For first-time buyers and budget-conscious households, the 2026 housing market presents a significant challenge.
Last month, the U.S. Bureau of Labor Statistics reported an annual inflation rate of 3.8%, a surge that has trickled down to every facet of daily life, including groceries, healthcare, utilities, and — yes — even the housing market.
Currently, median home prices for new single-family homes are hovering around $412,000, according to Property Shark, with annual property tax bills hovering around $3,119 (though property taxes vary by locality).
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But a handful of states tell a different story. In these locations, cost-of-living indices mostly remain below the national average, and median property tax bills are often under $1,500.
Are these lower costs enough to outpace inflation? To find out, we’ve ranked the top ten states with the lowest property tax bills in the U.S. by their affordability to see if 2026 is your year for a move.
States with the lowest property tax bills
Kiplinger used the latest data from Property Shark, sourced from the U.S. Census Bureau, to determine the ten lowest median property tax bills in the nation.
Then, median home values and household incomes were utilized to calculate the home price-to-income ratio for each state. This data point shows the average annual salary required to purchase a home in each state. For example, a ratio of 2.73 means that the average home price is roughly 2.7 times the state’s average annual salary.
For our cost-of-living (COL) index, we utilized regional price parities (RFPs) from the U.S. Bureau of Economic Analysis (BEA). These figures represent a weighted average of prices for essential goods and services, including food, transportation, and healthcare.
On the BEA scale, 100 represents the national average. A score of 88, for instance, means the state is 12% cheaper than the national average, while a score of 102 indicates it is 2% more expensive.
Cost of living in states with low property taxes
(Image credit: Getty Images)
The ranking below shows typical home values vs. average salaries in the states listed (as reflected in the home price-to-income ratio), along with daily living expenses such as grocery bills and local tax burdens.
While Kiplinger considered some qualitative factors, like job opportunities and weather, it’s important to note that healthcare accessibility, education outcomes, political climate, and other considerations can influence reasons to live or move in a specific state and affect the amount needed for “affordable” living in that state.
Each individual’s needs differ, so consult a tax professional or financial planner when necessary.
1. West Virginia: Low entry barrier for homeownership
Home price-to-income ratio: 2.73
Median property tax bill: $865
Cost-of-living (COL) index: 89.5
With a home price-to-income ratio of 2.73 according to Property Shark, West Virginia is the most affordable state on our list for homebuyers. Plus, a median property tax bill of $865 and a COL index 10.5 points below the national average secure the Mountain State’s top spot.
- The trade-off: Job variety can be limited; West Virginia also has a relatively high state and local sales tax (which can reach 7% in some areas) and taxes most kinds of retirement benefits, but not Social Security benefits.
- Should you move? Remote workers and first-time buyers looking for maximum square footage for their dollar could win out. But if you need more amenities in less populated areas, you might reconsider West Virginia.
Home price-to-income ratio: 3.01
Median property tax bill: $1,215
Cost-of-living (COL) index: 87
- The trade-off: The job market in Mississippi has been historically slower-paced, though metropolitan areas may sing a different tune. Still, Mississippi has one of the nation’s highest grocery taxes at a whopping 5%. Home insurance premiums can also be high compared to the national rate, according to the latest data from Bankrate.
- Should you move? Professionals in agriculture or manufacturing who value a low-cost, warmer climate might consider moving to Mississippi. Also, those who want to live on the cheaper side of things may consider the Magnolia State home.
See also: 10 Tax-Friendly States for Retirees in 2026
3. Arkansas: Very low property taxes and costs on daily essentials
Home price-to-income ratio: 3.09
Median property tax bill: $1,040
Cost-of-living (COL) index: 86.9
- The trade-off: Arkansas has some extreme weather. Capital gains are taxed as ordinary income (with a 50% exemption on net long-term investments), and high state and local sales taxes are used to offset the low property taxes.
- Should you move? You might relocate to Arkansas if you’re an outdoor enthusiast looking to take advantage of the state’s many mountains, lakes, and rivers (weather permitting). On the other hand, corporate professionals might settle near growing hubs like Bentonville or Fayetteville.
Home price-to-income ratio: 3.07
Median property tax bill: $1,599
Cost-of-living (COL) index: 87.8
- The trade-off: Property taxes are the highest in the states on this list, with a median bill of $1,599. Residents must also contend with “Tornado Alley” weather and a regressive tax system that relies heavily on sales tax.
