States With the Lowest Property Tax

2026

Top 10 US states with the lowest effective property tax rates in 2026, ranked by Tax Foundation 50-state report. Hawaii, Alabama, and Colorado lead.

Written and reviewed by Konstantin Iakovlev · Methodology · Updated

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Ranked by current 2026 effective property tax rate (lowest first)

Effective property tax rate = annual property tax bill ÷ market value of home. Sourced from the Tax Foundation 50-state property tax report and individual state revenue departments. Median bill amounts depend on home prices; effective rate is the cleaner cross-state comparison.

  1. 1

    Hawaii

    Hawaii — 0.27% effective. Lowest in the country, but on the highest median home prices ($845K). Median annual bill ~$2,300 despite the high property values.

    paycheck → income tax → property tax → cost of living →
  2. 2

    Alabama

    Alabama — 0.41% effective. Constitutional rate cap of 6.5 mills statewide + 10% Class III residential assessment ratio.

    paycheck → income tax → property tax → cost of living →
  3. 3

    Colorado

    Colorado — 0.51% effective. Residential assessment ratio reduced to 6.7% under SB24-233 (2024) reforms, with statewide growth capped at 5.5%/year.

    paycheck → income tax → property tax → cost of living →
  4. 4

    Wyoming

    Wyoming — 0.55% effective. 9.5% residential assessment ratio + low mill levies (12 mills counties + 25 mills school).

    paycheck → income tax → property tax → cost of living →
  5. 5

    Nevada

    Nevada — 0.59% effective. 35% assessment ratio applied to "taxable value" (replacement cost less depreciation, often well below market) + constitutional 3% annual cap.

    paycheck → income tax → property tax → cost of living →
  6. 6

    Utah

    Utah — 0.57% effective. 45% Primary Residential Property Exemption (effectively 55% taxable ratio). Circuit Breaker for owners 66+ refunds up to $1,233.

    paycheck → income tax → property tax → cost of living →
  7. 7

    South Carolina

    South Carolina — 0.50% effective. Class 1 owner-occupied at 4% assessment ratio (vs 6% for non-owner-occupied) — among the lowest ratios in the country.

    paycheck → income tax → property tax → cost of living →
  8. 8

    West Virginia

    West Virginia — 0.55% effective. Class II owner-occupied 60% assessment ratio. Bills under $2,000/year on a $300K home in most counties.

    paycheck → income tax → property tax → cost of living →
  9. 9

    Louisiana

    Louisiana — 0.55% effective. Generous $75,000 homestead exemption (10% assessment ratio) means many homeowners owe little or no property tax on the parish portion.

    paycheck → income tax → property tax → cost of living →
  10. 10

    Tennessee

    Tennessee — 0.55% effective. 25% assessment ratio + state Property Tax Relief for owners 65+ (up to $32,000 of value reduction).

    paycheck → income tax → property tax → cost of living →

Methodology note: This listicle is curated based on Q1 2026 data verified against each state's Department of Revenue + Tax Foundation 50-state reports. Rankings reflect tax structure and are not investment advice. Cost of living, employment opportunities, climate, and personal preferences should also factor into relocation decisions.