Property taxes have become one of the most unpopular costs of owning a home. This November, voters in Florida, Louisiana, North Carolina, Oklahoma, Tennessee and Wyoming will decide on property tax relief measures.
If low property taxes matter to you, five states stand out. According to the Tax Foundation, they’re the only states where homeowners pay an effective rate below 0.5% of their home’s value each year.
But there’s a catch that many buyers miss: a low tax rate can still produce a big bill if homes are expensive. Here’s the full picture.
The 5 states with the lowest property tax rates
The “effective rate” is the median property tax paid divided by the median value of owner-occupied homes. These figures are for 2024, the most recent year available:
| State | Effective property tax rate |
|---|---|
| Hawaii | 0.29% |
| Alabama | 0.37% |
| Utah | 0.48% |
| Arizona | 0.48% |
| South Carolina | 0.49% |
Four of the five, all except Alabama, saw their rates dip slightly compared with the year before.
And the states with the highest
At the other end of the scale:
| State | Effective property tax rate |
|---|---|
| New Jersey | 1.88% |
| Illinois | 1.88% |
| Connecticut | 1.54% |
| Vermont | 1.54% |
| New Hampshire | 1.50% |
One surprise: Texas, often thought of as a low-tax state because it has no income tax, ranks 7th highest at 1.40%. That fits a pattern we noted in our guide to states that don’t tax retirement income. States without an income tax often lean harder on property and sales taxes.
Why a low rate doesn’t guarantee a low bill
Your property tax bill depends on two things: the rate and the value of your home. A cheap rate on an expensive house can still add up to a hefty bill.
Hawaii is the best example. It has the lowest rate in the country, but homes there are expensive. The median property tax bill in Honolulu County is about $2,553 a year. Compare that with Buchanan County, Virginia, where the median bill is about $404, even though Virginia’s statewide rate (0.78%) is far higher than Hawaii’s.
Bills can vary hugely within a single state, too. In Virginia, that same $404 median in Buchanan County compares with more than $10,000 in Falls Church City, near Washington, D.C. Urban areas tend to have higher bills.
Still, the rate matters. An expensive home in Honolulu will typically have a smaller tax bill than a similar home in New Jersey.
And as home prices have climbed, so have bills, even in low-rate states. The median U.S. home sale price reached $410,700 in the second quarter of 2026, according to the Federal Reserve Bank of St. Louis, nearly 30% higher than in the same quarter of 2020.
Low taxes are drawing buyers
Real estate agents in low-tax states say property taxes are a big part of why people are moving, according to interviews with Realtor.com.
South Carolina agents say buyers are arriving from New York, Connecticut, California and especially Illinois. “The state that sends us the greatest number of transplants is Illinois,” said Justin Winter of Forbes Global Properties, adding that taxes are one of the top reasons people give.
But South Carolina has a two-tier system that catches some newcomers out. Charleston County agent Leslie Turner gave this example: a $1 million home in downtown Charleston would pay about $4,584 a year in property tax as a primary residence, but about $16,246 as a second home or rental. The money has to come from somewhere, she added, and in Charleston County that includes a sales tax of around 9%.
Turner also said values in many areas have risen 80% to 90% in the past six years, so low rates don’t stop bills from climbing.
Arizona is seeing a similar pattern, with buyers coming from California, Washington, Oregon and Chicago. Scottsdale broker Shawna Warner said “buyers are increasingly focused on the overall cost of homeownership,” and Arizona’s low property taxes, along with its flat 2.5% income tax, are a big draw.
Relief on the ballot
With bills rising almost everywhere, property tax relief is a hot political issue. Measures to reduce or reform property taxes are on the ballot this November in Florida, Louisiana, North Carolina, Oklahoma, Tennessee and Wyoming.
What it means if you’re retired or planning to be
For people living on Social Security and savings, property tax is one of the few housing costs that keeps rising even after the mortgage is paid off. A few things to keep in mind:
- Look at the whole tax picture. A state with no income tax can still have high property taxes, as Texas shows. A state with low property taxes may have a high sales tax. Add up income, property and sales taxes together.
- Check the bill, not just the rate. Ask for the actual tax bill on any home you’re considering, and find out whether it changes if the home is a primary residence or a second home.
- Ask about senior relief. Many states and counties offer property tax breaks for older homeowners, such as homestead exemptions, assessment freezes or deferral programs. Your county assessor’s office can tell you what’s available and how to apply.
- Watch the ballot. If you live in one of the six states voting on property tax relief this November, the outcome could affect your bill next year.
Sources: Tax Foundation, “Property Taxes by State and County, 2026”, the Federal Reserve Bank of St. Louis, and reporting by Realtor.com published in the New York Post (October 21, 2026).
Jackson is a dedicated USA news writer, who covers important topics such as Social Security payment schedules, COLA increases, IRS tax refunds, stimulus payment announcements, Medicare eligibility, retirement benefits, and changes to state driving laws. His goal is to provide clear, informative, and easy-to-follow articles that help retirees, seniors, taxpayers, and American families stay informed.