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States With No Property Tax (2026)

The truth about zero property tax states — and how some homeowners legally pay nothing.

The short answer: No state has zero property taxes

All 50 U.S. states collect property taxes at the local level. However, some states have extremely low rates, and many offer exemption programs that bring certain homeowners' bills to zero — particularly disabled veterans, seniors on fixed incomes, and people with total disabilities.

Property taxes fund local governments — schools, roads, emergency services, parks, and libraries. Because these services exist in every state, no state has been able to eliminate property taxes entirely without replacing that revenue from another source. Some states that might appear to have "no property tax" — like Nevada or Wyoming — still collect local property taxes; they simply supplement revenue with natural resource taxes or tourism levies that reduce the pressure on property owners.

That said, the gap between the lowest and highest property tax states is enormous. If you're looking to minimize your property tax burden, your best options are: choose a low-rate state, apply for every exemption you qualify for, and appeal your assessment if your home is overvalued.

States With the Lowest Property Tax Rates

These states come closest to "no property tax" — each has an effective rate below 0.75%.

#	State	Effective Rate	Median Annual Tax
1	HawaiiHI	0.29%	$1,893
2	AlabamaAL	0.41%	$895
3	ColoradoCO	0.51%	$2,017
4	LouisianaLA	0.55%	$983
5	South CarolinaSC	0.57%	$1,024
6	West VirginiaWV	0.58%	$698
7	NevadaNV	0.59%	$1,660
8	ArizonaAZ	0.60%	$1,648
9	WyomingWY	0.61%	$1,507
10	DelawareDE	0.62%	$1,709

See all 50 states ranked by property tax rate →

Who Can Pay Zero Property Taxes

Certain homeowners can reduce their property tax bill to zero through state and local exemption programs:

Texas — 100% Disabled Veteran Exemption

Veterans with a 100% service-connected disability rating pay zero property taxes on their primary residence, statewide.

Florida — Total & Permanent Disability Exemption

Quadriplegics and certain other totally and permanently disabled persons are exempt from all property taxes on their homestead.

Pennsylvania — Disabled Veterans Exemption

Honorably discharged veterans with a 100% disability receive a full property tax exemption on their primary residence.

Illinois — Disabled Veterans Standard Homestead Exemption

Veterans with a 70%+ service-connected disability receive a full exemption; lower thresholds qualify for partial exemptions.

New Jersey — Disabled Veterans Full Exemption

Veterans with a 100% permanent disability and their surviving spouses are exempt from all property taxes.

Several states — Senior Freeze / Circuit Breaker Programs

Many states cap property taxes for low-income seniors at a percentage of income, effectively zeroing out the tax for qualifying residents. Examples: Illinois Circuit Breaker, New Jersey Senior Freeze, Massachusetts Circuit Breaker.

Exemption eligibility requirements vary. Contact your county assessor's office or state department of revenue to apply.

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Related Guides

Best Homestead Exemptions by State

Reduce your bill with your state's homestead program.

How to Appeal Your Property Tax Assessment

Challenge an over-assessed value and lower your bill.

Frequently Asked Questions

Is there a state with no property tax?

No U.S. state has completely eliminated property taxes. All 50 states levy property taxes at the local level to fund schools, roads, emergency services, and other public infrastructure. However, some states have very low effective rates — Hawaii's 0.29% is the lowest in the nation — and many states offer exemption programs that can reduce certain homeowners' bills to zero.

Which states come closest to having no property tax?

Hawaii (0.29%), Alabama (0.41%), Colorado (0.51%), Louisiana (0.55%), and South Carolina (0.57%) have the lowest effective property tax rates in the country. In absolute dollar terms, Alabama, West Virginia, and Louisiana have the lowest median annual tax bills.

Can veterans avoid paying property taxes?

Yes — many states offer full property tax exemptions for veterans with a 100% service-connected disability rating. Texas, Florida, Pennsylvania, Illinois, New Jersey, and over a dozen other states provide complete exemptions for qualifying disabled veterans. Requirements vary by state; contact your county assessor's office or state veterans affairs department for eligibility details.

What is a homestead exemption and how much does it save?

A homestead exemption reduces the taxable assessed value of your primary residence, lowering your annual tax bill. The savings range from modest (California's $7,000 assessed value reduction saves roughly $70/year) to substantial (Texas' $100,000 school district exemption and Florida's $50,000 exemption save thousands annually for eligible homeowners). Most states require you to apply; the exemption is not automatic.

How can I reduce my property tax bill?

There are four main strategies: (1) Apply for every exemption you qualify for — homestead, senior, veteran, disability. (2) Appeal your assessment if you believe your home is overvalued relative to comparable sales. (3) Check whether your county offers a payment plan or senior freeze program. (4) If you're considering moving, factor property tax rates into your location decision. Our guides on homestead exemptions and how to appeal walk through each of these in detail.

Information is for reference only. Tax rates and laws vary by jurisdiction — consult your local assessor's office or a tax professional for advice specific to your situation.