There is no state, county, or city in the U.S. where property taxes are completely abolished for everyone, as they fund essential local services like schools and police. However, some areas in Alaska, particularly in the unorganized borough, have no municipal property taxes, while others offer very low rates or generous exemptions.
Are there any states without property tax? Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries.
There are no U.S. states with zero property tax, but Hawaii, Alabama, Louisiana, and Delaware have some of the lowest rates, while some specific counties or towns within states (like parts of Alaska or certain Arizona cities) have very low or virtually no primary property tax, funded by other revenue, though you'll still find some form of property tax to fund local services. Internationally, countries like the UAE, Bahrain, and Monaco have no property tax on ownership, while others have very low rates.
These 6 States Might Eliminate Property Taxes
Property taxes apply to all land investments, regardless of whether you're living on the land, building on it, or making an income off of it. That means that if you own vacant land, you must pay property taxes on it although you may also be eligible for some rather decent deductions.
Yes, every U.S. state has property taxes, but they are primarily levied by local governments (cities, counties, school districts) rather than the state itself, funding essential local services like schools and roads. While no state is free from property taxes, rates and reliance on them vary significantly, with some states having low rates or offering generous exemptions for seniors, veterans, and others, often offsetting revenue with higher sales or other taxes.
Key takeaways. If you own real estate, you probably owe taxes based on the value of your property and where it's located. State and local governments charge property taxes to pay for road repairs, schools, the police, and other services.
While the goal is to ease the country's housing problem, property tax is a major source of income in many European countries. According to the European Commission, property tax as a share of GDP in the EU ranges from 0.3% in Czechia and Estonia to 3.7% in France in 2023. The EU average is 1.9%.
There are no U.S. states with zero property tax, but Hawaii, Alabama, Louisiana, and Delaware have some of the lowest rates, while some specific counties or towns within states (like parts of Alaska or certain Arizona cities) have very low or virtually no primary property tax, funded by other revenue, though you'll still find some form of property tax to fund local services. Internationally, countries like the UAE, Bahrain, and Monaco have no property tax on ownership, while others have very low rates.
Foreclosure is a real risk: If you don't take care of unpaid property taxes, your home can be sold at a tax sale (either the lien or the deed) and you could lose ownership, even if you have a mortgage.
No U.S. state offers a complete absence of property tax for all seniors, but many provide significant exemptions, deferrals, or credits, with states like Alaska, Florida, Hawaii, Louisiana, and Washington offering substantial relief, while others like South Dakota allow deferral until sale, and states like Colorado, Texas, and New York offer significant reductions on assessed value for qualifying seniors.
On July 4, 2025, President Trump announced his desire to abolish property taxes, framing it as a move to promote “real freedom for American homeowners”.
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
Unfortunately, the reality is that there's no state in the U.S. where homeowners live completely property-tax free. Every state has some form of property tax, but there are states with significantly lower rates and generous exemptions for low-income households, veterans, and elderly Americans.
What are the pros and cons of living in a state with no property tax? Low or minimal property taxes can make homeownership more affordable and appealing. However, residents might face higher costs in other areas—such as sales taxes, vehicle taxes, or public service fees.
Nine U.S. states levy no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Sales, property, and excise taxes can be higher in states with no income tax as a trade-off to fund important government services.