There are no U.S. states with no property tax. Property taxes are levied at the local level (county, city, or township) in every state to fund essential services like public schools, police, fire departments, and road maintenance.
However, some states have significantly lower average property tax rates than others, making them attractive for homeowners and investors:
Hawaii (0.27% average rate) – Lowest effective rate, though high home prices can offset savings.
Alabama (0.38%–0.40%)
Colorado (0.49%)
Nevada (0.49%–0.50%)
South Carolina (0.51%–0.53%)
Delaware (0.53%–0.55%)
Idaho (0.53%)
Utah (0.53%–0.55%)
West Virginia (0.54%–0.55%)
Louisiana (0.51%–0.55%)
These states often rely on alternative revenue sources (like tourism, sales taxes, or income taxes) to reduce the burden on property owners. While no state eliminates property taxes entirely, Hawaii, Alabama, and Colorado are frequently cited as the best options for low property tax costs.
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US Property taxes by state
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Why do some states have higher property taxes?
Property taxes vary significantly from state to state, and states with high property taxes could find themselves there for several reasons. Some states value public services and require significant funding to provide those services for their residents. And other states don’t have many alternative revenue sources to make up funding gaps, so they rely on property taxes to do the heavy lifting.
How can I lower my property tax bill?
You can lower your property tax bill by checking local guidance for homestead (or other) exemptions, challenging the property assessment with your local tax assessor, limiting home improvements that might drastically increase property value, or electing local officials who pledge to lower property tax rates.
Though you might not live in a state with no property taxes, hopefully, you can find a place that almost feels like it.
What’s the best state to move to for low property taxes?
Just because there are no states with no property taxes doesn’t mean they have to break the bank. There are several states with property tax rates lower than the national average, such as Hawaii, Alabama, and Louisiana, to name a few.
Videos
https://www.realtor.com/advice/finance/states-eliminate-property-tax/
Florida, Illinois , Kansas, Ohio, North Dakota, Pennsylvania
Proposals to eliminate property taxes in these states—and similar successful legislation in places like Montana to reduce taxes on primary homeowners—show how this movement is gaining momentum. The greatest challenge to these laws, however, is twofold.
Firstly, statewide action risks infringing on local governments, which are responsible for creating their own formulas for levying property taxes. A solution that works for one city is unlikely to work for more rural areas in the state, possibly creating insurmountable revenue shortfalls.
Likewise, any efforts to offset the taxes on wealthier homeowners (like owners of second homes) face significant headwinds at the polls. Overwhelmingly, these are the people who show up to vote.