No U.S. state is completely free of property tax. If you’re looking for states with no property tax, the straight answer is that all 50 states and Washington, D.C. allow counties, cities and school districts to levy on homes and land. What does exist is narrower but still useful: 14 states where the state government itself collects nothing, a handful of exemptions that cut certain owners’ bills to zero, and a huge gap between the cheapest and most expensive places to own a home.
Hawaii has the lowest effective property tax rate in the country at 0.29%, followed by Alabama at 0.37%, according to the Tax Foundation’s 2026 property tax rankings, which are built on 2024 Census Bureau American Community Survey data. New Jersey and Illinois tie for the highest at 1.88%. That’s a spread of more than six to one on the same house.
Is There Any State With No Property Tax at All?
No. Every state either levies a property tax itself or authorizes local governments to levy property taxes, and in practice every state has local levies on real estate. A property tax is an annual tax on the assessed value of residential property, commercial buildings and land (and in some states, vehicles and business equipment), set and collected mostly by local governments to pay for schools, roads, police, fire protection and other services.
The confusion comes from three real things that sound like “no property tax”:
- No state-level levy. Texas, for example, has a constitutional ban: Article VIII, Section 1-e of the Texas Constitution bars any state ad valorem levy. Yet Texas homeowners pay the 7th highest effective rate in the country because school districts, counties and cities do the levying.
- Exemptions that zero out a bill. A 100% disabled veteran in Texas, Florida or Virginia can owe nothing on a homestead. That’s a rule for a specific person, not a whole state.
- Places with no local levy. Alaska comes closest. According to Alaska’s Division of Community and Regional Affairs, only 24 municipalities (15 of 19 boroughs and 9 cities outside boroughs) levy a property tax, so a homeowner in an unincorporated part of the unorganized borough can go without a bill entirely.
Abolition has been tested at the ballot box, too. North Dakota voters rejected Measure 4, which would have banned levies based on assessed value, in November 2024 with about 63% voting no.
The 14 States Where the State Government Collects No Property Tax
Fourteen states collect no property tax at the state level; every dollar of the bill goes to local government. When we pulled the Census Bureau’s Annual Survey of State Government Tax Collections for fiscal 2025 in September 2026, these were the states reporting nothing in that category. The list was identical in fiscal 2024.
| State | Effective rate | Rank (1 = highest) | Median annual bill |
|---|---|---|---|
| Colorado | 0.50% | 44 of 50 | $2,828 |
| Connecticut | 1.54% | 3 of 50 | $6,573 |
| Delaware | 0.54% | 39 of 50 | $1,750 |
| Florida | 0.78% | 27 of 50 | $2,993 |
| Hawaii | 0.29% | 50 of 50 | $2,385 |
| Idaho | 0.495% | 45 of 50 | $1,912 |
| New York | 1.30% | 11 of 50 | $6,542 |
| North Carolina | 0.66% | 33 of 50 | $2,044 |
| Ohio | 1.36% | 8 of 50 | $2,937 |
| Oklahoma | 0.79% | 26 of 50 | $1,672 |
| South Dakota | 1.00% | 18 of 50 | $2,940 |
| Tennessee | 0.52% | 41 of 50 | $1,488 |
| Texas | 1.40% | 7 of 50 | $4,108 |
| Utah | 0.48% | 48 of 50 | $2,648 |
Look at the rank column before you pack. The list includes the lowest-rate state in the country (Hawaii) and some of the highest: Connecticut is 3rd, Texas 7th, Ohio 8th and New York 11th. Whether the state takes a cut tells you almost nothing about your bill. Local budgets, assessment rules and exemptions decide that.
Where states do levy their own property tax, it’s a small slice of their revenue overall. State governments collected $25.5 billion in property tax in fiscal 2025, about 1.7% of all state collections, per the same Census survey. A few states lean on it harder, mostly through statewide school levies: property tax made up 28.7% of Vermont’s state collections, 15.3% in Wyoming, 12.3% in New Hampshire and 12.0% in Washington.