- Should you move? Oklahoma typically offers a highly favorable business tax environment, which makes it a more attractive place to live for entrepreneurs and business owners. But once you’re retired, some of your income may still be taxed, like distributions from your pension, 401(k), and IRA.
5. Alabama: The ‘middle ground’ of low taxes and cost of living
Home price-to-income ratio: 3.28
Median property tax bill: $788
Cost-of-living (COL) index: 88.8
- The trade-off: Alabama summers are hot and humid. Combined state and local sales tax can reach 9.46%, according to the Tax Foundation; Alabama is one of the few states to still tax groceries, too.
- Should you move? Recent college grads, particularly in the growing tech and aerospace industries, might call the Cotton State “home.” Although retirement income is state-taxed, certain exemptions and no state taxes on Social Security could make retirement more affordable.
6. Kentucky: Solid middle ground for overall affordability
Home price-to-income ratio: 3.23
Median property tax bill: $1,544
Cost-of-living (COL) index: 90.2
- The trade-off: Even though the median property tax bill of $1,544 is higher than that of many states listed here, it isn’t the overall highest. However, if you plan on retiring in Kentucky, the Bluegrass State still taxes some retirement income (though it offers significant exemptions) and is one of the few states with a death tax.
- Should you move? Those seeking a blend of cultural hubs (like Louisville or Lexington) and affordable rural living could choose to live in Kentucky. But if you love the fast-paced energy of a city with bustling nightlife, you might look elsewhere.
7. Louisiana: Affordable living and home prices
Home price-to-income ratio: 3.56
Median property tax bill: $1,180
Cost-of-living (COL) index: 88.2
A 3.56 home price-to-income ratio puts Louisiana in the bottom half of the list. Yet while home prices are higher relative to income, the $1,180 median property tax bill remains a major draw for new residents. Plus, the COL index is still 11.8% lower than the national average, per the BEA.
- The trade-off: Louisiana has the highest sales tax in the U.S. (exceeding 11% in some areas). Home insurance premiums are also rising due to the state’s location on the Gulf Coast, and summers are humid.
- Should you move? Budget-savvy buyers who prioritize lifestyle, arts, and food culture might make the move to the Pelican State. Once you retire, you could also find enjoyment in escaping the harsh winters of the north.
8. South Carolina: Popular destination with some affordability
Home price-to-income ratio: 3.74
Median property tax bill: $1,251
Cost-of-living (COL) index: 93.7
- The trade-off: Rapid growth in recent years has put strain on the state’s infrastructure and caused traffic congestion in popular areas like Charleston. While primary residences are taxed at a relatively low rate, vacation homes are taxed at a higher rate.
- Should you move? South Carolina remains a top destination for families and retirees who want coastal access without Florida’s higher costs (which are above the national average). The state also frequently ranks as one of the best for military retirees due to veteran benefits.
See also: 10 Cheapest Places to Live in South Carolina
9. Tennessee: Can be affordable despite high growth
Home price-to-income ratio: 4.12
Median property tax bill: $1,442
Cost-of-living (COL) index: 91.9
- The trade-off: High sales taxes and vehicle registration fees can offset Tennessee’s “no state income tax” status, and a competitive housing market is pricing some folks out of popular places like Nashville.
- Should you move? Professionals and families who can bring an out-of-state salary to a high-growth market might benefit from a move. And once you have a home, retirees could prosper with no state taxes on retirement income.
See also: 10 Cheapest Places to Live in Tennessee
10. Alaska: High cost of living and less affordable
Home price-to-income ratio: 3.80
Median property tax bill: $738
Cost-of-living (COL) index: 102.4
- The trade-off: While Alaska famously boasts no income tax, fluctuating local taxes require careful planning (for instance, some areas have no property tax, while the median bill is closer to $4,113 in areas that do). The costs of daily essentials are high.
- Should you move? Self-reliant individuals and high-earners in energy or maritime might relocate to Alaska to maximize their space. But if you like city conveniences, the move may not be for you.
Should you move to a state with low property taxes?
You should also weigh other quantitative factors — like COL indices — against qualitative ones, like proximity to family or career opportunities.
Ultimately, the most “affordable” move is one where your income stays comfortably ahead of both the tax collector and grocery bill. Choose wisely.
