9 States With The Lowest Property Tax Rates

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On average, US households spend $2,471 a year on property taxes — though in some states it’s less than half.

This is according to a recent ranking of WalletHub, who studied real estate and vehicle taxes in each state and the District of Columbia. To get the effective property tax rate in each state, the site divided the typical property tax payment by the typical house price.

Here are the states with the lowest effective property tax rates, according to WalletHub.

10.Wyoming

People are kayaking on a lake with a mountain in the background.
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Effective state property tax rate: 0.61%

The typical property tax payment on a median priced home in Wyoming is $1,337. However, a recent law allows eligible homeowners to receive a refund of up to half of their property tax bill.

9. Nevada

Spring Valley, Nevada
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Effective state property tax rate: 0.60%

In Nevada, the typical household spends $1,614 on property taxes. A separate Tax Foundation analysis ranked Nevada even better for property taxes: No. 5 in the nation.

8. West Virginia

West Virginia
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Effective state property tax rate: 0.58%

The median property tax expense in the Mountain State is $698. Sound too good to pass up? Good news: West Virginia is one of “10 places that will pay you to move there in 2022”.

6. Delaware (tie)

Wilmington, Delaware
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Effective state property tax rate: 0.57%

The typical property tax payment in Delaware is $1,431. However, the state has a property tax credit for seniors that averages $340, according to Delaware Business Now, and state lawmakers are currently considering increasing the maximum amount of the credit.

6. South Carolina (tie)

Spartanburg, South Carolina
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Effective state property tax rate: 0.57%

A typical South Carolina homeowner pays $924 in property taxes each year on a median-priced home. The state is also home to one of the “10 Most Undervalued Housing Markets in America,” but don’t tell anyone.

5.Washington, D.C.

washington d.c.
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Effective state property tax rate: 0.56%

The median property tax expenditure in the nation’s capital is $3,378. In 2021, the metro area was considered one of the toughest places to buy a home in the United States

4. Louisiana

New Orleans Louisiana
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Effective state property tax rate: 0.55%

The typical property tax payment on a median priced home in Louisiana is $890. Residents will have the opportunity to vote on two state constitutional amendments in November 2022 that could improve property tax exemptions for people with disabilities and also specifically for disabled veterans.

3. Colorado

Denver, Colorado
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Effective state property tax rate: 0.51%

The median property tax expense in the Centennial State is $1,756. A recently passed law will slow any property tax increases and save homeowners $700 million over two years, according to a Denver-based NBC affiliate.

2.Alabama

Tuscaloosa Alabama
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Effective state property tax rate: 0.41%

A typical Alabama homeowner with a median-priced home pays $587 in property taxes each year — the lowest in the nation. The state is also home to two of the most undervalued housing markets in the United States.

1. Hawaii

Lanikai Beach in Kailua, Hawaii
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Effective state property tax rate: 0.28%

In Hawaii, the typical household spends $1,715 in property taxes for a median value home. Having the lowest effective property taxes in the country may help explain why more than a quarter of its owners have lived in their current home for 30 years or more.

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Penny D. Jackson