Six States with the lowest property taxes
Image by Christian Joudrey
For homeowners and prospective buyers, property taxes play a pivotal role in determining the overall cost of owning a home. While these taxes fund essential public services, they can also be a significant financial burden. Fortunately, some states offer more favorable property tax rates, providing relief to residents. Based on the latest data, here are the six states with the lowest effective property tax rates in 2025.
1. Hawaii – 0.27 %
Hawaii is the state with the lowest effective rate of property taxes in the United States. Hawaii’s home prices are among the highest of the United States, but the low property tax burden eases the financial burden on homeowners. Residents also benefit from the state’s policy that uses assessed values which are lower than market value. Hawaii is a great place for retirees, investors and those who are able to afford the initial cost of a house. They can also enjoy ongoing tax savings. Many residents are able to lower their taxes even more with the homestead exemptions.
2. Alabama – 0.38 %
Alabama offers substantial tax savings to property owners. Alabama’s effective tax rate is just 0.38%. This makes it one of the most affordable states to live in. Alabama also allows for the deduction of federal taxes on state returns, which is a financial benefit. Alabama’s modest property taxes and lower home prices make it a great choice for retirees and young families who want to enjoy Southern charm and hospitality without paying high costs of living. Nevada – 0.49 %
In Nevada property taxes are very low. The effective rate is only 0.49 %. It is also known for having no personal income taxes, making it attractive to both homeowners and entrepreneurs. Nevada’s tax abatement law caps the annual increase of a homeowner’s tax bill. This protects residents from sudden, steep increases. Nevada’s low taxes are a great place to live, whether you want to be near the thrills of Las Vegas or the beauty of Reno and Lake Tahoe. Colorado – 0.49%
Matching Nevada’s 0.49% rate, Colorado has seen a surge in popularity thanks to its stunning landscapes, booming job market, and relatively low property taxes. The low property tax rate allows homeowners to manage their monthly costs, even though Denver and Boulder have higher median home prices than the national average. Colorado offers exemptions from property taxes for veterans and seniors with disabilities, allowing them to save even more. For active retirees and young professionals alike, Colorado presents a balanced mix of outdoor adventure and economic opportunity.
Image by Leo Heisenberg
5. South Carolina – 0.5%
South Carolina has a property tax rate that is only 0.51%, and a cost of living that is generally affordable. South Carolina homeowners enjoy generous exemptions. This is especially true for senior citizens, veterans and people with disabilities. South Carolina is a popular destination not only for its financial benefits, but also because of the rich culture and historic towns. Its beautiful coastline and rich culture are all reasons why retirees, as well as those seeking warmer climates, choose to live there. South Carolina’s low-cost lifestyle is made luxurious by the proximity of mountains and beaches. Arizona – 0.5%
Arizona is the last state on our list, with a property tax rate that’s effective at 0.52%. Arizona is a popular destination for families and retirees because of its diverse landscapes and growing cities. Arizona is a great place to live if you’re looking for sunshine, stunning natural parks, and affordable homeownership. Arizona is the perfect place to live if you want sunshine, beautiful natural parks and an affordable home. Hawaii, Alabama and Nevada are proof that you can enjoy a good quality of life while not paying astronomical property taxes. Before making a decision, you should look at all costs, including the local tax policies, and not just the price tag. A little research now can lead to big financial benefits later.
Are low property taxes enough to make you consider moving, or are other factors like climate, job opportunities, and culture just as important?
Read More:
Is Buying a Home Still Worth It? What $300K Gets You in Different States
10 Big Cities Where The Cost Of Living Is Still Affordable
Riley is an Arizona native with over nine years of writing experience. She has written on everything from personal finance, travel, digital marketing and pop culture. She spends her free time reading, spending time outdoors, and cuddling her two corgis.
