See how low property taxes in Florida are

Ask any homeowner about expenses and they’ll tell you: If you’re a first-time buyer, you need to carefully calculate the total cost of owning a home before taking the plunge into homeownership.

Owning a home comes with dozens of additional costs, from mortgage payments and interest to upkeep, renovations, and household utility bills. It doesn’t take long before expenses add up—especially when they come on top of potential property tax costs.

To determine which states offer the lowest in property taxes, Roofstock analyzed 2021 data from Wallethub and the U.S. Census Bureau. Costs were then determined for real estate property tax rates, median real estate tax payments, and median home prices for every state and Washington D.C. These amounts were then contextualized with what first-time homebuyers need to know about property taxes.

Florida by the numbers

- Effective real estate tax rate: 0.89%
- Annual taxes on $217.5k home: $1,934
- Florida's median home value: $215,300
- Annual taxes on Florida's median home: $1,914

Real estate taxes in Florida are low compared to many other states, and for good reason. Florida does not collect any property taxes, which helps to keep the real estate tax burden low in many areas. That said, local governments assess real estate taxes on the county level and counties receive a lot of their funding through these taxes. Florida property taxes, therefore, vary dramatically from county to county with some residents paying significantly more than the state average.

Homeowners in West Palm Beach paid a 2021 real estate tax rate of 4.96% on property, which is about five times the state average. However, there are certain statewide exemptions—like homestead exemptions and active duty and veteran exemptions—that can help reduce the costs of real estate taxes for Florida homeowners.

In some states, the high cost of property taxes can cause a home with an otherwise affordable price tag to be well out of someone’s price range. In others, the low cost of property taxes could give you a little more wiggle room in your budget—which is never a bad thing.

If the idea of weighing the estimated costs of property taxes seems overwhelming to you, start by looking at the states with the lowest property taxes listed below. The national list is reverse-ordered by effective real estate tax rate, with Hawaii as the state with the lowest property taxes, though the results would look different if it was ordered by the taxes on the state's median home. Whether you're looking for a dream home or next big investment, owning a home comes with several additional costs, property taxes being one of them.

States with the lowest property taxes

#1. Hawaii: 0.28% effective real estate tax rate
#2. Alabama: 0.41% effective real estate tax rate
#3. Colorado: 0.51% effective real estate tax rate
#4. Louisiana: 0.55% effective real estate tax rate
#5. Washington, D.C.: 0.56% effective real estate tax rate