Homeowners in these 20 states have the lowest property tax rates in the US. See how the states rank.

Homeowners in the US pay annual real estate taxes on their properties, varying by state. JazK2/Shutterstock 2026-02-25T17:54:33.272Z Share Copy link Email Facebook WhatsApp X LinkedIn Bluesky Threads lighning bolt icon An icon in the shape of a lightning bolt.

Impact Link Save Saved Read in app This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Property taxes are among the many factors to consider when buying a home in the US. New Jersey has the highest property tax rate, which is nearly eight times the country's lowest. Hawaii has the lowest real estate taxes in the country, despite having the highest-valued homes. Owning a home is increasingly feeling more out of reach for many Americans.One of the many factors that add to the pressures and challenges of homeownership is the ongoing cost of property taxes, which persists even after a property is paid off. For some, property taxes are little more than an afterthought, while for others, they can be a significant financial setback on top of mortgage or insurance payments.A recent WalletHub study looked at the tax burden of owning real estate across the US and ranked all 50 states by the effective tax rate paid by homeowners in the state. The study used data from the US Census Bureau."Property taxes represent a recurring cost that can significantly affect financial planning, savings capacity, and long-term affordability," Mitchell Franklin, an accounting professor at Le Moyne College in New York, said in the study. "Even if a home's purchase price appears manageable, high property taxes can dramatically increase the overall cost of ownership and strain household budgets." Across the country, states like New Jersey and Illinois top the charts with the highest tax rates of 2.11% and 2.01% respectively.In New Jersey, the owners of a home priced at the state's median home value, which in the state is $454,400, pay an annual $9,590.Meanwhile, in states like Alabama, which has the second-lowest real estate tax rate in the country, the owners of a home at the state's median home value, which in this case is $209,900, pay about $788 each year. These 20 US states have the lowest real estate tax rates. See how they rank. 20. Virginia Virginia ranks 20th in the country for lowest real estate tax rates. John McAdorey/Shutterstock Effective real estate tax rate: 0.73%State median home value: $383,700Annual taxes on a home with a state median value: $2,790 18. (tie) Montana Montana's homes have a median value of $375,800.

Scott Harvey Aerials/Shutterstock Effective real estate tax rate: 0.72%State median home value: $375,800Annual taxes on a home with a state median value: $2,693 18. (tie) Mississippi Mississippi taxes homeowners 0.72% in property taxes each year. Trong Nguyen/Shutterstock Effective real estate tax rate: 0.72%State median home value: $169,800Annual taxes on a home with a state median value: $1,215 16. (tie) New Mexico The owners of a home priced at New Mexico's median home value pay an annual $1,731 in property taxes. trekandshoot/Shutterstock Effective real estate tax rate: 0.70%State median home value: $248,100Annual taxes on a home with a state median value: $1,731 16. (tie) California California homes have a median value of $734,700 — the second highest in the nation. Jacob Boomsma/Shutterstock Effective real estate tax rate: 0.70%State median home value: $734,700Annual taxes on a home with a state median value: $5,124 15.

North Carolina North Carolina homeowners pay a property tax rate of 0.66% each year. zimmytws/Shutterstock Effective real estate tax rate: 0.66%State median home value: $288,900Annual taxes on a home with a state median value: $1,896 14. Wyoming The median home in Wyoming is priced at $309,700. Jacob Boomsma/Shutterstock Effective real estate tax rate: 0.57%State median home value: $309,700Annual taxes on a home with a state median value: $1,767 12. (tie) Louisiana Owners of a home priced at Louisiana's median value pay an annual $1,180 in property taxes. Marcus E Jones/Shutterstock Effective real estate tax rate: 0.55%State median home value: $216,500Annual taxes on a home with a state median value: $1,180 12. (tie) Arkansas Arkansas has a property tax rate of 0.55%. Jonathan C Wear/Shutterstock Effective real estate tax rate: 0.55%State median home value: $188,000Annual taxes on a home with a state median value: $1,040 11.

West Virginia West Virginia homes are the lowest priced in the country, with a median home value of $162,600. Kyle J Little/Shutterstock Effective real estate tax rate: 0.53%State median home value: $162,600Annual taxes on a home with a state median value: $865 10. Utah Someone owning a home priced at Utah's median home value would pay an annual $2,525 in property taxes. Nicholas J Klein/Shutterstock Effective real estate tax rate: 0.52%State median home value: $489,400Annual taxes on a home with a state median value: $2,525 8. (tie) Delaware Delaware has an effective property tax rate of 0.50%. Felix Mizioznikov/Shutterstock Effective real estate tax rate: 0.50%State median home value: $352,000Annual taxes on a home with a state median value: $1,768 8. (tie) Tennessee A median Tennessee home is valued at $286,700. Skywalk Orr/Shutterstock Effective real estate tax rate: 0.50%State median home value: $286,700Annual taxes on a home with a state median value: $1,442 7. Idaho The owner of a home priced at Idaho's median real estate value would pay an annual $2,038 in property taxes. Charles Knowles/Shutterstock Effective real estate tax rate: 0.49%State median home value: $418,600Annual taxes on a home with a state median value: $2,038 4. (tie) Arizona Arizona ties with Colorado and South Carolina for fourth place in real estate tax rates at 0.48%. Allison H. Smith/Shutterstock Effective real estate tax rate: 0.48%State median home value: $394,500Annual taxes on a home with a state median value: $1,879 4. (tie) Colorado A median home in Colorado is valued at $539,400. Trong Nguyen/Shutterstock Effective real estate tax rate: 0.48%State median home value: $539,400Annual taxes on a home with a state median value: $2,602 4. (tie) South Carolina The owner of a home priced at South Carolina's median home value pays an annual $1,251 in property taxes. Frame Craft 8/Shutterstock Effective real estate tax rate: 0.48%State median home value: $259,000Annual taxes on a home with a state median value: $1,251 3. Nevada Nevada ranks third-lowest in real estate tax rates. Nicholas J Klein/Shutterstock Effective real estate tax rate: 0.47%State median home value: $435,400Annual taxes on a home with a state median value: $2,027 2. Alabama Alabama, with a median home priced at $209,900, has the second-lowest property taxes in the US. Felix Mizioznikov/Shutterstock Effective real estate tax rate: 0.38%State median home value: $209,900Annual taxes on a home with a state median value: $788 1. Hawaii Hawaii has the lowest effective real estate tax rate in the country at 0.27%, while also having the highest median home value at $839,100. Joshua Lehew/Shutterstock Effective real estate tax rate: 0.27%State median home value: $839,100Annual taxes on a home with a state median value: $2,239