Arizona has the fourth-lowest property tax rate in the United States, according to a recent report from WalletHub.

The finance site looked at real estate tax rates in the 50 states and Washington, D.C., as well as the annual cost for homeowners in each state, to determine which places offer the least expensive property taxes.

Arizona ranked No. 4, with an effective real estate tax rate of 0.48%. That equates to about $1,585 annually for a home valued at $332,700 (the U.S. median home value in 2024).

Of course, Arizona’s median home value is higher, at $394,500, so that’s a conservative estimate for annual Arizona property taxes. Based on the state median value, Arizona homeowners would be more likely to pay around $1,879 per year.

Still, that’s far cheaper than more than half of the other states in the country. In New Jersey, where the tax rate is 2.11%, annual taxes on a median-valued home would equal about $9,590. That’s the highest annual amount (and highest tax rate) of any state.

Real Estate Property Tax Rates by State (via WalletHub)

The lowest tax rate is in Hawaii (0.27%), although given the high median home value of $839,100, annual taxes would exceed $2,200. That’s why the crown for the cheapest annual taxes goes to Alabama, where the tax rate is 0.38%, and the median home value is $209,900.

“Some states charge no property taxes at all, while others charge an arm and a leg,” said WalletHub Analyst Chip Lupo. “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.”