Hawaii homeowners pay just 0.27% of their home's value in property tax every year — here's the full 2026 ranking of the 10 states with the lowest property tax rates.

Updated: August 2026 | Source: U.S. Census Bureau 2024 ACS, via SmartAsset 2026 analysis

The 10 States With the Lowest Property Taxes (2026)

Property tax rates vary more than almost any other tax type in the U.S. Here's where homeowners pay the least, as a share of their home's value.

A low rate doesn't always mean a low bill. Hawaii has the lowest rate in the country, but also the highest median home value — so the real dollar amount you pay depends on both numbers together.

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0.27%

Hawaii — lowest rate

$881

Lowest median bill: West Virginia

0.89%

U.S. average rate

10

States under 0.5% rate

The catch most people miss: West Virginia isn't on this list by rate (0.52%), but has the lowest median dollar bill in the country — $881/year — because home values there are so low. A low rate and a low bill aren't always the same state.

Lowest Property Tax States, Ranked #1 to #10

1

Hawaii — 0.27%

The lowest effective property tax rate in the country, driven in part by the highest median home value in the U.S. ($875,900). The median bill still comes to $2,385 a year.

Median Home $875,900Median Tax $2,385/yr

2

Alabama — 0.38%

A low rate and a below-average median home value ($233,300) combine for one of the smallest tax bills in the country.

Median Home $233,300Median Tax $890/yr

T-3

Idaho — 0.43%

Tied for third-lowest. A higher median home value ($446,400) than most states on this list still keeps the annual bill moderate.

Median Home $446,400Median Tax $1,912/yr

T-3

Arizona — 0.43%

Tied with Idaho. Despite a home value more than $65,000 above the national median, Arizona homeowners pay nearly $1,400 less than the national median bill.

Median Home $426,000Median Tax $1,828/yr

T-5

South Carolina — 0.45%

Tied for fifth-lowest. An affordable median home value ($299,500) keeps the annual bill nearly $2,000 below the national median.

Median Home $299,500Median Tax $1,337/yr

T-5

Tennessee — 0.45%

Tied with South Carolina, and also one of the nine states with no personal income tax — a strong combination for overall tax burden.

Median Home $332,600Median Tax $1,488/yr

T-7

Nevada — 0.47%

Tied for seventh-lowest. A higher median home value ($455,500) still produces a manageable $2,143/year bill.

Median Home $455,500Median Tax $2,143/yr

T-7

Delaware — 0.47%

Tied with Nevada. Delaware homeowners pay just $1,750/year on a median home value close to the national average.

Median Home $371,600Median Tax $1,750/yr

T-9

Utah — 0.49%

Tied for ninth-lowest. Despite the seventh-highest median home value in the country ($545,200), the rate keeps the bill reasonable.

Median Home $545,200Median Tax $2,648/yr

T-9

Colorado — 0.49%

Tied with Utah. Colorado's median home value ($574,600) is the sixth-highest in the country, but the low rate keeps the tax bill in check.

Median Home $574,600Median Tax $2,828/yr

Frequently Asked Questions

Which state has the lowest property taxes in 2026?

Hawaii has the lowest effective property tax rate at 0.27%, though its high median home value means the actual dollar amount ($2,385/year) is still moderate.

Which state has the lowest property tax bill in dollars?

West Virginia has the lowest median property tax bill in the country at $881/year — even though its rate (0.52%) doesn't rank in the top 10 lowest. Low home values drive the low bill.

Does a low property tax rate always mean a low bill?

No. A low rate on an expensive home (like Hawaii or Colorado) can still produce a higher bill than a moderate rate on a cheap home (like West Virginia).

StatewiseFinance's Take: If you're a teacher, firefighter, or public employee using a state or local down payment assistance program, don't just compare purchase price limits — factor in the property tax rate too. A cheaper home in a high-rate state can end up costing more per year than a pricier home in a low-rate state like Alabama or Tennessee.

Bottom Line: Property tax rate and dollar amount are two different things. Before assuming a state is "cheap" because of a low rate, check both the rate and the median home value — the combination determines what you'll actually pay every year.

Highest Property Tax StatesSee the other end of the ranking Lowest Tax Burden StatesSee the full combined tax picture by state State RankingsMore state-by-state comparisons Loan CalculatorSee how property tax affects your budget

Disclaimer: This post is for informational purposes only and does not constitute financial or tax advice. Figures are based on U.S. Census Bureau 2024 American Community Survey data via SmartAsset's 2026 analysis and are subject to change. Consult a tax professional or your local assessor's office for guidance specific to your property. Data verified against SmartAsset's published 2026 methodology — see our Editorial Standards for how we research and verify every guide.