Are There Any States with No Property Tax in 2020?

Are There Any States with No Property Tax in 2020? [Free Investor Guide]

Summary: In this article, find out if there are any states with no property tax in 2020. Topics also include states with the lowest and highest property taxes, and states with property tax exemptions for seniors, disabled veterans and disabled people. 

Introduction

The average American homeowner spends around $2,300 on property taxes for their homes every year. 27 states also have a personal property tax on vehicles, tacking on another $440 for residents. Unfortunately, every state in the U.S. has some type of property taxes.

However, there are 11 states that have very low property taxes, and 23 with no personal property tax on vehicles. Other states have lower property taxes with higher taxes on things like gas, sales or income. 

Whether you rent or own, we all pay property taxes in one way or another. But the property tax burden will vary significantly between states, counties and even local municipals. That’s why homeowners and real estate investors should know how much they’ll be paying in property taxes each year, depending on where the home is located.

Keep reading to find out which states have the lowest property taxes, states with no personal property tax on vehicles, and states that offer property tax relief to seniors, veterans, and disabled people.


0 States with No Property Tax

While there aren’t any states that don’t have any property tax on real estate, some have much lower property tax rates than others. 

The effective property tax rate is used to determine the places with the lowest and highest property taxes in the nation. To calculate effective property tax rate, take the total amount of property taxes paid annually as a percentage of the total value of all occupied homes, for all 50 states.

The following are the top 11 states with the lowest property tax rates in the nation.


11 States with the Lowest Property Tax Rates

Image Highlighting 11 States with the Lowest Property Tax Rates

These 11 states boast the lowest effective property tax rates in the country. 

#1: Hawaii

With the lowest effective property tax rate in the nation, Hawaii residents only pay 0.27% of their home value. However, it also has the highest median home values in the U.S. at $619,000. 

Property Tax Rate: 0.27%

#2: Alabama

One of the most affordable states for homeowners, Alabama has the second lowest property tax rate in the country and below average median home prices of $134,300. 

Property Tax Rate: 0.42%

#3: Louisiana

Another state with a low property tax rate and median home values well below the national average. Louisiana enjoys average median home prices of just $147,600. 

Property Tax Rate: 0.52%

#4: Colorado

While the property tax rate is the fourth lowest in the nation, above average median home prices ($381,300) make Colorado the highest tax burden state on our list. 

Property Tax Rate: 0.55%

#5: Delaware

Delaware has a slightly higher property tax rate than Colorado, but lower median home prices of $236,300. Plus, the state has no sales tax.

Property Tax Rate: 0.56%

#6: South Carolina

Although South Carolina has a higher property tax rate than both Delaware and Colorado, their median home values are much lower ($170,700). This means residents won’t be paying as much in property taxes. 

Property Tax Rate: 0.57%

#7: West Virginia

West Virginia is one of the most affordable places to live in the country. With extremely low median home prices of $99,000 and a low effective property tax rate.

Property Tax Rate: 0.59%

#8: Wyoming

Average home prices in Wyoming of $236,300 aren’t the lowest compared to other states. However, with the eighth lowest property tax rate and no state income tax, the Last Frontier State offers a light overall tax burden.  

Property Tax Rate: 0.61%

#9: Arkansas

Low housing costs ($129,500) and a low effective property tax rate, makes Arkansas one of the most affordable states to live for property owners.

Property Tax Rate: 0.63%

#10: Utah

The Beehive state has above average median home prices of $351,100, but is ranked the 10th lowest property tax rate in the country. Utah is also one of the 23 states with no personal property tax on vehicles.

Property Tax Rate: 0.66%

#11: Nevada

Coming in with the 11th lowest property tax rate in the U.S., Nevada residents pay an average of $291,800 for single-family homes. 

Property Tax Rate: 0.69%


11 States with the Lowest Median Annual Property Tax

Image Highlighting 11 States with the Lowest Median Annual Property Tax

The following 11 are states with the lowest annual property taxes based on median home value for single-family homes (including condos and co-ops) across the country.

