There are no states with no property tax. Every state allows local governments to tax homes and land, and those local bills fund schools, roads, police and fire services. What varies is the burden: effective property tax rates on owner-occupied homes run from 0.29% in Hawaii and 0.37% in Alabama to 1.88% in New Jersey and Illinois.
The table ranks property tax by state from lowest to highest, using the effective rates the Tax Foundation calculated from 2024 Census Bureau survey data, and shows what each rate means on a $350,000 home. Below it are the lowest- and highest-tax states, and the exemptions that can bring a homeowner’s bill down to zero.
| Rank (lowest first) | State | Effective property tax rate | Yearly tax on a $350,000 home |
|---|---|---|---|
| 1 | Hawaii | 0.29% | $1,015 |
| 2 | Alabama | 0.37% | $1,295 |
| 3 | Utah | 0.48% | $1,680 |
| 4 | Arizona | 0.48% | $1,680 |
| 5 | South Carolina | 0.49% | $1,715 |
| 6 | Idaho | 0.50% | $1,750 |
| 7 | Colorado | 0.50% | $1,750 |
| 8 | Nevada | 0.50% | $1,750 |
| 9 | West Virginia | 0.51% | $1,785 |
| 10 | Tennessee | 0.52% | $1,820 |
| 11 | Wyoming | 0.53% | $1,855 |
| 12 | Delaware | 0.54% | $1,890 |
| 13 | Louisiana | 0.55% | $1,925 |
| 14 | Arkansas | 0.56% | $1,960 |
| 15 | Mississippi | 0.58% | $2,030 |
| 16 | Montana | 0.61% | $2,135 |
| 17 | New Mexico | 0.63% | $2,205 |
| 18 | North Carolina | 0.66% | $2,310 |
| 19 | California | 0.70% | $2,450 |
| 20 | Kentucky | 0.74% | $2,590 |
| 21 | Washington | 0.75% | $2,625 |
| 22 | Indiana | 0.76% | $2,660 |
| 23 | Virginia | 0.78% | $2,730 |
| 24 | Florida | 0.78% | $2,730 |
| 25 | Oklahoma | 0.79% | $2,765 |
| 26 | Georgia | 0.79% | $2,765 |
| 27 | Oregon | 0.81% | $2,835 |
| 28 | Missouri | 0.89% | $3,115 |
| 29 | North Dakota | 0.92% | $3,220 |
| 30 | Maryland | 0.92% | $3,220 |
| 31 | Alaska | 0.94% | $3,290 |
| 32 | Maine | 0.98% | $3,430 |
| 33 | South Dakota | 1.00% | $3,500 |
| 34 | Minnesota | 1.00% | $3,500 |
| 35 | Massachusetts | 1.00% | $3,500 |
| 36 | Rhode Island | 1.12% | $3,920 |
| 37 | Michigan | 1.19% | $4,165 |
| 38 | Kansas | 1.21% | $4,235 |
| 39 | Pennsylvania | 1.26% | $4,410 |
| 40 | New York | 1.30% | $4,550 |
| 41 | Wisconsin | 1.32% | $4,620 |
| 42 | Iowa | 1.33% | $4,655 |
| 43 | Ohio | 1.36% | $4,760 |
| 44 | Texas | 1.40% | $4,900 |
| 45 | Nebraska | 1.44% | $5,040 |
| 46 | New Hampshire | 1.50% | $5,250 |
| 47 | Vermont | 1.51% | $5,285 |
| 48 | Connecticut | 1.54% | $5,390 |
| 49 | Illinois | 1.88% | $6,580 |
| 50 | New Jersey | 1.88% | $6,580 |
| n/a | District of Columbia | 0.60% | $2,100 |
Why There Are No States With No Property Tax
Property tax is a local tax in every state. It made up 28.9% of all state and local tax collections in fiscal year 2023, more than any other single tax, and 70% of what local governments collected, according to the Tax Foundation. A state can abolish its income or sales tax and fund itself in other ways, but local schools and services have no comparable replacement for the property tax.
The nearest thing to property-tax-free land is in Alaska. Significant parts of the state lie outside any borough that levies a property tax, though they hold so few people that federal surveys largely leave them out, and Alaska’s statewide effective rate is still 0.94%.
An effective rate is the tax actually paid divided by the home’s value. It is the only fair way to compare states, because nominal rates, often quoted in mills per $1,000, are applied to assessed values that can be a fraction of market value and differ from county to county. The figures come from the Census Bureau’s American Community Survey.
The 10 States With the Lowest Property Taxes
These are the lowest effective rates in 2024, with the yearly bill on a $350,000 home at each rate:
1. Hawaii: 0.29%
Effective rate: 0.29% · Tax on a $350,000 home: $1,015
Hawaii has the lowest effective property tax rate in the country, down from 0.30% in 2023, and Maui County’s rate of about 0.17% is among the lowest of any US county. On a $350,000 home the state rate works out to about $1,015 a year, less than a sixth of the bill in New Jersey.
2. Alabama: 0.37%
Effective rate: 0.37% · Tax on a $350,000 home: $1,295
Alabama’s low property tax is offset at the register. Its local sales taxes average 5.46%, the highest local rate in the country, which our guide to sales tax by state covers in full. Choctaw County, with a 0.18% effective rate, is among the lowest-taxed counties in the US.