Property Tax Rates by State: All 50 States and D.C. Ranked
The effective property tax rate is the median property tax paid divided by the median home value. It folds the local millage rate, assessment ratios and common exemptions into one number, which is why it’s the fairest way to compare states. The table below combines those rankings (property tax rates on owner-occupied housing) with the Census Bureau’s median real estate taxes paid and median home values from the 2024 American Community Survey. Click any state to run your own numbers in its calculator.
| Rank | State | Effective rate (2024) | Median annual bill | Median home value | State-level levy (FY2025) |
|---|---|---|---|---|---|
| 1 | New Jersey | 1.88% | $9,358 | $496,000 | Yes |
| 2 | Illinois | 1.88% | $5,399 | $280,700 | Yes |
| 3 | Connecticut | 1.54% | $6,573 | $396,900 | None |
| 4 | Vermont | 1.51% | $5,026 | $352,800 | Yes |
| 5 | New Hampshire | 1.50% | $6,707 | $458,800 | Yes |
| 6 | Nebraska | 1.44% | $3,739 | $263,100 | Yes |
| 7 | Texas | 1.40% | $4,108 | $313,200 | None |
| 8 | Ohio | 1.36% | $2,937 | $239,800 | None |
| 9 | Iowa | 1.33% | $2,937 | $227,300 | Yes |
| 10 | Wisconsin | 1.32% | $3,680 | $294,700 | Yes |
| 11 | New York | 1.30% | $6,542 | $449,800 | None |
| 12 | Pennsylvania | 1.26% | $3,214 | $277,600 | Yes |
| 13 | Kansas | 1.21% | $2,983 | $238,700 | Yes |
| 14 | Michigan | 1.19% | $2,988 | $254,200 | Yes |
| 15 | Rhode Island | 1.12% | $4,886 | $455,700 | Yes |
| 16 | Massachusetts | 1.00% | $6,080 | $607,400 | Yes |
| 17 | Minnesota | 1.00% | $3,501 | $344,600 | Yes |
| 18 | South Dakota | 1.00% | $2,940 | $289,600 | None |
| 19 | Maine | 0.98% | $3,103 | $341,900 | Yes |
| 20 | Alaska | 0.94% | $3,976 | $376,500 | Yes |
| 21 | Maryland | 0.92% | $4,144 | $436,300 | Yes |
| 22 | North Dakota | 0.92% | $2,550 | $266,100 | Yes |
| 23 | Missouri | 0.89% | $2,021 | $254,400 | Yes |
| 24 | Oregon | 0.81% | $3,895 | $497,500 | Yes |
| 25 | Georgia | 0.79% | $2,554 | $343,300 | Yes |
| 26 | Oklahoma | 0.79% | $1,672 | $222,100 | None |
| 27 | Florida | 0.78% | $2,993 | $396,900 | None |
| 28 | Virginia | 0.78% | $2,872 | $403,500 | Yes |
| 29 | Indiana | 0.76% | $1,798 | $243,500 | Yes |
| 30 | Washington | 0.75% | $4,729 | $602,200 | Yes |
| 31 | Kentucky | 0.74% | $1,611 | $226,000 | Yes |
| 32 | California | 0.70% | $5,369 | $759,500 | Yes |
| 33 | North Carolina | 0.66% | $2,044 | $333,000 | None |
| 34 | New Mexico | 0.63% | $1,776 | $279,900 | Yes |
| 35 | Montana | 0.61% | $2,939 | $425,400 | Yes |
| n/a | Washington, D.C. | 0.60% | $4,594 | $733,400 | n/a (city-state) |
| 36 | Mississippi | 0.58% | $1,221 | $186,500 | Yes |
| 37 | Arkansas | 0.56% | $1,113 | $215,600 | Yes |
| 38 | Louisiana | 0.55% | $1,187 | $223,200 | Yes |
| 39 | Delaware | 0.54% | $1,750 | $371,600 | None |
| 40 | Wyoming | 0.53% | $1,947 | $339,500 | Yes |
| 41 | Tennessee | 0.52% | $1,488 | $332,600 | None |
| 42 | West Virginia | 0.51% | $881 | $170,800 | Yes |
| 43 | Nevada | 0.50% | $2,143 | $455,500 | Yes |
| 44 | Colorado | 0.50% | $2,828 | $574,600 | None |
| 45 | Idaho | 0.495% | $1,912 | $446,400 | None |
| 46 | South Carolina | 0.49% | $1,337 | $299,500 | Yes |
| 47 | Arizona | 0.48% | $1,828 | $426,000 | Yes |
| 48 | Utah | 0.48% | $2,648 | $545,200 | None |
| 49 | Alabama | 0.37% | $890 | $233,300 | Yes |
| 50 | Hawaii | 0.29% | $2,385 | $875,900 | None |
The national unweighted average across the 50 states works out to about 0.90%. Every 1.00% of effective rate equals $1,000 a year for each $100,000 of home value, so the gap between Hawaii and New Jersey on a $300,000 house is roughly $4,770 a year.
