Lowest Property Tax Jurisdictions in the Year 2025
In the United States, property taxes play a significant role in funding local government budgets, schools, and community services. Here's a look at how property taxes vary across different states.
Idaho, with an effective property tax rate of 0.40%, boasts a median home value of $611,577. This results in an average tax paid annually of $2,430. In comparison, Hawaii, with a median home value of $1,280,490, has a slightly higher effective property tax rate of 0.32%, leading to an average tax paid annually of $4,108.
Alabama, another state with a low property tax rate, has an effective property tax rate of 0.42%. The median home value in Alabama is $305,519, resulting in an average tax paid annually of $1,278. In Baldwin County, Alabama, the average property tax rate is 0.36% and the annual tax paid is $765.
West Virginia has an effective property tax rate of 0.47% and the median home value is $219,671, resulting in an average tax paid annually of $1,027. However, retirees and disabled residents in West Virginia can benefit from tax breaks, with up to $20,000 of the assessed value from their personal residential property exempt from taxes.
Colorado, with an effective property tax rate of 0.50%, has the highest median home value among the states discussed, at $760,134. This results in an average tax paid annually of $3,788. However, the Colorado government recently implemented a bipartisan measure to prevent major property tax increases and save homeowners and local businesses more than $1 billion annually.
In contrast, Utah, with an effective property tax rate of 0.43%, has a lower median home value of $727,896, resulting in an average tax paid annually of $3,155. Utah offers several property tax relief programs, including exemptions for veterans with disabilities, active duty personnel, the legally blind, and low-income homeowners.
Notably, the states with the lowest annual property taxes in 2025 are expected to be Hawaii, Alabama, and Louisiana. Hawaii, despite having the lowest property tax rate, has the highest overall tax burden among these states due to its high cost of living.
Property taxes in Arizona, with an effective property tax rate of 0.41%, are a primary source of funding for local government budgets, schools, special taxing districts, and community colleges. Colorado and Wyoming also have effective property tax rates of 0.48% and 0.43%, respectively, with Wyoming offering several property tax relief programs.
In Delaware, with an effective property tax rate of 0.41% and a median home value of $512,245, retirees can enjoy a property tax credit of up to $500 against school property taxes. Retirees in Idaho could also reduce their property tax bill with a tax break worth between $250 to $1,500.
In conclusion, while property taxes vary significantly across the United States, several states offer property tax relief programs to help reduce the financial burden for homeowners. It's essential for homeowners to understand their state's property tax landscape to make informed decisions about their property investments.
