But few realize that in some parts of the United States, property taxes can be less than the cost of a weekend getaway. For homeowners tired of climbing bills, that is more than trivia-it’s a potential game-changer. Property-tax assessments have risen over the last five years as surging home values pinch many households. The median property tax bill nationwide reached $3,500 last year, up 2.8% from 2023, according to Realtor.com. Of course, not all states are equal when it comes to the burden of taxation-while some areas, largely in the Northeast, carry steep bills, others are a far lighter burden.
Often, these gaps come down to home values, local government spending, and how states structure their taxes. “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,” says Realtor.com’s Hannah Jones. Here’s a closer look at nine states where homeowners enjoy the lowest median property taxes in the nation.
1. West Virginia: The Nation’s Lowest
West Virginia’s median property tax bill is a low $728; its median list price on homes is only $261,500 compared with the national average of $429,990. Lower home values, along with modest tax rates, keep annual bills low and make the Mountain State a standout for budget-conscious buyers. That said, counties here generally keep spending in check, and rates remain low. For retirees or remote workers seeking scenic living without hefty taxes, West Virginia has a balance of affordability and natural beauty that is highly appealing.
2. Alabama: Affordable Homes, Low Taxes
With a median tax bill of $804 and a median home price of $329,950, Alabama has one of the most affordable property tax environments in the United States. In fact, the effective tax rate in the state is among the very lowest nationally, at 0.38 percent. In rural counties, such as Choctaw, the median property taxes are below $200 annually, while in urban areas, like Shelby County, they reach about $1,343. This is factoring in the local property values and cost of services, but overall, Alabama is a an attractive destination for low-tax living.
3. Arkansas: Third-Lowest Bills Nationwide
The median paid amount of property taxes that homeowners in Arkansas pay is $871, and the median price for homes is about $304,950. Reliance on local sales taxes supplements the property tax revenue, so mill rates remain moderate. With lower household incomes and consumption levels, the local governments have to carefully balance their revenue needs, and the approach adopted by Arkansas has kept property taxes below $1,000 for most residents, which is quite an attractive proposition for first-time buyers.
4. Mississippi: Modest Rates and Values
The median property tax bill in Mississippi comes out to $1,034, with a median home price well under the national average. Rural counties often record some of the lowest bills in the South, bolstered by frugal local budgets. While many services, including schools and infrastructure, depend on property taxes, lower house costs in the state mean that even moderately set rates result in manageable bills for homeowners.
5. South Carolina: Coastal living without coastal tax
The average levy for a property in the state of South Carolina stands at $1,328 while the median home price reached $216,200. The effective rate in this state is close to 0.53 percent, well below the national average. The classification systems in this state are an advantage to homeowners, with certain exemptions helping to keep the bills low, such as relief from school operation taxes. This makes the coastal and inland communities of South Carolina desirable for those seeking lifestyle perks without high tax burdens.
6. Tennessee: Low Taxes in a Growing Market
Property taxes in Tennessee carry a median of $1,333, as its housing market is currently on the rise. There is no state income tax in Tennessee, so local governments rely more on property taxes-yet the rates remain moderate. While cities like Nashville might have strong economic growth, statewide, lower home values keep annual bills more in check and make even popular urban hubs more affordable.
7. Louisiana: Keeping Costs Manageable
The state median property tax bill is $1,415, with a median home price of $198,300. In some parishes, bills fall below $300 annually due to low property values and targeted exemptions. Many states’ classification systems tax commercial and rental properties at higher rates to ease the burden on owner-occupied homes. This balances affordability for residents with the funding of essential services.
8. Oklahoma: Moderate Rates, Manageable Bills
Oklahoma residents have a median property tax of $1,481. The state’s mix of urban and rural areas results in varied rates, but overall, bills remain below the national average. Local governments balance property tax revenue with other sources, keeping mill rates from spiking even as certain regions experience growth.
9. Kentucky and Michigan: Just Above $1,500
Kentuckians pay a median property tax bill of $1,551, versus $1,670 for Michiganders. Both benefit from moderate home values and relative restraint in local spending. In Michigan, effective rates can be sharply different between cities like Detroit, which has low home values that push rates higher, and smaller towns where the cost for service is decidedly lower. Kentucky’s rural counties often show some of the lowest bills in the state, making both states appealing for buyers who want to balance services with affordability.
While property taxes are just one part of the homeownership picture, they have a significant bearing on long-term affordability. States where the bills are lower often combine modest home values with restrained local spending and homeowner-friendly tax structures. To buyers and homeowners, this more than just means saving money-it means finding a place where the cost of keeping a roof overhead is in line with personal and financial goals.
