Residents of the United States are aware that taxes are an unavoidable part of their lives. Americans are accustomed to paying a significant amount each year, from federal income tax to state income tax and property tax.
Property tax in the United States depends on the state. Some states have higher property taxes; in others, the property tax rates are below 1.00%, as reported in Marca.
Property tax is an ad valorem tax on real estate that the property owner pays to the jurisdiction where the property is located. The money collected is used for government projects such as funding law enforcement, education, public transportation, parks and recreation, and water and sewer improvements.
Some states in America offer property tax rates below 1.00%. (Photo: H&R Block)
See: Low Property Taxes: Advantage and Disadvantages
States with Low Property Tax
The following lists are the states with the low property tax rates, ranked from lowest to highest:
| State | Property Tax Rate/Median Annual Tax |
| 1. Hawaii | $281 – $1,529 |
| 2. Alabama | $406 – $587 |
| 3. Colorado | $505 – $1,575 |
| 4. Louisiana | $551 – $795 |
| 5. South Carolina | $566 – $851 |
| 6. Delaware | $568 – $1,431 |
| 7. Nevada | $572 – $1,489 |
| 8. Utah | $575 – $1,576 |
| 9. District of Columbia | $575 – NA |
| 10. West Virginia | $584 – $653 |
| 11. Wyoming | $605 – $1,256 |
| 12. Arkansas | $620 – $798 |
| 13. Arizona | $644 -$1,499 |
| 14. Idaho | $659 – $1,322 |
| 15. Tennessee | $685 – $1,120 |
| 16. California | $742 – $3,818 |
| 17. Mississippi | $795 – $879 |
| 18. New Mexico | $796 – $1,272 |
| 19. Virginia | $815 – $2,049 |
| 20. North Carolina | $818 – $1,378 |
| 21. Montana | $827 – $1,756 |
| 22. Indiana | $833 – $1,130 |
| 23. Kentucky | $851 – $1,120 |
Moving or buying a property in a state with lower property taxes might be tempting. However, it is important to consider the overall cost of living. Some states with low property tax may have higher costs elsewhere to make up for the costs. For instance, Hawaii ranked first with the lowest property tax rate at 0.27%. However, Hawaiian homeowners are still expected to pay around $1,697 in property tax rates because of the state’s high median cost.
Find Out: South Dakota Legislators Easily Passed the Property Tax Cut – Residents to Receive $425 Checks
