What States Have No Property Tax? (Spoiler: None)
Short answer: no US state has zero property tax. All 50 states (plus DC) levy some form of property tax. However, the effective property tax rate varies dramatically — from 0.28% in Hawaii to 2.26% in New Jersey. Some homeowners pay 8 times more in property tax than others on identical homes simply due to where they live.
The closest you get to “no property tax” is Alaska, where individual municipalities collect property tax but there’s no state-level property tax. The lowest effective rates are in Hawaii, Alabama, and Colorado.
The 10 lowest property tax states (2026)
| Rank | State | Effective rate | Median annual tax (median home) |
|---|---|---|---|
| 1 | Hawaii | 0.28% | $2,340 |
| 2 | Alabama | 0.39% | $658 |
| 3 | Colorado | 0.51% | $2,470 |
| 4 | Nevada | 0.53% | $2,062 |
| 5 | Louisiana | 0.55% | $988 |
| 6 | South Carolina | 0.55% | $1,372 |
| 7 | Delaware | 0.55% | $1,756 |
| 8 | Wyoming | 0.55% | $1,580 |
| 9 | District of Columbia | 0.56% | $3,830 |
| 10 | West Virginia | 0.57% | $768 |
Effective rate = median annual property tax divided by median home value (US Census Bureau, 2024 ACS).
The 10 highest property tax states (2026)
| Rank | State | Effective rate | Median annual tax (median home) |
|---|---|---|---|
| 1 | New Jersey | 2.26% | $9,076 |
| 2 | Illinois | 1.97% | $4,942 |
| 3 | Connecticut | 1.96% | $6,476 |
| 4 | New Hampshire | 1.86% | $6,372 |
| 5 | Vermont | 1.83% | $5,230 |
| 6 | Texas | 1.60% | $4,300 |
| 7 | Wisconsin | 1.63% | $3,796 |
| 8 | Nebraska | 1.57% | $3,340 |
| 9 | New York | 1.46% | $6,280 |
| 10 | Pennsylvania | 1.43% | $3,440 |
Why “no property tax” doesn’t really exist
Property taxes fund local government — schools, fire, police, roads, libraries, parks. Even states without an income tax (Texas, Florida, Tennessee) need to fund these services somehow. They typically do so via:
- Higher property tax (Texas at 1.60%, Tennessee at 0.56%)
- Higher sales tax (Tennessee combined sales tax averages 9.55%)
- Tourism taxes (Florida hotel/rental taxes)
- Severance taxes on natural resources (Alaska oil)
There’s no free lunch — if a state isn’t taxing income, it’s taxing something else, and property tax is usually the biggest line item for funding local schools.
Alaska: the closest to “no property tax”
Alaska has no statewide property tax. However:
- Municipalities (boroughs and cities) collect property tax independently
- Anchorage charges roughly 1.05% effective rate — moderate
- Some rural areas with no organized borough charge zero property tax — but they have minimal local services
- Alaska also pays residents an annual Permanent Fund Dividend ($1,400-$3,200 in recent years) from oil revenue, which can offset property tax burden
So if you live in a rural unincorporated Alaska village, you might pay close to zero property tax — but you’d also have no plowed roads, no public schools, and limited emergency services.
States with property tax exemptions that approximate “no tax”
While no state eliminates property tax entirely, many offer homestead exemptions that reduce taxable value substantially:
Florida’s Save Our Homes Cap
Florida combines a homestead exemption (first $50,000 of assessed value) with a 3% annual cap on assessment increases. Long-term Florida homeowners often pay property tax on far less than current market value.
Texas’s homestead exemption
Texas allows a $100,000 homestead exemption (school district portion). Combined with the elderly/disabled additional exemption, qualifying seniors can owe little to nothing on the school portion of their tax.
Mississippi’s senior freeze
Mississippi homeowners 65+ qualify for a homestead exemption that completely eliminates the school portion of property tax on their primary residence.
South Dakota’s senior assessment freeze
South Dakota seniors making under approximately $46,000 (2024 limit) can apply to have their property assessment FROZEN at the year they qualified, effectively preventing future tax increases.
States with high property tax but no income tax
If you want a state with no income tax, you’ll pay it back in property tax. Two prominent examples:
Texas
- 0% state income tax
- 1.60% effective property tax (6th-highest in US)
- Net effect: high earners save substantially. Middle-income families with high-value homes often pay more total tax than in moderate states.
New Hampshire
- 0% state income tax (on wages)
- 1.86% effective property tax (4th-highest)
- Plus 5% interest/dividends tax (phasing out by 2027)
States with low property tax AND low income tax
A few “tax-friendly” states have both:
| State | Income tax | Property tax |
|---|---|---|
| Wyoming | 0% | 0.55% (8th lowest) |
| Nevada | 0% | 0.53% (4th lowest) |
| Tennessee | 0% | 0.56% (low) |
| Florida | 0% | 0.82% (moderate) |
| South Dakota | 0% | 1.15% (mid-range) |
Wyoming and Nevada genuinely offer one of the lower combined state-tax burdens in the US — but they make up for it in sales tax, severance taxes, or specific industry levies.
How effective property tax is calculated
The effective property tax rate is:
Effective rate = (Annual property tax paid) / (Market value of home)
This is different from the statutory rate (mill rate × assessment ratio). The effective rate captures what you actually pay as a percentage of your home’s market value — which is the meaningful comparison for shoppers.
For example, Texas has a high statutory mill rate but assesses at 100% of market value, producing the high 1.60% effective rate. California has a higher mill rate but assesses at 1975 purchase price plus 2% annual cap (Proposition 13), producing a lower 0.71% effective rate — even though San Francisco statutory rates exceed 1.2%.
Frequently asked questions
Q: What’s the cheapest state for property tax retirement? A: For retirees: South Dakota offers a senior assessment freeze. Hawaii has the lowest effective rate but expensive real estate. Mississippi and Alabama have very low property tax overall AND senior exemptions that can reduce it to near zero.
Q: Do veterans pay property tax? A: Many states offer veterans property tax exemptions, especially for disabled veterans. Texas exempts 100% disabled vets entirely. California offers $4,000-$254,000 exemption based on disability. Check your state’s veteran property tax exemption rules.
Q: What’s the average property tax in the US? A: The US average effective property tax rate is about 0.99%. On the median US home value of $300,000, that’s roughly $2,970 per year. But the median masks huge variance — half of US homeowners pay less, half pay more.
Q: Is property tax deductible? A: Yes, but only if you itemize, and the State and Local Tax (SALT) deduction is capped at $10,000 annually under the TCJA. This cap affects high-property-tax states (NJ, IL, NY) the most.
Q: Are property taxes higher in cities or rural areas? A: Usually higher in suburban areas with well-funded school districts. Rural areas often have lower property tax but fewer services. Urban core areas can have lower rates than suburbs because commercial properties carry more of the load.
Related calculators
- Property Tax Calculator — Estimate your annual property tax
- State Property Tax Calculator — All 51 state-specific calculators
- Cost of Living Calculator — Compare 50 US cities
- Mortgage Calculator — Full PITI estimate with taxes
The “no property tax” question really becomes “where can I minimize total tax burden?” Run the numbers for your specific situation — your income, home value, and lifestyle determine which state actually saves you the most.
Related Calculators
Editorial standards: Every article cites primary sources and is reviewed against current tax-law data before publication. See our full methodology & accuracy for sourcing and review process.
Not financial advice: This article is for general informational purposes only. Calcinum does not provide regulated tax, legal, or investment advice. Consult a qualified professional for decisions specific to your situation.