What State Has the Lowest Property Taxes?

States with the Lowest Property Tax Rates:

• The top five states with the lowest property tax rates are Louisiana, Hawaii, Alabama, Delaware, and the District of Columbia. Their property tax rates range from 0.18% to 0.46%.
• Hawaii has the second-lowest property tax rate in the US at just 0.26%.
• Alabama has the third-lowest property tax rate in the US at 0.33%.
• Delaware has the fourth-lowest property tax rate in the US at 0.43%.

States Ideal for Tax Savings:

• Wyoming and Alaska have comparatively low property tax rates of 1.43% and 1.34%.
• South Dakota likewise has a low 1.34% property tax rate and no income tax.
• Wyoming is the most tax-friendly for the middle class.

States with No Income Tax and Lowest Property Taxes:

• Alaska has no state income or sales tax.
• Hawaii offers a $100,000 homeowner’s exemption for primary residences.
• Alabama offers up to a $5,000 homestead exemption for seniors.

States with Low Effective Property Tax Rates:

• Hawaii has the lowest effective property tax rate nationally at 0.28%.
• South Carolina and Delaware tie for the next lowest rates at 0.56%.
• Colorado is known for low tax rates with an effective property tax rate of 0.59%.

Other Information:

• The property tax component accounts for 14.4 percent of each state’s overall Index score.
• Property taxes matter to businesses for several reasons.

About Tax Deduction:

• Hawaii has the lowest property tax rate at $606, almost 9 times lower than the highest rate seen in New Jersey.

Moving to States with No Income Tax:

• As of 2023, nine states don’t impose an income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.