Idaho and Utah rank among the states with the lowest property tax burdens in the country and is tied for the lowest vehicle property tax rate, according to a new analysis from WalletHub.
The report places Idaho 7th and Utah 10th overall for lowest real-estate property tax rates. Idaho’s effective real-estate tax rate is 0.49%, equating to $1,620 annually, while Utah’s effective real-estate tax rate is 0.52%, translating to about $1,717 annually on a home valued at $332,700 — the current U.S. median home value.
On a home priced at Idaho’s median value of $418,600, the annual property bill is approximately $2,038. In Utah, the median value of a home is $489,400, translating to an annual property tax at approximately $2,525.
Utah and Idaho also tie for first nationally for vehicle property taxes, with an effective rate of 0.00%. That means no annual property tax on a $29,100 vehicle — the value WalletHub used based on the 2025 Toyota Camry LE, the nation’s top-selling car.
How Utah Compares to Neighboring States
Among Utah’s geographic neighbors:
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Nevada ranks 3rd lowest for real-estate taxes at 0.47%.
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Arizona and Colorado tie for 4th at 0.48%.
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Idaho ranks 7th at 0.49%.
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Wyoming ranks 14th at 0.57%.
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Montana ranks 19th at 0.72%.
When it comes to vehicle property taxes, Idaho joins Utah at 0.00%, while rates climb sharply elsewhere — reaching 2.12% in Nevada and 1.80% in Wyoming.
Nationally, the average U.S. household pays $3,119 per year in property taxes, according to U.S. Census Bureau data cited in the study. In the 26 states that levy vehicle property taxes, residents pay an average of $499 annually.
Property Taxes Often Overlooked
Chip Lupo, a WalletHub analyst, said property taxes can vary dramatically depending on where someone lives.
“Some states charge no property taxes at all, while others charge an arm and a leg. Americans who are considering moving and want to maximize the amount of money they take home should take into account property tax rates, in addition to other financial factors like the overall cost of living, when deciding on a city,” Lupo said.
Experts say many Americans do not fully consider property taxes when relocating.
Matthew T. Phillips, a professor at Wake Forest University, said property taxes are “easy to overlook” because they are often included in monthly mortgage payments.
“That means that property taxes usually aren’t part of the equation for people who are moving. But, just like we compare cost of living between regions, we should include property taxes,” Phillips said. He noted that homeowners moving from the highest to lowest property tax states could save more than $6,000 annually.
Dr. Mitchell Franklin, a professor at Le Moyne College, said property taxes represent “a recurring cost that can significantly affect financial planning, savings capacity, and long-term affordability.”
“Responsible housing decisions must therefore account not only for mortgage payments but also for the ongoing tax burden,” Franklin said.
Policy Debate Continues
Experts remain divided on whether local governments rely too heavily on property taxes.
Phillips said property taxes are attractive to local governments because they are stable and relatively simple to administer, while alternatives like local income taxes are complex and sales taxes can be regressive.
Franklin argued that reliance on property taxes in many states is “excessive and unsustainable,” urging governments to focus on efficiency and cost reductions instead of increasing tax burdens.
How the Rankings Were Calculated
WalletHub used U.S. Census Bureau data to determine effective real-estate property tax rates by dividing each state’s median real-estate tax payment by its median home price.
To calculate vehicle property tax rates, the study analyzed data from cities and counties representing at least 50% of each state’s population, applying weighted averages. The analysis assumed ownership of a 2025 Toyota Camry LE valued at $29,100.
The full report is available at wallethub.com.