Browse
Log in / Register
Share
Homeowners in the United States paid a national median of $3,500 in property taxes in 2024, a figure that is rising with home values. However, property tax burdens vary dramatically by state, with some offering significantly lower annual costs. Based on 2024 data, the ten states with the lowest median property tax bills are primarily located in the South and are characterized by lower median home prices. While lower taxes can mean more money in your pocket each year, it's crucial to understand the balance between tax savings and the funding of local public services.
Property tax is a levy on real estate imposed by local governments, typically based on the property's assessed value. The states with the lowest median property tax amounts in dollar terms often have a combination of lower home values and/or lower tax rates. The following data, based on recent analysis, shows the ten states where homeowners pay the least.
| State | Median Property Tax Amount | Median Home List Price |
|---|---|---|
| West Virginia | $728 | $261,500 |
| Alabama | $804 | $329,950 |
| Arkansas | $871 | $304,950 |
| New Mexico | $1,034 | $296,500 |
| Arizona | $1,328 | $368,500 |
| Idaho | $1,333 | $429,900 |
| Mississippi | $1,415 | $278,500 |
| South Carolina | $1,481 | $299,250 |
| Wyoming | $1,551 | $309,900 |
| Tennessee | $1,670 | $299,900 |
As senior economic research analyst Hannah Jones explains, "Because property tax burdens are a function of value X rate, a lower base value means even a moderate rate produces a lower absolute tax bill." This is why all ten states listed have median home prices below the national median of $425,000.
While a lower tax bill is appealing, these taxes directly fund essential municipal services. Areas with lower property taxes may have fewer services, which can impact quality of life. As noted by real estate expert Bruce Ailion, these services include "schools, police, firefighters, courts, libraries, parks, and road maintenance." He highlights a real-world example: after a hurricane, high-tax counties cleared roads in days, while low-tax counties took weeks. Lower taxes can sometimes correlate with reduced public service capacity. However, in more rural areas with lower population density, the demand for extensive public infrastructure may be less, making lower tax rates sustainable without a significant drop in service quality.
Property taxes remain a primary revenue source for local governments, and no state has eliminated them. However, rising bills have spurred legislative discussions. For example, Florida has considered House Bill 201, which aimed to eliminate non-school property taxes for homestead properties—a term for a primary residence owned and occupied by the homeowner. While such proposals highlight the growing push for tax relief, states would need to replace this critical funding through other means, such as sales or income taxes. The general consensus is that property taxes are an integral part of local government funding and are unlikely to disappear entirely.
Before considering a move based solely on property taxes, weigh the annual savings against the potential trade-offs in community services. Evaluate what services are important to you and research the specific county and municipality, as rates and services can vary even within these low-tax states.
