Homeowners in These 15 Counties Pay the Lowest Property Taxes in the U.S.

Looking at property taxes in the U.S. reveals a stark divide. In more than a dozen counties with the nation's highest property taxes, the typical homeowner pays over $10,000 per year.

In 15 counties at the other end of the spectrum, the median annual bill is less than $300.

Property taxes are a growing strain on household budgets, but these bills are not high everywhere. The cheapest property taxes are generally found in counties with low effective tax rates and lower home values.

Property taxes are primarily charged at the local level, where they fund schools, police departments and other agencies. They make up about 29% of local and state tax collections, according to the Tax Foundation, a nonpartisan tax policy nonprofit that recently updated its analysis of property taxes by state and county.

Nationwide, the average amount paid in property taxes was about $1,900 in 2023, according to the Tax Foundation. That figure may be even higher now, as rising home values continue to push up property taxes when homes are assessed, prompting lawmakers in several states to consider cuts.

Some states rely on high property taxes "in lieu of other major tax categories," according to the Tax Foundation report, while others have relatively high taxes across the board. Effective property tax rates ranged from 0.29% in Hawaii to 1.88% in New Jersey as of 2024.

Why some counties have ultra-low property taxes

Having an annual property tax bill of just a few hundred dollars (rather than a few thousand) can give homeowners flexibility in their budgets. But property taxes are just one of many homeownership costs.

It's also important to understand what property taxes typically fund — and the tradeoffs that can come with low property taxes, such as higher income or sales taxes and potentially schools and local services with fewer resources.

"While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: The people paying the property tax bills are most often the ones benefiting from the services (e.g., K-12 education, local surface roads, police and fire service, and parks)," the Tax Foundation wrote in its report.

However, this isn't always true. Counties and states with higher property taxes may struggle with government waste or municipal debt. In those cases homeowners may pay more to the government with little to show for it.

U.S. counties with the lowest property taxes

The counties with the lowest property taxes tend to have a few things in common: They are generally in rural areas in low-property-tax states with affordable homes.

In fact, the 15 counties with the lowest property taxes are all in just four states: Alabama, Alaska, Louisiana and South Dakota.

According to the Tax Foundation, the following areas had property tax bills below $300 in 2024:

• Aleutians East Borough, Alaska
• Bethel Census Area, Alaska
• Copper River Census Area, Alaska
• Kusilvak Census Area, Alaska
• Northwest Arctic Borough, Alaska
• West Carroll Parish, Louisiana
• Oglala Lakota County, South Dakota
• Choctaw County, Alabama
• Tensas Parish, Louisiana
• Avoyelles Parish, Louisiana
• Allen Parish, Louisiana
• Lamar County, Alabama
• East Carroll Parish, Louisiana
• Perry County, Alabama
• Bibb County, Alabama

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