Hey there, welcome to GovCat.net, your friendly tax blog! and today we’re diving into a hot topic: “Which states have no property tax on homes?” Spoiler alert: it’s not as simple as finding a state with zero property tax, but there are some sweet exemptions and low-rate options that can feel like a tax-free dream. Whether you’re a homeowner, a senior, or planning a move, we’ll cover states with no property tax for specific groups, vehicles, and even those with no income tax. Plus, we’ll peek at countries with no property tax and highlight the highest and lowest tax states for 2025. Grab a coffee, and let’s get started!
Which States Have No Property Tax on Homes?
Let’s cut to the chase: no U.S. state is completely free of property taxes on homes. Property taxes fund local services like schools, roads, and police, so every state levies them, though rates and exemptions vary widely.
The average American homeowner pays about $2,869 annually, but some states offer exemptions that can effectively eliminate property taxes for certain groups, like seniors or veterans.
While no state has a blanket “no property tax” policy, low rates and generous exemptions can make homeownership feel nearly tax-free in some places. Let’s explore the closest you can get!
Which States Have No Property Tax for Seniors?
Seniors, listen up! Many states offer property tax exemptions or freezes for homeowners aged 65 and older, sometimes wiping out the tax bill entirely for qualifying low-income seniors. Here are some standouts:
- Alabama: Seniors 65+ with incomes under $12,000 can get a full exemption on property taxes for their primary residence.
- Florida: Seniors 65+ with incomes below $36,678 (2025) may qualify for a total exemption on homesteads via the Senior Citizen Exemption, especially in certain counties.
- Texas: Homeowners 65+ get a $10,000 homestead exemption, and some counties offer full exemptions for low-income seniors. Taxes can be deferred until the home is sold.
- South Dakota: Seniors 70+ can delay property taxes until the home is sold through a homestead exemption, effectively paying $0 during their lifetime if income-qualified.
- Georgia: Seniors 65+ with incomes under $10,000 can claim a $4,000 exemption from county ad valorem taxes, potentially eliminating taxes in low-value homes.
These exemptions often require applications through county assessors, so check local rules. Washington, for example, starts exemptions at age 61 for low-income seniors, reducing taxes significantly.
| State | Senior Exemption Details | Income Limit (2025) |
|---|---|---|
| Alabama | Full exemption on homestead | $12,000 |
| Florida | Total exemption in some counties | $36,678 |
| Texas | $10,000 exemption; possible deferral | Varies by county |
Which States Have No Property Tax on Vehicles?
Personal property taxes on vehicles can add up, averaging $440 annually in the 23 states that impose them. Luckily, 27 states and Washington, D.C., don’t tax vehicles, making car ownership cheaper. Some examples include:
- Alaska
- Delaware
- Florida
- Georgia
- Hawaii
- Illinois
- Louisiana
- New Hampshire
- Tennessee
- Texas
These states skip vehicle taxes, but watch for other levies like registration fees or sales taxes. For instance, Tennessee has high sales taxes (9.55%), which can offset savings.
| State | Vehicle Tax Status |
|---|---|
| Florida | No vehicle property tax |
| Texas | No vehicle property tax |
| New Hampshire | No vehicle property tax |
States with No Property Tax or Income Tax
Finding a state with no property tax and no income tax is a unicorn—there’s no such place, as all states have property taxes. However, nine states have no income tax, which can pair nicely with low property taxes for a lighter tax burden. These states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Here’s how a few stack up with property taxes:
- Nevada: Low property tax rate (0.59%), median bill $1,970. No income tax makes it retiree-friendly.
- Tennessee: Property tax rate of 0.55%, median bill $1,400. No income tax, but high sales taxes.
- Wyoming: Property tax rate of 0.58%, median bill $1,659. No income tax or estate taxes.
These states rely on sales taxes or tourism revenue to offset lower property and income taxes, so consider the overall cost of living.
States with Low Property Tax and No Income Tax
For the best of both worlds, focus on states with low property taxes and no income tax. Here are top contenders:
- Alaska: Property tax rate of 1.04%, but exemptions for seniors and veterans keep bills low (median $3,785). No income or sales tax.
- Nevada: Property tax rate of 0.59%, median bill $1,970. No income tax and moderate sales taxes.
- Tennessee: Property tax rate of 0.55%, median bill $1,400. No income tax, but high sales taxes (9.55%).