#1: Alabama

Which state has the lowest property taxes in the nation? That’s right, Alabama homeowners only pay a median property tax of $558 per year, thanks to below average home values and one of the lowest property tax rates in the nation.

Median Annual Property Tax: $558

#2: West Virginia

Below average median home values make West Virginia an affordable, low tax burden state. Residents pay on average just $653 in property taxes per year.

Median Annual Property Tax: $653

#3: Arkansas

Affordable housing and low property tax rates put Arkansas at number three on our list of states with the lowest median annual property tax.

Median Annual Property Tax: $743

#4: Louisiana

On average, Louisiana residents pay just under $800 in annual property taxes. The Pelican State also offers an extremely low cost-of-living.

Median Annual Property Tax: $795

#5: South Carolina

Number six on our list of states with the lowest property tax rates, South Carolina also has a surprisingly low median home prices, easing the property tax burden of its residents.

Median Annual Property Tax: $851

#6: Mississippi

While the Magnolia State isn’t on our list of states with the lowest property tax rates (.80%), it does still provide the sixth lowest average property taxes per year. 

Median Annual Property Tax: $879

#7: Tennessee

Just missing our list of states with the lowest property tax rates, Tennessee is ranked #13 for property taxes.

Median Annual Property Tax: $1,120

#8: Kentucky

Kentucky residents will pay a higher property tax rate (0.80%), but affordable home values bring down the cost of property taxes overall.

Median Annual Property Tax: $1,120

#9: Oklahoma

Oklahoma’s property tax rate is 0.90% (rank #23), but remains affordable for homeowners due to below average housing prices.

Median Annual Property Tax: $1,129

#10: Indiana

Home to the Hoosiers, Indiana’s property tax rates (0.87%) and median home values are extremely comparable to Oklahoma’s. With residents paying just one dollar more per year.

Median Annual Property Tax: $1,130

#11: Wyoming

Low property tax rates of just 0.61% helps offset above average home values in Wyoming. 

This makes The Last Frontier the last state on our list. 

Median Annual Property Tax: $1,256


11 States with Highest Property Taxes

The following states have the highest property taxes compared to all 50 states in the U.S.

#1: New Jersey

Property Tax Rate: 2.44%

Median Annual Property Tax: $7,840

#2: Illinois

Property Tax Rate: 2.31%

Median Annual Property Tax: $4,157

#3: New Hampshire

Property Tax Rate: 2.20%

Median Annual Property Tax: $5,388

#4: Connecticut

Property Tax Rate: 2.07%

Median Annual Property Tax: $5,582

#5: Wisconsin

Property Tax Rate: 1.94%

Median Annual Property Tax: $3,286

#6: Vermont

Property Tax Rate: 1.83%

Median Annual Property Tax: $4,040

#7: Texas

Property Tax Rate: 1.83%

Median Annual Property Tax: $2,775

#8: Nebraska

Property Tax Rate: 1.80%

Median Annual Property Tax: $2,565

#9: New York

Property Tax Rate: 1.68%

Median Annual Property Tax: $4,915

#10: Rhode Island

Property Tax Rate: 1.66%

Median Annual Property Tax: $4,013

#11: Michigan

Property Tax Rate: 1.64%

Median Annual Property Tax: $2,241

23 States with No Personal Property Tax on Vehicles

Image Highlighting 23 States with No Property Tax on Vehicles

While there aren’t any states with no property tax in 2020, there are 23 states (plus the District of Columbia) that with no personal property tax on vehicles. 

  • Hawaii
  • District of Columbia
  • Delaware
  • Utah
  • Tennessee
  • Idaho
  • New Mexico
  • Oklahoma
  • Georgia
  • Florida
  • North Dakota
  • Washington
  • Oregon
  • Maryland
  • Alaska
  • South Dakota
  • Ohio
  • Pennsylvania
  • New York
  • Texas
  • Vermont
  • Wisconsin
  • Illinois
  • New Jersey

13 States with No Property Tax for Seniors/People Over 65

It’s nearly impossible to avoid paying some form of property taxes, especially if you own real estate. But some states are nicer than others regarding local tax exemptions for specific demographics, like senior citizens. 

