Are There States With No Property Tax? Lowest Property Tax States (2026)
Updated · Reviewed by Deepak Middha, Chartered Accountant
The short answer
No — every state has a property tax. The lowest is Hawaii, where homeowners pay an average effective rate of 0.29% of home value, then Alabama (0.37%). The highest are New Jersey and Illinois at 1.88%. Figures are for 2024, the latest published (Tax Foundation, from Census data).
Property tax by state calculator
That is $1,750 a year more than the same home at the US average rate of 0.90%. Your actual bill depends on your county's assessment and rates, and on any exemption you qualify for.
What to do next: compare the income tax side with states with no income tax, and ask your county assessor about homestead, senior or veteran exemptions.
Key takeaways
- No state is property-tax free; the lowest average effective rate is Hawaii's 0.29% (2024).
- The highest are New Jersey and Illinois at 1.88%, more than six times Hawaii's rate.
- The US average is 0.90% of home value a year.
- These are statewide averages; your county's rates, assessment and exemptions decide your actual bill.
- No income tax does not mean low property tax — Texas and New Hampshire are both in the top ten.
Lowest and highest property tax states (2024)
| State | Effective rate | Tax on a $300,000 home | |
|---|---|---|---|
| Lowest #1 | Hawaii | 0.29% | $870 |
| Lowest #2 | Alabama | 0.37% | $1,110 |
| Lowest #3 | Utah | 0.48% | $1,440 |
| Lowest #4 | Arizona | 0.48% | $1,440 |
| Lowest #5 | South Carolina | 0.49% | $1,470 |
| Highest #1 | New Jersey | 1.88% | $5,640 |
| Highest #2 | Illinois | 1.88% | $5,640 |
| Highest #3 | Connecticut | 1.54% | $4,620 |
| Highest #4 | Vermont | 1.51% | $4,530 |
| Highest #5 | New Hampshire | 1.50% | $4,500 |
| State | Rate | Rank |
|---|---|---|
| Alabama | 0.37% | 49 |
| Alaska | 0.94% | 20 |
| Arizona | 0.48% | 47 |
| Arkansas | 0.56% | 37 |
| California | 0.70% | 32 |
| Colorado | 0.50% | 44 |
| Connecticut | 1.54% | 3 |
| Delaware | 0.54% | 39 |
| District of Columbia | 0.60% | (36) |
| Florida | 0.78% | 27 |
| Georgia | 0.79% | 25 |
| Hawaii | 0.29% | 50 |
| Idaho | 0.50% | 45 |
| Illinois | 1.88% | 2 |
| Indiana | 0.76% | 29 |
| Iowa | 1.33% | 9 |
| Kansas | 1.21% | 13 |
| Kentucky | 0.74% | 31 |
| Louisiana | 0.55% | 38 |
| Maine | 0.98% | 19 |
| Maryland | 0.92% | 21 |
| Massachusetts | 1.00% | 16 |
| Michigan | 1.19% | 14 |
| Minnesota | 1.00% | 17 |
| Mississippi | 0.58% | 36 |
| Missouri | 0.89% | 23 |
| Montana | 0.61% | 35 |
| Nebraska | 1.44% | 6 |
| Nevada | 0.50% | 43 |
| New Hampshire | 1.50% | 5 |
| New Jersey | 1.88% | 1 |
| New Mexico | 0.63% | 34 |
| New York | 1.30% | 11 |
| North Carolina | 0.66% | 33 |
| North Dakota | 0.92% | 22 |
| Ohio | 1.36% | 8 |
| Oklahoma | 0.79% | 26 |
| Oregon | 0.81% | 24 |
| Pennsylvania | 1.26% | 12 |
| Rhode Island | 1.12% | 15 |
| South Carolina | 0.49% | 46 |
| South Dakota | 1.00% | 18 |
| Tennessee | 0.52% | 41 |
| Texas | 1.40% | 7 |
| Utah | 0.48% | 48 |
| Vermont | 1.51% | 4 |
| Virginia | 0.78% | 28 |
| Washington | 0.75% | 30 |
| West Virginia | 0.51% | 42 |
| Wisconsin | 1.32% | 10 |
| Wyoming | 0.53% | 40 |
Property tax exemptions that can cut your bill
- Homestead exemption — takes part of the value of your main home off the tax roll, or caps how fast its assessed value can rise.
- Senior exemptions and freezes — lower or freeze the bill for older owners, sometimes with an income limit.
- Veteran and disability exemptions — often larger for veterans with a service-connected disability.
- Deferrals — let some owners postpone the tax until the home is sold.
Each state sets these and counties run them, usually with an application deadline. Check your county assessor’s website. Selling a home has its own tax rules — see sold your home.
Income tax vs property tax by state
A state with no income tax still taxes property, and some of them lean on it heavily: Texas and New Hampshire are in the top ten for property tax while taxing no wages. Weigh both before you move — the nine no-income-tax states are listed in states with no income tax, and the state income tax calculator covers the rest.
Frequently asked questions
What states don't have property tax?
None. Every state and the District of Columbia taxes real estate, and in the Tax Foundation's table of effective rates on owner-occupied homes every state has a rate above zero. The lowest is Hawaii, where owners pay about 0.29% of their home's value a year (2024 data). Some homeowners pay little or nothing through exemptions, but no state lacks the tax.
Which state has the lowest property tax?
Hawaii, at a 0.29% average effective rate in 2024, followed by Alabama (0.37%), Utah (0.48%), Arizona (0.48%) and South Carolina (0.49%). On a $300,000 home that is roughly $870 a year in Hawaii, before any exemption.
Which state has the highest property tax?
New Jersey and Illinois, both at 1.88% of home value in 2024, with New Jersey ranked first. Connecticut (1.54%), Vermont (1.51%) and New Hampshire (1.50%) complete the top five. A $300,000 home in New Jersey would carry about $5,640 a year at that average rate.
How is property tax by state calculated here?
The calculator multiplies your home value by the state's mean effective property tax rate on owner-occupied housing: total real estate taxes paid divided by total home value, from Census American Community Survey data compiled by the Tax Foundation. It is a statewide average, so your county's rate, assessment ratio and any exemptions will make your real bill higher or lower.
Can seniors or veterans stop paying property tax?
In many places they can pay less, and sometimes nothing. Most states offer some mix of homestead exemptions for a primary residence, senior exemptions, assessment freezes or deferrals, and exemptions for disabled veterans — but the rules, amounts and application deadlines are set by each state and administered by counties. Ask your county assessor what you qualify for.
Do states with no income tax have higher property taxes?
Some do and some do not. Among the nine states with no wage tax, Texas (1.40%) and New Hampshire (1.50%) are well above the 0.90% US average, while Nevada (0.50%) and Wyoming (0.53%) are well below it.