would pay $3,000 annually, at a tax rate of 3%. $250,000 minus $150,000 equals $100,000 times 3%.

#6: South Carolina

Non-military retirees in South Carolina will enjoy a homestead exemption for homeowners over 65.

#7: Georgia

Retirees in the Peach State may qualify for property tax exemptions or deferrals.

#8: Hawaii

In Honolulu, Hawaii, residents age 65 and older qualify for an exemption of $120,000 of their home’s value. In 2022, the exemption for seniors increased to $140,000.

#9: Mississippi

The effective property tax rate in Mississippi is one of the 10 lowest in the nation. And, anyone over the age of 65 can enjoy a homestead exemption on the first $75,000 of the home’s value.

#10: South Carolina

Non-military retirees in South Carolina will enjoy a homestead exemption for homeowners over 65.

#11: New York

New York offers a Senior Citizen Exemption of 50% of your home’s appraised value. Homeowners must be over the age of 65, with an annual income of $29,000 or less. Qualified residents are only required to pay property taxes on half of their home’s value.

Note: If a deceased spouse was over the age of 65, New York allows you to continue claiming your exemption.

#12: Texas

In Harris County, Texas, better known as Houston, the majority of seniors over the age of 65 don’t have to pay property taxes. Residents in the Houston area are exempt up to $160,000 plus a 20% reduction off home values.

Note: Like New York, if the deceased spouse was over the age of 65, you may continue claiming your exemption in Texas, however, only if the surviving spouse is 55 or older.

#13: New Hampshire

The state of New Hampshire will increase property tax exemptions year for seniors 65 and older.

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 2024. 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.

Aristotle Kumpis RealWealth Investment Counselor
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