These States Have the Lowest Property Taxes

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The classic American dream is owning a home, but property tax can be an unwelcome guest at the table. Each year, homeowners have to decide how to balance their budgets against taxes that can fluctuate widely from place to place. For most people however, it isn’t only a financial perk to find a state with lower property taxes, it can even influence decisions to relocate or even retire. With real estate markets heating up in some areas and cooling in others, knowing the difference in property tax can be a major help when planning for your future.

Although some states are known for their gorgeous vistas or big cities, other states quietly win over residents with low property tax loads. Not only are these states good for your wallet, they are often places where people can find a better quality of life and more opportunities to put their hard earned dollars to work.

Hawaii

While Hawaii is known for beaches and sunsets, it’s also a surprising haven for property owners. According to SmartAsset, Hawaii has the lowest property tax rate in the country of just 0.29%. This rate helps to compensate for a higher cost of living that island life can be. The tax savings might feel like a tropical breeze in your budget, even if you aren’t surfing every morning.

Alabama

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Alabama might be your spot if you’re drawn to Southern charm. The average property tax rate in this state is 0.39%. Low taxes and affordable housing have made Alabama an increasing draw for retirees who want their dollars to go further.

Colorado

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Colorado is known for its breathtaking mountains and active lifestyle, and homeowners earn some property tax breaks, too. The state’s rate is a 0.51% average, which can be a huge win for those who love the outdoors but want to stay on the ground with their finances. Part of the reason for the low rate is because the state imposes an assessment cap that limits how much property taxes can jump, said a study by the Lincoln Institute of Land Policy.

Wyoming

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Low property taxes and wide open spaces? Wyoming offers both. With an average rate of 0.57%, the state is a mecca for ranchers, nature lovers, those who appreciate a low tax lifestyle and anyone who wants to live in a state with little government and few hassles. It’s no wonder, Wyoming is linked with financial freedom as well as its rugged beauty.

South Carolina

South Carolina is a combination of Southern hospitality and financial friendliness, with an average property tax rate of 0.57%. Retirees are flocking to this state, which features scenic beaches and mild winters to make the transition for new residents who simply want to live on a budget.

West Virginia

There’s more to West Virginia than rolling hills and country roads. The property tax rate here is one of the lowest in the country, averaging just 0.58%, and it’s also one of the more affordable states in the country. This is a hidden gem for homeowners thanks to lower housing costs and taxes.

Arkansas

While Arkansas is known for diamonds and hot springs, it’s also a place where homeowners pay one of the lowest property tax rates in the nation – an average of 0.61%. Your wallet will thank you no matter if you’re settling into a suburban home or rural retreat.

Louisiana

Louisiana keeps things spicy in more ways than one, with a property tax rate of 0.55%. People who like culture, and low costs, come here because the property taxes are affordable. You could argue that Louisiana’s tax structure is built to make homeownership available without overextending the budget.

Delaware

Though it’s small and often underrated, Delaware’s property taxes are little. With an average of 0.56% it is an attractive option for people looking to live close to the coast but do not want the high cost associated with it. One of the main draws for residents is the state’s affordability.

New Mexico

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New Mexico has desert landscapes and reasonable property taxes for those who want them. Homeowners in this state can own property at an average rate of 0.65%, without the steep tax bills and in a unique cultural tapestry.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.