The 10 States With the Lowest Effective Property Tax Rates
- Hawaii: 0.29%. Counties are the only levying authority, and high home values spread the budget thin.
- Alabama: 0.37%. Owner-occupied homes are assessed at just 10% of appraised value.
- Utah: 0.48%. Primary residences are taxed on 55% of market value.
- Arizona: 0.48%.
- South Carolina: 0.49%. Owner-occupied homes are assessed at 4% versus 6% for other property.
- Idaho: 0.495%.
- Colorado: 0.50%.
- Nevada: 0.50%.
- West Virginia: 0.51%.
- Tennessee: 0.52%.
The 5 States With the Highest Property Tax Rates
- New Jersey: 1.88%, with the highest median bill in the country at $9,358.
- Illinois: 1.88%.
- Connecticut: 1.54%.
- Vermont: 1.51%.
- New Hampshire: 1.50%, which carries costs other states cover with income and sales levies.
Lowest Rate vs. Lowest Tax Bill: Why Hawaii Isn’t the Cheapest Place to Own
Hawaii’s rate is the lowest in the nation, but not its tax bill. The median Hawaii homeowner paid $2,385 in 2024 because the median home was worth $875,900, the most expensive in the nation. The smallest median bills were in West Virginia ($881) and Alabama ($890), where homes are cheaper and rates are low.
The mistake we see most often when readers compare states is judging by the rate alone. Run the same house through four states and the picture gets clearer:
| State | Effective rate | Estimated yearly bill on a $350,000 home |
|---|---|---|
| Hawaii | 0.29% | $1,015 |
| Alabama | 0.37% | $1,295 |
| Texas | 1.40% | $4,900 |
| New Jersey | 1.88% | $6,580 |
There’s a second trap. Assessment caps make the median misleading for buyers. California’s Proposition 13 limits the base rate to 1% of assessed value and caps assessment growth at 2% a year, and Florida’s Save Our Homes cap limits homestead assessment increases to 3% or inflation, whichever is lower. Long-time owners in both states pay on values far below market. A buyer gets reassessed at the purchase price, so a new owner’s effective rate is often well above the state median. If you’re shopping, estimate the bill on your purchase price, not the seller’s current bill.
Where Some Homeowners Really Pay Zero Property Tax
A zero bill comes from who you are and how your home is used, not from which state you live in. A homestead exemption is a reduction in the taxable value of a primary residence, and in some states it’s big enough, or targeted enough, to erase the bill completely.
100% Disabled Veterans
Several states fully exempt the homestead of a veteran rated 100% disabled by the U.S. Department of Veterans Affairs:
- Texas: Tax Code Section 11.131 exempts the total appraised value of the residence homestead of a veteran who receives 100% disability compensation and is rated 100% disabled or individually unemployable, per the Texas Comptroller. A qualifying surviving spouse keeps it.
