Wyoming is the #10 state with the lowest property taxes

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.

Wyoming by the numbers

- Effective real estate tax rate: 0.61%
- Annual taxes on $217.5k home: $1,319
- Wyoming's median home value: $220,500
- Annual taxes on Wyoming's median home: $1,337

Wyoming, where there is no state income tax, has become well-known as a tax haven for wealthy residents—and the real estate tax rate is no exception to this rule.

The reason real estate taxes are so low in Wyoming is that the state assesses residential property at just 9.5% of its fair market value, which means residents who own property in Wyoming are paying taxes on less than 10% of their fair market property value. This fair market value is assessed on the county level, and properties are only required to be physically inspected and reassessed every six years—so there are typically no annual valuation hikes to contend with.

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