Where Are the Lowest Property Tax Rates?

In this guide, we will look at the places with the property tax rates. So you have a mortgage with a fixed rate. The amount you pay each month can still go up or down. This happens because the people you borrowed from usually add property taxes and insurance for your home to the payment, and these things can change. The value of properties goes up. Property tax rates can go up, too.

Where Are the Lowest Property Tax Rates? Best States For Homebuyers 2026

After you buy a home, property taxes can affect your mortgage payments. They can also change your debt-to-income ratio and how affordable your home feels. Tax rates also play a role in how much you can borrow to buy a home. Your monthly payment may feel more comfortable in some states than others.

States with the lowest property tax rates are mostly in the West and South. ATTOM’s 2025 property tax analysis shows that Hawaii has the lowest rate at 0.33%, followed by Idaho at 0.39%.

Wyoming, Arizona, and Alabama each have a rate of 0.43%. Utah, Delaware, West Virginia, Tennessee, and Nevada also rank among the lowest effective property tax rates.

How Lower Property Taxes Benefit First-Time Buyers

Now that you know which states have property tax rates lets see what affects these rates in the U.S. States with low property tax rates often have local governments that don’t rely as much on real estate taxes. Other things like property values and local budgets also affect property tax rates. Some reports list states with the average property tax rates.

• ATTOM 2025 tax report lists Hawaii, Idaho, Wyoming, Arizona and Alabama as having low property tax rates.

Other states with property tax rates are Utah, Delaware, West Virginia, Tennessee and Nevada. Another report by WalletHub in 2026 ranks states with the property taxes.

• Hawaii and Alabama are listed as having property taxes.
• Nevada, Arizona, Colorado and South Carolina are also on the list.
• Idaho, Delaware, Tennessee and Utah round out the ten states with low property taxes.

The order of these states may be different, in rankings.

The Importance of Property Tax Rates in Home Purchasing.

Most homebuyers pay property taxes as part of their monthly mortgage payment. Some buyers choose to pay property taxes directly when they are due, rather than have the lender handle them. A homebuyer can lower their monthly payment if they have a lower property tax rate. Lenders look at the total monthly payment, which includes more than just the loan. Homebuyers also pay for property insurance, HOA dues, PMI, and other expenses.

Impact of Property Tax Rates on Mortgage Qualification

When you are figuring out the debt-to-income ratio for a mortgage lenders are going to include property taxes. Some people choose to buy homes in areas where property taxes lower so their monthly payments are not so high. Or maybe a house in a county with taxes will allow you to buy a more expensive house than someone who has the same salary and is buying a house in a county with lower taxes. Because of this people who are buying homes should find out what the property taxes will be before they make an offer on a house.

Property Taxes Affect Buying Power

A high property tax bill means you have buying power. This is because you will have a monthly payment and a higher debt-to-income ratio. This can make it harder for you to qualify for a loan whether it is an FHA loan a VA loan, a USDA loan, a conventional loan, a jumbo loan or a non-QM loan.

Lower Property Taxes Are Not the Same as Lower Cost Housing

Just because property tax rates are low does not mean that housing is affordable. This is because home prices can still be very high. For example Hawaii has high property values so even though the tax rate is low the total tax bill can still be very large. You should always look at both the tax rate and the price of the home to see how it will really affect your costs.

Property Tax Rate Examples

Some states are known for having property tax rates according to recent national data on property taxes.

Hawaii

Hawaii usually has the property tax rates. In 2025 ATTOM said the effective rate in Hawaii was 0.33%. WalletHub also said Hawaii had the rate in 2026. However since home prices in Hawaii are so high a low tax rate does not necessarily mean housing costs.

Idaho

In 2025 ATTOM said Idaho had the lowest property tax rate, at 0.39%. Idaho is a choice for people who want low taxes but buyers should check the local tax rates and costs before they decide to move there. Idaho had a property tax rate of 0.40% in 2025 according to ATTOM.

Arizona

In 2025 ATTOM said Arizona was one of the five states with the tax rates at 0.43%. WalletHub also said Arizona had taxes in 2026. You should check the property tax rates in each county in Arizona to get the up-to-date information.

Alabama

In 2025 ATTOM said Alabama’s property tax rate was 0.43%. WalletHub said Alabama had the lowest property taxes in 2026. Many parts of Alabama have housing and tax costs compared to states on the coast.

Utah

In 2025 ATTOM said Utah was one of the 10 states with the lowest property tax rates. When you are looking at homes in Utah you should consider both the home prices and the tax rates.

