Five states collect no property tax at all
Alaska, Delaware, Montana, New Hampshire, and Oregon do not impose a statewide property tax. That means you will not receive a property tax bill from the state government for owning land or a home in those states. However, this does not mean property owners pay nothing — local governments in these states fund schools and services through other revenue sources, and some charge local property taxes despite the state having none.
The absence of a statewide property tax does not mean lower overall taxes. Alaska has no income tax or sales tax but funds government through oil revenue and corporate taxes. New Hampshire taxes interest and dividend income but not wages. Delaware has no sales tax but collects income tax. Montana has no sales tax but collects income tax. Oregon has no sales tax but collects income tax. Each state compensates for missing property tax revenue in a different way.
If you own property in one of these states, you still need to understand what your local government charges. A home in Anchorage, Alaska may face a municipal property tax even though Alaska has no state property tax. The same applies to Portland, Oregon and other cities in these five states.
Key Takeaways
- Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide property tax, but local governments in these states may still charge property taxes on homes and land.
- States without property tax fund government services through income tax, sales tax, or other revenue sources — property tax elimination does not mean lower total taxes.
- You must check your specific city or county to learn whether local property tax applies, because statewide absence does not prevent local assessment.
- Moving to a no-property-tax state does not reduce your tax burden unless you also avoid the state's income tax, sales tax, or other revenue sources.
Local property taxes still apply in most cities within these states
Alaska, Delaware, Montana, New Hampshire, and Oregon prohibit statewide property tax, but cities and counties within those states retain the power to impose local property taxes. In practice, most populated areas in these states do charge property tax at the local level.
Anchorage and Juneau in Alaska both assess property tax. Wilmington and other Delaware cities charge property tax. Billings and Missoula in Montana assess property tax on homes. Portsmouth and Manchester in New Hampshire charge property tax. Portland, Eugene, and Salem in Oregon all assess property tax. The statewide ban does not prevent local governments from funding schools and services through property assessment.
The practical effect is that a homeowner in Portland, Oregon may pay local property tax even though Oregon has no state property tax. The rate and assessment method vary by city and county. You need to contact your local assessor's office or county tax collector to learn the actual rate you will pay.
How these states fund government without property tax
States without property tax must raise revenue through other sources. The methods differ significantly, which affects your overall tax burden if you move to one of these states.
Alaska collects no income tax, no sales tax, and no property tax. The state funds government primarily through oil revenue and corporate taxes. This makes Alaska unique among the five — residents face the lowest total state tax burden, though local property taxes still apply in most communities.
Delaware collects income tax on wages and salaries, plus a corporate income tax. It has no sales tax. Property tax is prohibited statewide, but local governments charge property tax in most areas. The combination of income tax and local property tax means Delaware residents do not necessarily pay less in total taxes than residents of states with property tax.
Montana collects income tax and has no sales tax. Property tax is prohibited statewide, but local governments charge property tax. Montana residents pay income tax and local property tax but avoid state sales tax.
New Hampshire collects income tax on interest and dividend income only — not on wages or salaries. It has no sales tax. Property tax is prohibited statewide, but local governments charge property tax. New Hampshire residents who earn wages pay no state income tax but do pay local property tax.
Oregon collects income tax and has no sales tax. Property tax is prohibited statewide, but local governments charge property tax. Oregon residents pay income tax and local property tax but avoid state sales tax.
How property tax rates compare across these five states
Local property tax rates in these five states vary widely by city and county. Because there is no statewide property tax, rates are set entirely by local governments and can differ dramatically within the same state.
| State | Statewide Property Tax | Local Property Tax | Other Major Taxes |
|---|---|---|---|
| Alaska | None | Varies by city and borough | No income tax, no sales tax |
| Delaware | None | Varies by county and city | Income tax, no sales tax |
| Montana | None | Varies by county and city | Income tax, no sales tax |
| New Hampshire | None | Varies by town and county | Income tax on interest/dividends only, no sales tax |
| Oregon | None | Varies by county and city | Income tax, no sales tax |
To find the actual property tax rate for a specific home, contact the county assessor's office or tax collector in the city where the property is located. Rates can range from less than 0.5% of home value to over 1.5% depending on the locality.
What happens if you own property in a no-property-tax state
If you own a home in Alaska, Delaware, Montana, New Hampshire, or Oregon, you will not receive a bill from the state government for property tax. However, you may receive a bill from your local government if your city or county assesses property tax.
You are responsible for learning whether your specific address is subject to local property tax. The easiest way is to contact your county assessor's office or visit the county tax assessor website. Provide your address and ask for the current property tax rate and estimated annual bill. Many county assessor offices allow you to look up property tax information online using your address.
If you are buying property in one of these states, ask the real estate agent or title company about local property tax before closing. The property tax obligation does not disappear because the state has no statewide property tax — it simply shifts to the local level in most cases.
Frequently Asked Questions
Do I pay zero property tax if I buy a home in Alaska?
Not necessarily. Alaska has no statewide property tax, but Anchorage, Juneau, and other cities assess local property tax. You must check with your specific city or borough to learn the rate. Some rural areas in Alaska may have no local property tax, but most populated areas do.
Is New Hampshire really a no-tax state?
New Hampshire has no income tax on wages, which is unusual. However, it does tax interest and dividend income, and most towns and cities charge property tax. New Hampshire is not a no-tax state overall — it simply avoids taxing wages.
Can I avoid property tax by moving to one of these five states?
Not in most cases. Four of the five states (Delaware, Montana, New Hampshire, and Oregon) collect income tax. Alaska does not, but most Alaskan cities charge local property tax. You would need to live in a rural area of Alaska with no local property tax to avoid property tax entirely, and you would still pay other state and local taxes.
What if my city in one of these states does charge property tax?
Contact your county assessor's office to learn the rate, assessment method, and payment schedule. Property tax bills are usually sent annually or semi-annually. You can appeal the assessed value of your property if you believe it is too high — each county has a formal appeal process.
Are property values higher or lower in states without property tax?
Property values depend on many factors: location, school quality, job market, and housing supply. The absence of statewide property tax does not automatically make homes cheaper. In fact, some areas in these states have high property values because of other desirable factors, and local property tax rates can be high enough to offset the lack of state property tax.