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

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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

Virginia ranks 20th in the country for lowest real estate tax rates.

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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.

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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

Montana’s homes have a median value of $375,800.

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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

Mississippi taxes homeowners 0.72% in property taxes each year.

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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

The owners of a home priced at New Mexico’s median home value pay an annual $1,731 in property taxes.

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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

California homes have a median value of $734,700 — the second highest in the nation.

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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

North Carolina homeowners pay a property tax rate of 0.66% each year.

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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

The median home in Wyoming is priced at $309,700.

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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

Owners of a home priced at Louisiana’s median value pay an annual $1,180 in property taxes.

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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

Arkansas has a property tax rate of 0.55%.

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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

West Virginia homes are the lowest priced in the country, with a median home value of $162,600.

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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

Someone owning a home priced at Utah’s median home value would pay an annual $2,525 in property taxes.

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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

Delaware has an effective property tax rate of 0.50%.

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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

A median Tennessee home is valued at $286,700.

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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

The owner of a home priced at Idaho’s median real estate value would pay an annual $2,038 in property taxes.

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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

Arizona ties with Colorado and South Carolina for fourth place in real estate tax rates at 0.48%.

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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

A median home in Colorado is valued at $539,400.

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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

The owner of a home priced at South Carolina’s median home value pays an annual $1,251 in property taxes.

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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

Nevada ranks third-lowest in real estate tax rates.

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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

Alabama, with a median home priced at $209,900, has the second-lowest property taxes in the US.

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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

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.

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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