Delaware

In 2025 ATTOM said Delaware was one of the 10 states with the lowest effective tax rates and WalletHub also said Delaware had low taxes in 2026. Delaware has taxes, which can be good if you want to live on the East Coast.

West Virginia

In 2025 ATTOM and Kiplinger said West Virginia was one of the 10 states with the property taxes. Since home prices in areas of West Virginia are low the property tax bills are also lower. Tennessee is also one of the states with property taxes according to 2025 and WalletHubs 2026 reports. Tennessee has property taxes but home prices can be high, in popular areas.

Nevada

ATTOM’s 2025 and WalletHub’s 2026 reports list Nevada among the states with the lowest property taxes. Before buying in Nevada, compare property taxes with insurance, home prices, and local fees.

Why Property Tax Rankings Can Differ by Source

Different property tax rankings can result from the valuation method used to assess a home, the year of the data, and how the tax bill is calculated. Some rankings focus on the effective tax rate, while others focus on the median tax bill, the tax burden, or the affordability of the tax bill. For this reason a buyer should avoid relying on one national property tax ranking. Property tax rankings can be helpful. Your final property tax bill really depends on where you live. It depends on your county, city, school district, how much your property is worth what exemptions you qualify for and rules, for assessing property value. The effective property tax rate is the percentage of your homes value that you pay in property taxes. On the hand your actual property tax bill is the total amount you owe. A state might have home values and low property tax rates but still have high property tax bills. It could have low home values and high property tax rates but lower property tax bills. When looking at property taxes you should always consider both the property tax rate and the estimated property tax bill.

Why a Tax Bill Is More Important Than a Tax Rate

Lenders check your monthly payment. This payment can increase if property tax bills are high. Even a low tax rate does not matter if the tax bill is high. Higher tax bills mean you pay more into escrow. This can affect whether you get a mortgage.

Why Property Taxes Matter

Property taxes are decided by governments. So two homes, in the state can have very different tax bills. This happens because county, city and school tax rates differ. Special assessments, local bonds and tax exemptions also play a role.

More Expensive Areas with Higher Property Taxes

When buying a home you should be careful about areas with high property taxes. The priciest areas in the ATTOM 2025 report are in the Northeast and Midwest. These include Illinois, New Jersey, Vermont, Connecticut and Ohio. These areas have property taxes but they can be attractive because of good job markets, good schools, higher pay or lots of people wanting to buy homes. You need to think about the value.

How You Can Calculate Property Taxes When Buying a Home

To get an idea of property taxes look at the tax bill, county records, local tax rates and rules about reassessments. The owners tax bill might not be the same, as yours because of reassessments. Before making an offer ask your loan officer, real estate agent or local tax office for an estimate. For homes the first years tax bill might only cover the land so your taxes will probably go up after the home is assessed.

How to Reduce Property Taxes With Exemptions

You can get exemptions or credits for property taxes in states and counties. This means you might be able to save money on your property taxes. There are types of exemptions such as homestead exemptions, senior citizen exemptions, disabled veterans exemptions, military exemptions, agricultural exemptions and primary residence credits. Property taxes and exemptions are a deal. Not everyone can get these exemptions though. It depends on where you live, in which state and county. You should talk to your tax assessor or county treasurer to see if you qualify for any of these exemptions.

States With the Lowest Property Taxes That Are Affordable

When you are thinking about where to live you should consider property taxes. Your budget, income, loan options, lifestyle and long-term goals will help you decide which state is best for you. You want to find a place with property taxes but that is not the only thing that matters. Kiplinger made a list of states with the property taxes and the best affordability. They found that West Virginia, Mississippi, Arkansas, Oklahoma, Alabama and Kentucky have property taxes and are affordable. These states also have low-cost housing compared to other states.

How Do Counties Calculate Property Taxes?

Counties calculate property taxes based on the tax rate and the value of your property. The assessors office sends someone to your home to figure out its value for tax purposes. This person looks at the value of homes in your area and the condition of your home.

You can find out where the lowest property tax rates are, in 2026 and which states cost less. You can also learn how property taxes affect your mortgage payment.

The more your home is worth the more you will pay in property taxes. If you renovate your home your property taxes might go up. If the local economy is strong the value of your home and your property taxes might also go up.

Location, Zoning and Use

Your property’s location and zoning also influence the tax rate. Because taxes help fund school districts, infrastructure, and public services, they depend in part on how much revenue the county needs to pay for these services. When cities and counties require additional funds, they may increase your tax rate.

