The 20 US States With the Lowest Property Tax Rates in 2026, Ranked

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

Northern Virginia Suburbs, Virginia, USA - Aerial view of Town homes, houses man-made ponds and gated communities in the suburbs of Northern Virginia near Leesburg — 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: $383,700

Annual taxes on a home with a state median value: $2,790

18. (tie) Montana

Aerial view of Willow Creek, 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: $375,800

Annual taxes on a home with a state median value: $2,693

18. (tie) Mississippi

New development single family houses near row of manufactured, modular, and mobile homes in Richland, Rankin County, Mississippi suburb Jackson, USA lush green trees. Aerial view affordable housing — Mississippi taxes homeowners 0.72% in property taxes each year.

Trong Nguyen/Shutterstock

Effective real estate tax rate: 0.72%

State median home value: $169,800

Annual taxes on a home with a state median value: $1,215

16. (tie) New Mexico

Albuquerque New Mexico Homes Aerial view — 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: $248,100

Annual taxes on a home with a state median value: $1,731

16. (tie) California

Aerial View of Napa, California during Summer — 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: $734,700

Annual taxes on a home with a state median value: $5,124

15. North Carolina

Aerial view of new homes in a housing development with tree lined streets in Raleigh 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: $288,900

Annual taxes on a home with a state median value: $1,896

14. Wyoming

Aerial View of Downtown Casper, Wyoming at Dusk on Christmas Day — The median home in Wyoming is priced at $309,700.

Jacob Boomsma/Shutterstock

Effective real estate tax rate: 0.57%

State median home value: $309,700

Annual taxes on a home with a state median value: $1,767

12. (tie) Louisiana

aerial shot of homes and marshland with water and lush green trees in Chalmette Louisiana USA — 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: $216,500

Annual taxes on a home with a state median value: $1,180

12. (tie) Arkansas

Fort Smith, Arkansas - November 12th, 2023: Aerial view of Judge Parker's Courthouse and the Fort Smith National Historic Site — Arkansas has a property tax rate of 0.55%.

Jonathan C Wear/Shutterstock

Effective real estate tax rate: 0.55%

State median home value: $188,000

Annual taxes on a home with a state median value: $1,040

11. West Virginia

Aerial View of the Main Street With Shops in Harpers Ferry 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: $162,600

Annual taxes on a home with a state median value: $865

10. Utah

Aerial Suburban Neighborhoods and Desert Mountains in Hurricane Utah Fly Over — 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: $489,400

Annual taxes on a home with a state median value: $2,525

8. (tie) Delaware

Aerial photo residential upscale homes in Brookside Delaware USA — Delaware has an effective property tax rate of 0.50%.

Felix Mizioznikov/Shutterstock

Effective real estate tax rate: 0.50%

State median home value: $352,000

Annual taxes on a home with a state median value: $1,768

8. (tie) Tennessee

Beautiful Homes in Tennessee. — A median Tennessee home is valued at $286,700.

Skywalk Orr/Shutterstock

Effective real estate tax rate: 0.50%

State median home value: $286,700

Annual taxes on a home with a state median value: $1,442

7. Idaho

Panoramic of Boise City and residential aerial view of homes with fall colors — 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: $418,600

Annual taxes on a home with a state median value: $2,038

4. (tie) Arizona

a neighborhood in northern 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: $394,500

Annual taxes on a home with a state median value: $1,879

4. (tie) Colorado

Effective real estate tax rate: 0.48%

State median home value: $539,400

Annual taxes on a home with a state median value: $2,602

4. (tie) South Carolina

Golden sunrise light bathes downtown Charleston, South Carolina, with historic buildings and streets visible from an aerial view. — 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: $259,000

Annual taxes on a home with a state median value: $1,251

3. Nevada

Aerial Residential Neighborhood and Community Park in Las Vegas 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: $435,400

Annual taxes on a home with a state median value: $2,027

2. Alabama

Beautiful aerial photo Downtown Birmingham Alabama USA — 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: $209,900

Annual taxes on a home with a state median value: $788

1. Hawaii

Panoramic Aerial view of condo resorts along Wailea beach path in Maui, Hawaii green landscape and coastal areas in Wailea-Makena during golden hour sunset — 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: $839,100

Annual taxes on a home with a state median value: $2,239

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The 20 US States With the Lowest Property Tax Rates in 2026, Ranked

20. Virginia

18. (tie) Montana

18. (tie) Mississippi

16. (tie) New Mexico

16. (tie) California

15. North Carolina

14. Wyoming

12. (tie) Louisiana

12. (tie) Arkansas

11. West Virginia

10. Utah

8. (tie) Delaware

8. (tie) Tennessee

7. Idaho

4. (tie) Arizona

4. (tie) Colorado

4. (tie) South Carolina

3. Nevada

2. Alabama

1. Hawaii

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