9 States With the Lowest Property Tax Rates

Hands forming a tax shelter over money
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On average, American households spend $2,471 per year on real-estate property taxes — although in some states, it’s less than half that.

That’s according to a recent ranking by WalletHub, which studied real estate and vehicle taxes in every state and the District of Columbia. To get the effective real-estate tax rate in each state, the site divided the typical real-estate tax payment there by the typical home price.

Following are the states that have the lowest effective real-estate property tax rates, according to WalletHub.

10. Wyoming

People kayaking on a lake with a mountain in the background.
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State’s effective real-estate tax rate: 0.61%

The typical property tax payment on a median-priced home in Wyoming is $1,337. However, a recent law allows eligible homeowners to receive a refund of up to half of their property tax bill.

9. Nevada

Spring Valley, Nevada
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State’s effective real-estate tax rate: 0.60%

In Nevada, the typical household spends $1,614 on property taxes. A separate analysis by the Tax Foundation ranked Nevada even better for property taxes: No. 5 in the nation.

8. West Virginia

West Virginia
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State’s effective real-estate tax rate: 0.58%

The median spending on real estate property taxes in the Mountain State is $698. Sound too good to pass up? Good news: West Virginia is one of “10 Places That Will Pay You to Move There in 2022.”

6. Delaware (tie)

Wilmington, Delaware
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State’s effective real-estate tax rate: 0.57%

The typical property tax payment in Delaware is $1,431. However, the state has a property tax credit for seniors that averages $340, according to Delaware Business Now, and state lawmakers are currently considering raising the maximum credit amount.

6. South Carolina (tie)

Spartanburg, South Carolina
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State’s effective real-estate tax rate: 0.57%

A typical South Carolina homeowner pays $924 in property taxes each year on a median-priced home. The state is also home to one of the “10 of the Most Undervalued Housing Markets in America,” but don’t tell anyone.

5. Washington, D.C.

Washington D.C.
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State’s effective real-estate tax rate: 0.56%

The median spending on real estate property taxes in the nation’s capital is $3,378. In 2021, the metro area was considered one of the hardest places to buy a home in the U.S.

4. Louisiana

New Orleans Louisiana
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State’s effective real-estate tax rate: 0.55%

The typical property tax payment on a median-priced home in Louisiana is $890. Residents will have the chance to vote on two state constitutional amendments in November 2022 that could improve property tax exemptions for people with disabilities and also specifically for disabled veterans.

3. Colorado

Denver, Colorado
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State’s effective real-estate tax rate: 0.51%

The median spending on real-estate property taxes in the Centennial State is $1,756. A newly passed law will slow any increase in property taxes and save homeowners a collective $700 million over two years, according to a Denver-based NBC affiliate.

2. Alabama

Tuscaloosa Alabama
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State’s effective real-estate tax rate: 0.41%

A typical Alabama homeowner with a median-priced house pays $587 in property taxes each year — the lowest in the nation. The state also is home to two of the most undervalued housing markets in the U.S.

1. Hawaii

Lanikai Beach in Kailua, Hawaii
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State’s effective real-estate tax rate: 0.28%

In Hawaii, the typical household spends $1,715 on property taxes for a median-valued home. Having the nation’s lowest effective property taxes may help explain why more than a quarter of its homeowners have lived in their current homes for 30 years or more.

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