States With No Property Tax 2019

Residents of the United States are familiar with paying taxes. Individuals pay federal income taxes and additional state income taxes that vary depending on their state of residence. In addition to income taxes, property taxes may also be applicable.

Property tax is a real estate ad-valorem tax, considered a regressive tax, levied by the jurisdiction in which the property is located and paid for by the property owner. Taxes are determined by multiplying the property tax rate by the current market value and are recalculated annually. Property taxes are used to fund education, infrastructure, law enforcement, parks and recreation, public transportation, and water and sewer improvements.

Unfortunately, every state has property taxes; however, some property taxes are very low and others do not apply to vehicles. States that have lower property taxes may have higher costs elsewhere, such as a high sales tax, in order to make up for the costs.

Twenty-three states and Washington D.C. do not levy property taxes on vehicles. A recent analysis by WalletHub revealed that blue states tend to have lower vehicle property taxes than red states, with an average of $212 and $238 respectively. Fourteen of the 23 states with no vehicle property tax are blue states, including the District of Columbia, while nine are red.

As previously stated, there are no states that have no real estate property tax. There are 26 states, however, that have property taxes below 1.00%. Some of the highest property taxes can generally be found in the northeast, with the highest rate being 2.44% in New Jersey.

Which state has the lowest property tax rate? Hawaii has the lowest property tax rate of 0.27%. Although this rate is very low, Hawaii has a very high median house cost; therefore, homeowners will still pay a high amount in real estate property taxes. Luckily, Hawaii is one of 23 states that does not have a property tax on vehicles.

Alabama has not only the second-lowest property tax rate of 0.42% but also has one of the lowest median home prices ($130,500) well below the median home value in the United States ($225,300). This makes the median annual tax only $558. As a bonus, Alabama is also one of 23 states that do not charge a property tax on vehicles.

State Property Tax Rank Property Tax Rate Median Annual Tax 2019 Pop.
Hawaii10.27%$1,5291,416,589
Alabama20.42%$5584,898,246
Louisiana30.52%$7954,652,581
Colorado40.55%$1,5755,770,545
Delaware50.56%$1,329975,033
South Carolina60.57%$8515,147,111
West Virginia70.59%$6531,791,951
Wyoming80.61%$1,256572,381
Arkansas90.63%$7433,026,412
Utah100.66%$1,5763,221,610
Nevada110.69%$1,4893,087,025
Arizona120.72%$1,3987,275,070
Tennessee130.74%$1,1206,833,793
Idaho140.75%$1,3221,790,182
California150.77%$3,41439,747,267
New Mexico160.78%$1,2722,096,034
Mississippi170.80%$8792,987,895
Virginia170.80%$2,0498,571,946
Montana190.84%$1,7561,074,532
Kentucky200.86%$1,1204,484,047
North Carolina200.86%$1,37810,497,741
Indiana220.87%$1,1306,718,616
Oklahoma230.90%$1,1293,948,950
Georgia240.91%$1,44810,627,767
Florida250.98%$1,75221,646,155
Missouri260.99%$1,4356,147,861
North Dakota271.01%$1,765760,900
Washington281.03%$2,9587,666,343
Oregon291.04%$2,7554,245,901
Maryland301.10%$3,2576,062,917
Minnesota311.15%$2,2965,655,925
Alaska321.19%$3,117735,720
Massachusetts331.22%$4,3096,939,373
South Dakota341.32%$2,012892,631
Maine351.35%$2,4351,342,097
Kansas361.40%$1,9522,910,931
Iowa371.53%$2,0993,167,997
Ohio381.57%$2,12411,718,568
Pennsylvania391.58%$2,69112,813,969
Michigan401.64%$2,24110,020,472
Rhode Island411.66%$4,0131,056,738
New York421.68%$4,91519,491,339
Nebraska431.80%$2,5651,940,919
Texas441.83%$2,77529,087,070
Vermont441.83%$4,040627,180
Wisconsin461.94%$3,2865,832,661
Connecticut472.07%$5,5823,567,871
New Hampshire482.20%$5,3881,363,852
Illinois492.31%$4,15712,700,381
New Jersey502.44%$7,8408,922,547