Five states charge no property tax at all
Alaska, Delaware, Montana, New Hampshire, and Oregon do not levy a statewide property tax. This means you will not owe property tax to the state government on land or buildings you own in those states. However, local governments in these states may still charge property tax, and some do — so the absence of state tax does not always mean zero property tax.
The reason these five states avoid property tax varies. Alaska funds itself largely through oil revenue and does not need the tax. Delaware, New Hampshire, and Montana chose not to implement it historically and have kept that policy. Oregon abolished statewide property tax in 1997 but allows counties to impose it, and most do.
If you own property in one of these states, you still owe local property tax in most cases. The difference is that you will not receive a separate bill from the state. Your local county or municipality handles the tax directly.
Key Takeaways
- Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide property tax, but local governments in these states often charge property tax anyway.
- Alaska funds state operations through oil revenue rather than property tax, while the other four states chose not to implement the tax historically.
- Even in states without property tax, you may still owe local property tax to your county or city depending on where your property sits.
- Property tax rates and what they fund vary widely by county and municipality, even within states that have no state-level property tax.
How local property tax works in states without state tax
In Alaska, most areas do not charge local property tax either, making it one of the few places in the country where property owners may owe little to no property tax at all. However, some municipalities in Alaska do impose local property tax, so you need to check your specific city or borough.
Delaware has no state property tax, but New Castle County and Sussex County both charge local property tax. Kent County does not. The rates and what they fund differ by county, so your bill depends on which county your property is in.
Montana abolished its statewide property tax in 1981 but allows counties to impose it. Most Montana counties do charge local property tax. New Hampshire has no state property tax but allows towns to charge it, and nearly all New Hampshire towns do — property tax is a major funding source for schools there.
Oregon counties can impose property tax even though the state does not. Most Oregon counties exercise this power. The tax rate varies significantly by county and by what local services need funding.
States that do charge property tax
The other 45 states all charge statewide property tax. The rates range from less than 0.3 percent of home value per year in states like Hawaii and Louisiana to over 2 percent in states like New Jersey and Illinois. The money funds schools, roads, emergency services, and local government operations.
Even within a state that charges property tax, the rate you pay depends on your county and municipality. A home worth $300,000 might owe $2,000 per year in one county and $6,000 in another, even in the same state. This is because local governments set their own rates based on what they need to fund.
Property tax is reassessed periodically — usually every one to five years depending on the state — so your bill can change even if you do not move or make improvements to your home.
What property tax funds in your area
Property tax money goes to schools, police and fire departments, road maintenance, libraries, parks, and county administration. In most states, schools receive the largest share — often 40 to 60 percent of property tax revenue.
In states without statewide property tax, local governments fund these services through other means. Alaska uses oil revenue. New Hampshire relies heavily on sales tax and business taxes. Delaware uses corporate income tax. Montana and Oregon use income tax and sales tax to replace property tax revenue.
This means that living in a state without property tax does not necessarily mean you pay less in total taxes. You may pay more in income tax or sales tax instead. The total tax burden depends on how much you earn, how much you spend, and where you live within the state.
How to find out what you owe in your county
Contact your county assessor's office or tax assessor. They maintain records of all properties in the county and can tell you whether property tax applies to your address. You can usually find their contact information on your county government website.
If you own property, you will receive a property tax bill in the mail if tax is owed. The bill shows the assessed value of your property, the tax rate, and the amount due. If you do not receive a bill, property tax likely does not explore in your area.
If you are thinking about buying property in one of these five states, ask the real estate agent or title company whether local property tax applies to the specific address. They can check county records and tell you what to expect.
Frequently Asked Questions
Do I pay property tax if I own land in Alaska?
Most of Alaska does not charge property tax at all. However, some municipalities do impose it. Check with your city or borough assessor to find out whether your specific property is subject to local property tax.
Is New Hampshire really a no-property-tax state?
New Hampshire has no statewide property tax, but nearly every town in the state charges local property tax. Most New Hampshire homeowners do pay property tax to their town, even though the state does not impose it.
Can I avoid property tax by moving to one of these states?
Moving to a state without statewide property tax may lower your property tax bill, but you will likely pay more in income tax or sales tax instead. The total tax burden depends on your income, spending, and the specific county where you live.
What happens if I own property in a state with property tax but move away?
You still owe property tax on property you own, even if you move to another state. The tax follows the property, not the owner. You will continue to receive bills from the county where the property is located.
How often does my property tax bill change?
Property tax is reassessed on a schedule set by your state and county — typically every one to five years. Your bill can change when the property is reassessed, when tax rates change, or when you make improvements to the property.