Note: Effective property tax rates change with home values and local millages. Data approximate as of early 2026 from public sources. Informational only — not tax advice.
States with the Lowest Property Taxes 2026
Property tax is one of the most overlooked variables in housing cost. The effective rate ranges from 0.27% in Hawaii to 2.21% in New Jersey — an 8x difference. On a $400,000 home, that's a $7,750/year gap. This guide ranks all 50 states and breaks down the dollar impact by home price.
Quick Summary
Lowest: Hawaii (0.27%), Alabama (0.39%), Colorado (0.49%), Nevada (0.55%), Louisiana (0.55%), DC (0.55%), Wyoming (0.55%). Highest: New Jersey (2.21%), Illinois (2.05%), New Hampshire (1.93%), Vermont (1.83%), Connecticut (1.79%), Texas (1.68%). The trade-off: many low property tax states are coastal (Hawaii) or have lower home values (Alabama, Louisiana). The best total picks combine low property tax with no income tax: Wyoming, Tennessee, Nevada, Florida.
Lowest Rate
Hawaii 0.27%
On home value
Highest Rate
NJ 2.21%
Highest in U.S.
National Median
~1.02%
50-state median
$400K Home Range
$1,080–$8,840
Annual property tax
Compare Total Cost in Any State
Property tax is one piece of the puzzle. Compare full cost of living and take-home pay in any state.
Top 10 Lowest Property Tax States
| Rank | State | Effective Rate | Tax on $400K Home | Notes |
|---|---|---|---|---|
| 1 | Hawaii | 0.27% | $1,080 | Low rate but high home values |
| 2 | Alabama | 0.39% | $1,560 | Strong total tax-friendliness |
| 3 | Colorado | 0.49% | $1,960 | Moderate income tax (4.4%) |
| 4 | Louisiana | 0.55% | $2,200 | Strong homestead exemption |
| 5 | Nevada | 0.55% | $2,200 | Combined with no income tax |
| 6 | DC | 0.55% | $2,200 | But high income tax |
| 7 | Wyoming | 0.55% | $2,200 | No income tax + low property |
| 8 | Utah | 0.58% | $2,320 | Flat 4.65% income tax |
| 9 | South Carolina | 0.56% | $2,240 | Strong homestead deduction |
| 10 | West Virginia | 0.59% | $2,360 | Among lowest costs |
Top 10 Highest Property Tax States
| Rank | State | Effective Rate | Tax on $400K Home | Notes |
|---|---|---|---|---|
| 1 | New Jersey | 2.21% | $8,840 | Highest in U.S. |
| 2 | Illinois | 2.05% | $8,200 | Local cook county high |
| 3 | New Hampshire | 1.93% | $7,720 | No income tax, high property |
| 4 | Vermont | 1.83% | $7,320 | High overall tax burden |
| 5 | Connecticut | 1.79% | $7,160 | Plus high state income tax |
| 6 | Texas | 1.68% | $6,720 | No income tax offset |
| 7 | New York | 1.64% | $6,560 | Plus very high income tax |
| 8 | Wisconsin | 1.63% | $6,520 | Mid progressive income tax |
| 9 | Nebraska | 1.61% | $6,440 | Plus moderate income tax |
| 10 | Pennsylvania | 1.49% | $5,960 | Low flat income tax |
Effective vs Nominal Rate
Effective rate is the actual percentage of your home's market value you pay in property tax annually. Nominal rate (or millage) is the local government's stated rate, which applies to the assessed value — often a fraction of market value. The effective rate captures the real out-of-pocket cost regardless of how the local jurisdiction defines its math, which makes it the right number for state-to-state comparisons.
Total Tax Burden: The Real Picture
Low property tax alone does not mean low total tax. Some no-income-tax states (TX, NH) compensate with high property tax. The best total tax burden picks combine reasonable property tax with low income and sales taxes:
| State | Property Tax | Income Tax | Sales Tax | Total Picture |
|---|---|---|---|---|
| Wyoming | 0.55% | 0% | 5.5% combined | Lowest total tax burden in U.S. |
| Tennessee | 0.67% | 0% | 9.55% combined | High sales tax offsets some |
| Nevada | 0.55% | 0% | 8.38% combined | Strong all-around |
| Florida | 0.86% | 0% | 7.02% combined | Insurance offsets some |
| Texas | 1.68% | 0% | 8.20% combined | High property tax tradeoff |
For deeper analysis, see our states with the lowest total taxes ranking and no income tax states guide.
See the Full Tax Impact
Run the full take-home pay and cost comparison for any state.
Frequently Asked Questions
Which state has the lowest property tax?
Hawaii has the lowest effective property tax rate at approximately 0.27%, though Hawaii's high home prices mean total dollar amounts can still be significant. Other low-rate states: Alabama (0.39%), Colorado (0.49%), Nevada (0.55%), Louisiana (0.55%).
Which states have the highest property taxes?
New Jersey leads at ~2.21%, followed by Illinois (2.05%), New Hampshire (1.93%), Vermont (1.83%), Connecticut (1.79%) and Texas (1.68%). On a $400,000 home, the gap between Hawaii and New Jersey is roughly $7,750/year.
Are no income tax states good for property tax?
Mixed. Some combine no income tax with low property tax (Wyoming, Tennessee, Nevada, Florida). Others compensate with high property tax (Texas, New Hampshire). The best total picks combine both low rates: Wyoming, Tennessee, Nevada, Florida.
How does property tax affect monthly housing costs?
Property tax is typically escrowed into your mortgage payment, directly affecting your monthly housing cost. On a $400,000 home, the difference between NJ (2.21%) and Hawaii (0.27%) is roughly $645/month. Over a 30-year mortgage, that's about $232,000 in additional cost.
Can property tax rates change?
Yes. Effective rates change as home values shift and local millages adjust. Some states cap annual increases (California's Prop 13 limits to 2%, Florida's Save Our Homes to 3%). Most states reassess every 1–4 years, so a hot market can drive rates higher.
⚠️ Important: We do NOT collect or store any data you enter. All calculations happen 100% in your browser. Tax calculations use 2026 IRS tax tables (IRS Publication 15-T) and current state tax rates. Cost of living estimates are based on 2026 average market data. This is a free educational tool to help you understand your finances—it is NOT a financial service. Results are for illustrative purposes only and do not constitute professional tax, financial, or legal advice. If you notice any discrepancies, please contact us so we can improve. Consult a qualified CPA or financial advisor for personalized guidance.
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