- Florida: Sections 196.081 and 196.091 of the Florida Statutes give honorably discharged veterans with a service-connected total and permanent disability a total exemption on their homestead, according to the Florida Department of Revenue.
- Virginia: The real estate of a veteran with a 100% service-connected, permanent and total disability rating is exempt, covering the home and up to one acre of land.
- Alaska: A partial break rather than a full one. Every municipality must exempt the first $150,000 of assessed value for veterans with a service-connected disability of 50% or more.
The rules differ on ratings, individual unemployability and surviving spouses, so check our disabled veteran property tax exemption guide by state before you assume you qualify.
Seniors and Low-Income Owners
Alabama is the clearest case of a full senior exemption. Per the Alabama Department of Revenue, homeowners 65 or older with net taxable income of $12,000 or less on their combined federal return are exempt from all ad valorem taxes on their homestead, and permanently disabled owners get the same full exemption with no income limit. Other seniors in Alabama still skip the entire state portion of the bill.
Elsewhere the relief is partial. Alaska’s mandatory $150,000 exemption applies to owners 65 and older. Texas homeowners 65 or older get a $200,000 school district exemption ($140,000 general plus $60,000 for seniors) along with a school levy ceiling that freezes that portion of the bill. Many states also run a circuit breaker, a credit that limits the bill to a share of household income. Our senior property tax exemptions by state guide covers the age, income and filing rules.
Large Homestead Exemptions for Everyone
- Louisiana: The homestead exemption covers $7,500 of assessed value, which equals $75,000 of market value because homes are assessed at 10%. A modest house can owe little beyond city charges.
- Honolulu, Hawaii: The home exemption is $120,000 of assessed value, or $160,000 for owners 65 and older, for the July 2026 to June 2027 year. The application deadline is September 30 preceding the year it applies.
- Texas: Voters raised the general school district homestead exemption from $100,000 to $140,000 starting in 2025.
- Florida: The standard exemption is up to $50,000. The first $25,000 applies to all levies, and the second $25,000 applies to value between $50,000 and $75,000 for non-school levies only.
No Income Tax Does Not Mean No Property Tax
States with no income tax still charge homeowners, and two of them rank among the 10 highest. Nine states have no broad individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire joined the group when it repealed its levy on interest and dividends for periods beginning January 1, 2025. Washington does collect a levy on certain capital gains.
| No-income-tax state | Effective rate | Rank (1 = highest) | Median annual bill |
|---|---|---|---|
| Alaska | 0.94% | 20 of 50 | $3,976 |
| Florida | 0.78% | 27 of 50 | $2,993 |
| Nevada | 0.50% | 43 of 50 | $2,143 |
| New Hampshire | 1.50% | 5 of 50 | $6,707 |
| South Dakota | 1.00% | 18 of 50 | $2,940 |
| Tennessee | 0.52% | 41 of 50 | $1,488 |
| Texas | 1.40% | 7 of 50 | $4,108 |
| Washington | 0.75% | 30 of 50 | $4,729 |
| Wyoming | 0.53% | 40 of 50 | $1,947 |
The pattern is predictable once you see it. A state that skips an income levy has to fund services somehow, so it leans on sales, property or natural resource revenue. Texas and New Hampshire lean on property. Nevada, Tennessee and Wyoming keep home bills low and collect more through sales, tourism or mineral revenue. Compare the whole tax burden, not one line of it.
Which States Are Trying to Get Rid of Property Taxes?
No state has voted to eliminate the levy. Even Florida’s high-profile 2026 ballot measure stops short of full repeal. Here’s where the most-watched efforts stand as of September 2026:
- Florida (Amendment 3, November 3, 2026): The constitutional amendment passed by the Legislature in June 2026 would raise the homestead exemption for non-school levies to $150,000 in 2027 and $250,000 in 2028, then index it to inflation. School district levies would still apply to full value. New residents would get only $50,000 for their first five years. It needs 60% of the vote. Legislative analysts estimate local revenue would fall by $4.6 billion in the first year and $8.4 billion in the second.
