Retirement states: property tax ranking

All 50 states and DC ranked by effective property tax rate — lowest (most retirement-friendly on property taxes) to highest.

Last reviewed Sources & methodology
Note: This ranking uses property tax alone. A complete retirement-friendly assessment should also factor state income tax (especially retirement income tax treatment — Social Security, pensions, 401(k) withdrawals), sales tax, and estate/inheritance taxes. Many low-property-tax states have offsetting income or sales tax structures. Always evaluate the full picture.

Most friendly (lowest rates)

1 Hawaii
0.29%
2 Alabama
0.42%
3 Colorado
0.55%
4 Louisiana
0.56%
5 South Carolina
0.57%
6 District of Columbia
0.57%
7 Nevada
0.59%
8 West Virginia
0.59%
9 Arkansas
0.61%
10 Delaware
0.61%

Highest burden

1 New Jersey
2.47%
2 Illinois
2.23%
3 New Hampshire
2.18%
4 Connecticut
2.15%
5 Vermont
1.90%
6 Texas
1.80%
7 Wisconsin
1.76%
8 Nebraska
1.73%
9 New York
1.72%
10 Rhode Island
1.63%

Full ranking (all 51 jurisdictions)

Rank State Effective rate
1 Hawaii 0.29%
2 Alabama 0.42%
3 Colorado 0.55%
4 Louisiana 0.56%
5 South Carolina 0.57%
6 District of Columbia 0.57%
7 Nevada 0.59%
8 West Virginia 0.59%
9 Arkansas 0.61%
10 Delaware 0.61%
11 Wyoming 0.61%
12 Utah 0.63%
13 Arizona 0.66%
14 Idaho 0.67%
15 Tennessee 0.71%
16 California 0.74%
17 New Mexico 0.80%
18 Mississippi 0.81%
19 North Carolina 0.82%
20 Virginia 0.82%
21 Montana 0.83%
22 Indiana 0.85%
23 Kentucky 0.85%
24 Florida 0.89%
25 Oklahoma 0.90%
26 Georgia 0.92%
27 Oregon 0.93%
28 Washington 0.94%
29 North Dakota 0.98%
30 Missouri 1.01%
31 Maryland 1.09%
32 Minnesota 1.11%
33 Alaska 1.22%
34 Massachusetts 1.23%
35 South Dakota 1.31%
36 Maine 1.36%
37 Kansas 1.41%
38 Pennsylvania 1.49%
39 Michigan 1.54%
40 Ohio 1.56%
41 Iowa 1.57%
42 Rhode Island 1.63%
43 New York 1.72%
44 Nebraska 1.73%
45 Wisconsin 1.76%
46 Texas 1.80%
47 Vermont 1.90%
48 Connecticut 2.15%
49 New Hampshire 2.18%
50 Illinois 2.23%
51 New Jersey 2.47%
Illustrative effective property tax rates compiled from public data (Tax Foundation, US Census ACS). Refreshed annually. Actual rates vary by county.

What this ranking does — and doesn't — tell you

This page ranks states purely by median effective property tax rate. That's an honest, useful comparison — but it's only one slice of the retirement-tax picture. A complete retirement-friendly assessment also needs to factor:

For a fully informed retirement decision, run the property tax delta here, then layer state income tax, sales tax, and senior exemptions on top. A CPA or tax-aware financial planner can consolidate the picture.

Notes on retirement-friendly outliers

Why Florida looks better than its property tax suggests

Florida's property tax is roughly middle-of-pack, but it's consistently ranked one of the most retiree-friendly states because of (a) no state income tax, (b) Save Our Homes 3% cap on assessment growth, (c) stacked exemptions for seniors and disabled homeowners, and (d) generous homestead protections. The headline property tax rate understates the benefit.

Why Texas looks worse than its rate suggests for retirees

Texas has high property tax but no state income tax. For high-net-worth retirees with pension income, Roth conversions, or ongoing consulting income, Texas often nets out friendly despite the property tax burden. For modest-income retirees with low withdrawal rates, the property tax dominates and Texas is relatively unfriendly.

The "no income tax" cluster

Texas, Florida, Tennessee, Nevada, Washington, South Dakota, Wyoming, Alaska, and New Hampshire (mostly) have no broad-based personal income tax. They make up the revenue elsewhere — property tax (TX, NH), sales tax (TN, WA, NV), or natural resource severance (AK, WY). The right pick depends on whether your spending leans toward owned property, taxable goods, or neither.

Underrated retirement states by combined burden

States that consistently rank in the top tier across multiple total-tax-burden studies (Kiplinger, Tax Foundation, Bankrate) include: Wyoming, Florida, Tennessee, Nevada, South Dakota, Alabama, and Mississippi. None are uniformly perfect; each has tradeoffs.

Frequently asked questions

What's the most retirement-friendly state for property tax alone?

Hawaii by effective rate (~0.27%), but home values are high enough that the dollar bill is substantial. Alabama, Colorado, and Louisiana follow with low rates and lower home values, producing genuinely small annual tax bills.

What about senior-specific property tax exemptions?

Almost every state offers something — typically an additional exemption stacked on the base homestead, sometimes with income limits, sometimes available only to homeowners over 65. The most generous: Texas (additional $10,000 school exemption + freeze on school taxes after 65), New York (Enhanced STAR for seniors), and Florida ($50,000 additional exemption for low-income seniors).

Are there property tax deferrals available for retirees?

Several states allow qualifying seniors to defer all or part of property tax, with interest accruing as a lien repaid when the home sells (Oregon, California, Washington, Colorado, Idaho, Massachusetts, others). Useful for cash-poor / equity-rich retirees but turns property tax into a future liability against the estate.

Should I move just for property tax savings?

Rarely. The financial math has to clear two hurdles: (1) the annual savings × your remaining ownership years must exceed the ~7–10% transaction cost of selling and rebuying, and (2) the total tax picture (including income, sales, vehicle taxes) must also improve. Often it does — but check before assuming.

What about cost of living, not just taxes?

Tax is one slice of cost of living. Healthcare access, housing costs, utility costs, and proximity to family typically dominate retirement-quality decisions for most retirees. Tax savings should reinforce a relocation, not justify it on their own.