3. Utah: 0.48%
Effective rate: 0.48% · Tax on a $350,000 home: $1,680
Utah ties Arizona at 0.48%, down from 0.50% in 2023, which makes it the lowest-taxed state in the Mountain West apart from Arizona.
4. Arizona: 0.48%
Effective rate: 0.48% · Tax on a $350,000 home: $1,680
Arizona’s rate puts a $350,000 home at about $1,680 a year, roughly a quarter of the bill the same house would carry in New Jersey or Illinois.
5. South Carolina: 0.49%
Effective rate: 0.49% · Tax on a $350,000 home: $1,715
South Carolina has the lowest rate in the Southeast after Alabama, down from 0.51% in 2023. Neighboring North Carolina sits at 0.66% and Georgia at 0.79%.
6. Idaho: 0.50%
Effective rate: 0.50% · Tax on a $350,000 home: $1,750
Idaho, Colorado and Nevada all sit at 0.50%. Idaho’s rate fell from 0.53% in 2023, while Colorado’s held steady and Nevada’s slipped from 0.51%.
7. Colorado: 0.50%
Effective rate: 0.50% · Tax on a $350,000 home: $1,750
Colorado’s effective rate was 0.50% in both 2023 and 2024. Its property taxes are low, but its local sales taxes average 4.99%, the third highest local rate in the country.
8. Nevada: 0.50%
Effective rate: 0.50% · Tax on a $350,000 home: $1,750
Nevada pairs one of the lowest property tax rates with no personal income tax, a combination that makes it a regular on our list of states with no income tax.
9. West Virginia: 0.51%
Effective rate: 0.51% · Tax on a $350,000 home: $1,785
West Virginia’s rate was unchanged at 0.51% from 2023 to 2024, the lowest in the Mid-Atlantic, where neighboring Pennsylvania charges 1.26% and Maryland 0.92%.
10. Tennessee: 0.52%
Effective rate: 0.52% · Tax on a $350,000 home: $1,820
Tennessee rounds out the ten. With no income tax on wages and a low property tax, it relies heavily on sales tax, which is why its combined sales tax rate is the second highest in the US.
The States With the Highest Property Taxes
The highest effective rates in 2024 were:
- New Jersey and Illinois: 1.88%, about $6,580 a year on a $350,000 home
- Connecticut: 1.54%
- Vermont: 1.51%
- New Hampshire: 1.50%
- Nebraska: 1.44%
- Texas: 1.40%
High property tax often stands in for other taxes. New Hampshire and Texas rely heavily on property tax because neither has a broad income tax, and New Hampshire has no sales tax either. New Jersey and Illinois are different: they charge high property taxes alongside significant income and sales taxes. Among the nine states with no income tax, New Hampshire’s 1.50% is the highest property tax rate and Nevada’s 0.50% the lowest.
In dollars, the biggest bills cluster around New York City. Counties such as Bergen in New Jersey and Nassau, Suffolk and Westchester in New York have median property tax bills above $10,000 a year.
How Some Homeowners Pay No Property Tax
A state cannot be property-tax-free, but an individual homeowner can be. Common routes include:
- Full exemptions for disabled veterans: Texas exempts the entire appraised value of the homestead of a veteran rated 100% disabled or unemployable by the VA, and Florida fully exempts the homestead of veterans who are totally and permanently disabled from service
- Homestead exemptions: a set amount of a primary home’s value is exempt, such as the first $25,000 in Florida, plus a second, inflation-adjusted amount that applies to non-school taxes
- Senior and disability relief: many states freeze assessments, defer taxes or add exemptions for older or disabled owners, with rules set state by state
- Living where no local levy exists: parts of unorganized Alaska
Texas explains its veteran exemption and the rest of its homestead rules on the Comptroller’s property tax exemptions page. In Florida, the Department of Revenue explains the homestead exemption, and applications go through the county property appraiser.
Renters pay property tax too, just indirectly, through rent. That is one reason the cheapest places to live are not always the lowest-tax ones, as our ranking of the cheapest states to live in shows.
Frequently Asked Questions
Which states have no property tax?
None. All 50 states and DC have property taxes, levied mostly by local governments. Hawaii has the lowest effective rate at 0.29%, and parts of unorganized Alaska have no local property tax at all.
Which state has the lowest property tax?
Hawaii, with an effective rate of 0.29% in 2024, followed by Alabama at 0.37% and Arizona and Utah at 0.48%.
Which state has the highest property tax?
New Jersey and Illinois tie at 1.88%, followed by Connecticut at 1.54% and Vermont at 1.51%.
Are there states with no property tax for seniors?
No state exempts every senior, but most offer relief such as assessment freezes, deferrals or extra exemptions for older homeowners. Eligibility, income limits and amounts vary, so check your county assessor’s office.
Related Articles
Get the Fox Bulletin briefing
The stories that matter, in your inbox. No spam, unsubscribe anytime.
Newsletter signup will be available soon.
Related stories
Minimum Wage by State 2026: Every State’s Rate, Plus Tipped Wages
The federal minimum wage is still $7.25, but 30 states and DC set higher rates, from $8.75 in West Virginia to $17.13 in Washington. Every state's rate and tipped wage for 2026.
States With No Sales Tax: All 5, Plus Sales Tax by State
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. What each one taxes instead, and the 2026 sales tax rate in every other state.
Tallest Buildings in the World: Top 10 Ranked by Height
The Burj Khalifa has been the tallest building in the world since 2010, and 16 years later nothing has come close.