- Wyoming: Property tax rate of 0.58%, median bill $1,659. No income tax and low sales taxes (5.44%).
| State | Property Tax Rate | Median Bill | Income Tax |
|---|---|---|---|
| Nevada | 0.59% | $1,970 | None |
| Tennessee | 0.55% | $1,400 | None |
| Wyoming | 0.58% | $1,659 | None |
What State Has the Lowest Property Taxes for Retirees?
For retirees, low property taxes and senior exemptions are key. Alabama takes the crown with a property tax rate of 0.41% and a median bill of $895. Seniors 65+ with incomes under $12,000 can get a full exemption, making it possible to pay $0 on a modest home. The state’s low median home value ($142,700) and no tax on Social Security benefits sweeten the deal. Other retiree-friendly states include:
- Hawaii: Lowest rate (0.28%), but high home values ($615,300) mean median bills are $606.
- Louisiana: Rate of 0.55%, with a $7,500 homestead exemption reducing bills. Median bill $795.
- Tennessee: Rate of 0.55%, median bill $1,400, with a tax freeze for seniors 65+.
Alabama’s combo of low rates and exemptions makes it ideal for retirees on fixed incomes.
What States Have the Highest Property Taxes?
On the flip side, some states hit homeowners hard. Based on effective property tax rates, here are the top five with the highest property taxes in 2025:
- New Jersey: 2.49% rate, median bill $5,419. High home values ($335,600) and no local income/sales tax options drive costs.
- Illinois: 2.27% rate, median bill $4,912. Rapid tax increases outpace home value growth.
- New Hampshire: 2.18% rate, median bill $5,701. No income or sales tax means heavy reliance on property taxes.
- Connecticut: 2.14% rate, median bill $5,825. High per capita tax burden ($2,847).
- Vermont: 1.90% rate, median bill $4,326. High home values ($227,700) add to the burden.
These states often fund robust local services, but the tax bills can sting, especially in urban areas like Manhattan or Chicago.
| State | Property Tax Rate | Median Bill |
|---|---|---|
| New Jersey | 2.49% | $5,419 |
| Illinois | 2.27% | $4,912 |
| New Hampshire | 2.18% | $5,701 |
Countries with No Property Tax
Looking beyond the U.S., some countries don’t levy property taxes, which can be a draw for expats or investors. Examples include:
- Monaco: No property or income taxes, but high real estate costs.
- Cayman Islands: No property or income taxes; relies on stamp duties and tourism.
- Bermuda: No property tax, but land taxes apply based on rental value.
- Saudi Arabia: No property tax; revenue from oil and zakat (charitable tax).
These places often have high living costs or other taxes (e.g., VAT), so weigh the full financial picture before dreaming of a tax-free villa.
Property Tax by State Map
Visualizing property taxes helps put things in perspective. While I can’t embed a map here, check out the Tax Foundation’s 2025 property tax map at taxfoundation.org for a color-coded view of effective rates by state and county. Key takeaways:
- Lowest Rates: Hawaii (0.28%), Alabama (0.41%), Colorado (0.51%), Louisiana (0.55%).
- Highest Rates: New Jersey (2.49%), Illinois (2.27%), New Hampshire (2.18%), Connecticut (2.14%).
- Urban vs. Rural: Urban counties (e.g., Manhattan, San Francisco) often have higher median bills due to elevated home values, even if rates are moderate.
The map shows how local millages (tax per $1,000 of value) vary, so your actual bill depends on your home’s assessed value and county rules.
Wrapping It Up
While no U.S. state eliminates property taxes entirely, places like Alabama, Tennessee, and Nevada come close with low rates and exemptions, especially for seniors. States with no income tax, like Wyoming and Florida, can lighten your overall tax load, but watch for sales taxes or high home values.
For retirees, Alabama’s senior exemptions make it a standout. Internationally, spots like Monaco offer no property tax, but the cost of living might give you sticker shock. Use tools like the Tax Foundation’s map to compare states, and always check local exemptions with your county assessor. Stay tuned to GovCat.net for more tax tips, from refunds to retiree strategies. Got a question? Email me at contact@govcat.net. Happy tax planning!
Disclaimer: GovCat.net is a personal blog, not affiliated with any government agency, the Governmental Collectors Association of Texas (GCAT), or prior lottery site misuse. Information is for educational purposes only; consult a professional for tax advice.
