Best States for Low Property Taxes (2025)

Best States for Low Property Taxes: Tax Incentives and Real Estate Value

For homeowners, property taxes can be a significant expense. States with lower property taxes provide financial relief, making homeownership more affordable and allowing residents to stretch their budgets further. Some states also offer additional tax incentives, ensuring homeowners get the most value from their real estate investments. Here are the best states for low property taxes in 2025, combining affordability with smart financial opportunities.

1. Hawaii

Hawaii boasts the lowest property tax rate in the nation, making it an appealing option for homeowners.
Tax Incentives: Hawaii’s property tax rate is only about 0.30%, significantly lower than the national average. Homeowners benefit from generous exemptions for primary residences.
Real Estate Value: While property prices are high, Hawaii’s low taxes help offset the costs. The state’s unique combination of natural beauty and strong property demand ensures long-term value.
Why It’s Great: Hawaii offers an unbeatable lifestyle with the added financial benefit of minimal property taxes.

2. Alabama

Alabama is a top choice for homeowners seeking low property taxes and affordable living.
Tax Incentives: With an average property tax rate of just 0.41%, Alabama provides significant savings for homeowners. Seniors may also qualify for additional tax exemptions.
Real Estate Value: Housing in Alabama is among the most affordable in the country, making it a great place to buy and maintain property.
Why It’s Great: Alabama’s combination of low taxes and affordable real estate makes it an excellent option for budget-conscious homeowners.

3. Colorado

Colorado offers low property tax rates alongside strong real estate appreciation.
Tax Incentives: The state’s average property tax rate is 0.51%, making it one of the most affordable states for homeowners. Property tax laws favor primary residences, with exemptions available for senior citizens.
Real Estate Value: Colorado’s booming housing market and increasing property values ensure homeowners see strong returns on their investments.
Why It’s Great: Colorado combines low taxes with a high quality of life and strong growth potential in real estate.

4. Louisiana

Louisiana is known for its low property taxes and reasonable home prices.
Tax Incentives: The state’s property tax rate averages 0.55%, one of the lowest in the U.S. Homestead exemptions further reduce the tax burden for owner-occupied properties.
Real Estate Value: Louisiana offers affordable housing options, particularly in suburban and rural areas, with opportunities for steady value appreciation.
Why It’s Great: Louisiana provides homeowners with a mix of low taxes, affordable real estate, and cultural charm.

5. Wyoming

Wyoming is a haven for low taxes, making it a top destination for property owners.
Tax Incentives: With a property tax rate of just 0.57%, Wyoming offers significant savings. The state also has no state income tax, enhancing its financial appeal.
Real Estate Value: Wyoming’s housing market is stable, with affordable options in both urban and rural areas. Large land parcels are particularly attractive for those seeking space and privacy.
Why It’s Great: Wyoming’s low taxes and wide-open landscapes make it perfect for those looking to stretch their dollar.

6. South Carolina

South Carolina’s low property taxes and scenic charm attract many homeowners.
Tax Incentives: The state’s average property tax rate is 0.57%, and additional tax breaks are available for seniors and veterans.
Real Estate Value: Housing costs in South Carolina are below the national average, with growing markets in cities like Charleston, Greenville, and Columbia.
Why It’s Great: South Carolina’s low taxes, affordable housing, and coastal lifestyle make it a great place to own property.

7. Delaware

Delaware combines low property taxes with other financial perks for homeowners.
Tax Incentives: With an average property tax rate of 0.57%, Delaware is one of the most affordable states for property owners. The state also has no sales tax, adding to its financial appeal.
Real Estate Value: Delaware’s housing market offers a mix of affordability and coastal charm, with steady appreciation in popular areas like Rehoboth Beach.
Why It’s Great: Delaware’s low taxes and proximity to major metropolitan areas make it an ideal choice for homeowners.

8. West Virginia

West Virginia offers some of the most affordable living and property tax rates in the U.S.
Tax Incentives: The state’s property tax rate averages 0.58%, and homeowners benefit from low overall living costs.
Real Estate Value: West Virginia’s housing market is highly affordable, with opportunities for investment in rural and suburban areas.
Why It’s Great: West Virginia’s low taxes and affordable housing make it a top choice for first-time buyers and retirees.

9. Arkansas

Arkansas is an affordable state for homeowners, with low property taxes and housing costs.
Tax Incentives: With a property tax rate of 0.61%, Arkansas provides significant savings. Homestead exemptions further reduce taxes for owner-occupied homes.
Real Estate Value: The state’s affordable housing market offers opportunities for value appreciation, particularly in growing cities like Fayetteville and Little Rock.
Why It’s Great: Arkansas’s low taxes and cost of living provide excellent financial opportunities for homeowners.

10. Mississippi

Mississippi offers some of the lowest living costs and property taxes in the nation.
Tax Incentives: The state’s property tax rate is 0.62%, and additional exemptions are available for seniors and disabled homeowners.
Real Estate Value: Mississippi’s affordable housing market ensures buyers can find quality homes at reasonable prices.
Why It’s Great: Mississippi combines low property taxes with an affordable cost of living, making it ideal for budget-conscious homeowners.

Conclusion

For homeowners looking to save money, states with low property taxes offer significant financial advantages. States like Hawaii, Alabama, and Wyoming stand out for their exceptionally low rates, while places like South Carolina and Colorado balance affordability with strong real estate value. By choosing a state with favorable tax policies, homeowners can make their dollars go further and enjoy the benefits of affordable living and long-term property investment.