The majority of states across the U.S. require homeowners to be age 65 or older in order to qualify for property tax exemptions, with a few exceptions. If you’re married and jointly own your primary residence, only one spouse must be older than 65 to qualify for certain senior exemptions. The following states offer friendly property tax exemptions to seniors in order to ease their overall tax burden.

Image Highlighting 13 States with No Property Tax for Seniors Over 65

#1: South Dakota

Tax-wise, South Dakota is one of the best states for retirees. In addition to no state income tax, retired homeowners may also qualify for the state’s property tax relief programs. For low-income South Dakotans over the age of 70, a homestead exemption allows for delaying payment of property taxes until the home is sold. 

#2: Washington

Washington State offers property tax exemptions to senior residents 61 years of age and older.

#3: Florida

Not only do Florida residents enjoy great weather and beautiful beaches, there are also some property tax breaks for seniors. Certain residents may qualify for 100% property tax exemptions or a significant reduction.

#4: Alabama

In Alabama, homeowners over the age of 65 are exempt from all state property taxes. 

#5: Alaska

If you are a homeowner in Alaska and over the age of 65, you’ll get a municipal property tax exemption on the first $150,000 of your home’s value. 

For example, on a $250,000 property in Alaska, you would pay $3,000 annually, at a tax rate of 3%. $250,000 minus $150,000 equals $100,000 times 3%. 

#6: South Carolina

Non-military retirees in South Carolina will enjoy a homestead exemption for homeowners over 65.

#7: Georgia

Retirees in the Peach State may qualify for property tax exemptions or deferrals. 

#8: Hawaii

In Honolulu, Hawaii, residents age 65 and older qualify for an exemption of $120,000 of their home’s value. In 2020, the exemption for seniors will increase to $140,000. 

#9: Mississippi

The effective property tax rate in Mississippi is one of the 10 lowest in the nation. And, anyone over the age of 65 can enjoy a homestead exemption on the first $75,000 of the home’s value. 

#10: South Carolina

Non-military retirees in South Carolina will enjoy a homestead exemption for homeowners over 65.

#11: New York

New York offers a Senior Citizen Exemption of 50% of your homes appraised value. Homeowners must be over the age of 65, with an annual income of $29,000 or less. Qualified residents are only required to pay property taxes on half of their home’s value. 

Note: If a deceased spouse was over the age of 65, New York allows you to continue claiming your exemption. 

#12: Texas

In Harris Country, Texas, better known as Houston, the majority of seniors over the age of 65 don’t have to pay property taxes. Residents in the Houston area are exempt up to $160,000 plus a 20% reduction off home values. 

Note: Like New York, if the deceased spouse was over the age of 65, you may continue claiming your exemption in Texas, however, only if the surviving spouse is 55 or older.

#13: New Hampshire

The state of New Hampshire will increase property tax exemptions every year as you age for residents 65 and older.


States with No Property Tax for Disabled Veterans

Most states also offer property tax exemptions for disabled veterans and even retired military. To learn more about what’s offered in your state, visit this website or check out your state’s veteran benefits.


Property Tax Relief for Disabled People

Disabled people may qualify for property tax exemptions depending on the state. As property taxes are determined by state and local governments, property tax exemptions for the disabled will vary. Visit your state’s website to learn more. 


Conclusion

As we’ve learned, there aren’t any states with no property tax in 2020. However, homeowners and real estate investors alike should understand the overall property tax burden required by their specific state, county and local government. 

Living in a state with less property taxes can save residents thousands of dollars every year, increasing affordability and lowering cost-of-living. 

To learn about more tax-friendly states, check out which states have no income tax or sales tax.


Sources:

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Share on email
Share on print

We help you create passive income & ongoing cash flow… so you can live life on your own terms.

Click here to close

Real estate investing,

simplified.

  • Generate Passive Income
  • Preserve Your Wealth
  • Become Job Optional
Scroll to Top