States with Lowest Property Taxes
States ranked by effective property tax rates. Lower taxes mean better cash flow.
Hawaii
Alabama
Colorado
Louisiana
District of Columbia
Delaware
South Carolina
West Virginia
Nevada
Wyoming
Arkansas
Utah
Arizona
Idaho
Tennessee
California
New Mexico
Mississippi
Virginia
Montana
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📊 How We Ranked These
Rankings are based on effective property tax rates (annual tax / home value). States with rates under 0.5% score highest. We also consider assessment practices and appeal success rates.
Frequently Asked Questions
Which state has the lowest property taxes?
Hawaii has the lowest effective rate at around 0.28%, followed by Alabama at 0.41%. However, low tax states often have higher home prices. For investors, the combination of tax rate AND home price matters most.
Do property taxes affect rental investments?
Absolutely. Property taxes are often the largest expense after mortgage payments. A 2% tax rate versus a 0.5% rate on a $200,000 property is a $3,000/year difference - that's $250/month less cash flow.