- Ohio: A citizen initiative to abolish real property taxes did not file signatures for the 2026 ballot. Organizers said in June 2026 they would keep collecting and aim for November 2027.
- North Dakota: Measure 4 failed in 2024, with a majority voting no in every county.
Even if Florida’s measure passes, no homeowner there would reach a zero bill, since school levies remain. Replacing the lost revenue dominated North Dakota’s debate, where the Legislature estimated a $3.15 billion cost for the 2025 to 2027 budget cycle, and it’s the same question Florida voters face.
How Local Governments Fund Schools Without a State Levy
This levy is the backbone of local government finance in every state, whether or not the state takes a share. Property taxes made up 28.9% of all state and local tax collections in fiscal 2023, according to the Tax Foundation. They’re the largest single local revenue source because real estate can’t move to another county to avoid the bill, and its value is visible and easy to assess.
In the 14 states with no state-level levy, the state runs on income, sales and other revenue and sends aid down to school districts. Local districts then set their own rates to cover the rest. That’s why Texas has no state property tax but some of the highest school district bills in the country. Hawaii is the opposite case: counties handle property levies and the state funds public schools directly, which keeps homeowner rates low.
Should You Move to a State With Low Property Taxes?
Only if the whole budget improves. A low rate is worth chasing when it isn’t offset by higher income or sales levies, home insurance or house prices. Work through these checks before you decide:
- Estimate the bill on the home you’d actually buy. Use the local rate and your purchase price, since caps reset at sale.
- Add income and sales tax. A 1.40% property rate in Texas may still beat a lower rate paired with a high state income tax, depending on your income.
- Price home insurance. Premiums in hurricane-exposed states can outweigh the savings.
- Check exemption rules and deadlines. Most homestead breaks require you to own and live in the home on a set date and to file by a deadline. Miss it and you pay full freight for a year.
- Factor in the federal deduction. Property taxes count toward the state and local tax deduction if you itemize. The IRS sets the 2026 limit at $40,400 ($20,200 married filing separately), reduced for modified adjusted gross income above $505,000.
If you have a mortgage, your lender usually collects the levy monthly through escrow and pays the property tax bill on your behalf, so a tax bill increase shows up as a higher monthly payment. Budget for that when comparing states.
The bottom line on states with no property tax: there aren’t any, but the gap between states is large enough to matter. Start by pulling your target state’s rate from the table above and running the home you’re considering through its calculator, for example the Texas property tax calculator or the Florida calculator. Then list every exemption you’d qualify for as a veteran, senior or homesteader, and file before the local deadline in your first year.
Frequently Asked Questions
Is there any state in the US with no property tax?
No state is free of property tax. All 50 states and Washington, D.C. have local property levies. Fourteen states collect no property tax at the state level, including Texas, Florida, Hawaii and New York, but counties, cities and school districts in those states still send bills.
Which state has the lowest property taxes?
Hawaii ranks lowest at 0.29%, per the latest rankings built on 2024 Census data. Alabama is second at 0.37%. For the smallest typical tax bill, West Virginia ($881) and Alabama ($890) had the lowest median payments in the 2024 American Community Survey.
What states have no property tax for 100% disabled veterans?
Texas, Florida and Virginia fully exempt the homestead of a veteran with a 100% service-connected disability rating, and several other states offer similar breaks. Each state sets its own rules on permanent and total ratings, individual unemployability, land limits and surviving spouses.
Which states have no property tax for seniors?
No state exempts every senior. Alabama comes closest: owners 65 and older with net taxable income of $12,000 or less pay no ad valorem taxes on their homestead, and all Alabama seniors skip the state portion. Most other states offer partial exemptions, freezes or circuit breaker credits.
Which states are getting rid of property taxes?
None has eliminated them. Florida voters decide Amendment 3 on November 3, 2026, which would raise the non-school homestead exemption to $250,000 by 2028. An Ohio abolition initiative is targeting 2027, and North Dakota voters rejected abolition in 2024.