Even if you know the exact amount that a neighbor with the exact same home plan as yours pays in taxes, yours might be different anyway. Taxes can vary depending on how you plan to use the property.

The homestead exemption allows a portion of your taxes to be discounted, but this exemption is reserved for primary residences only. If you’re purchasing a second property to use as a vacation home or rental, you won’t be eligible for this discount, which changes your taxes and your overall monthly payment.

Highest Property Tax Rates

Here are the Five States with the Highest Property Taxes on Average:

• Illinois (2.22%)
• New Jersey (2.19%)
• Texas (2.11%)
• Vermont (2.11%)
• Connecticut (2.04%)

Property taxes are typically set at the county level. The rates of these five counties show you how high property taxes can actually get.

The Five Counties With the Highest Property Taxes (Relative to Home Value) Were:

• Alcona County, MI (6.61%)
• Bureau County, IL (4.17%)
• Allegany County, NY (3.84%)
• Salem County, NJ (3.79%)
• Sullivan County, NY (3.55%)

When you think about buying a home and want to figure out how much you can afford you should think about property taxes. If you move to a county you might be able to save a lot of money on taxes, which could mean you can buy a nicer house. Today’s Mortgage Rates and Lock Recommendation

Property Taxes and FHA, VA, USDA, and Conventional Loans

All major mortgage programs include property taxes as part of your monthly payment.

FHA Loans and Property Taxes

FHA loans are flexible with credit and debt-to-income requirements, but property taxes are still part of your payment. A higher tax bill will raise your total housing payment and could affect your approval.

VA Loans and Property Taxes

VA loans don’t require monthly mortgage insurance, so eligible veterans and active-duty service members can benefit. However, property taxes and homeowners’ insurance still affect your total payment.

USDA Loans and Property Taxes

Property taxes vary by county, and since USDA loans are for rural and some suburban areas, it’s important to check property taxes early in the process.

Conventional Loans and Property Taxes

Property taxes are also included in monthly payments for conventional loans. Even buyers with good credit need to keep their total payment within limits.

Mistakes When Evaluating Property Taxes

Common mistakes include focusing only on the purchase price and interest rates, or assuming the tax bill won’t change after closing. Another mistake is just comparing tax rates across states. The real question is how much property taxes will add to your monthly payment and if it fits your budget.

Buying in a State With Lower Property Taxes

If you buy a home in a state with property taxes that can be a good thing but you have to remember that taxes are just one thing to think about. You also need to think about things like jobs how homes cost, insurance, how much you make sales taxes, utilities, schools how long it takes to get to work healthcare and whether your home will be a good investment in the long run. It is nice to have a tax rate but what you really want is to find a home that you can afford and feel comfortable in for a long time.

Finding the Lowest Property Tax Rates

You can check the website of the county assessor or treasurer to get some information. Look at homes that’re similar to the one you want and see how much they pay in taxes. Your real estate agent can help you understand how taxes work in that area and your loan officer can explain how property taxes affect your mortgage. Because property taxes are decided by people, the place with the lowest tax rate in your state might not be the same place where you want to buy a home.

Some states have low property tax rates, like Hawaii, Idaho, Wyoming, Arizona, Alabama, Utah, Delaware, West Virginia, Tennessee and Nevada.

It is worth noting that just because a state has a property tax rate it does not mean you will pay less in taxes. You should always look at the price of the home, property taxes, insurance, loan terms and how much you will pay in total. Buying a home, in a state with property taxes can be helpful but you need to think about your whole financial situation and how property taxes will affect it.

Before Buying, Consult a Mortgage Specialist

At Gustan Cho Associates, we can help you compare mortgage payments in different states and counties. This way, you’ll see how property tax rates affect your loan approval and home-buying budget.

Lowest Property Tax Rates

The States with the Lowest Property Taxes on Average are These Five:

• Hawaii (0.36%)
• Alabama (0.48%)
• Colorado (0.52%)
• Utah (0.56%)
• Nevada (0.58%)

And the Five Cheapest Counties for Property Taxes are These:

• Daphne, AL (0.37)
• Honolulu, HI (0.35%)
• Montgomery, AL (0.38%)
• Tuscaloosa, AL (0.39%)
• Colorado Springs, CO (0.41%)

States with very low property taxes tend to make up for it with fewer services (or bad schools), higher personal income tax, or a higher sales tax. If taxes are a priority for you, make sure that you calculate the impact of all tax rates you’ll pay where you live.

Frequently Asked Questions About States with the Lowest Property Tax Rates