Tennessee homeowners have one of the lowest typical property tax bills in the U. S., with the state ranking seventh in a fresh 50-state affordability analysis.

The typical annual real estate tax bill for an owner-occupied home in Tennessee is $1,488, well under the national median of $3,211 in the latest 2024 one-year Census data.

Data experts at playcasino.com ranked all 50 states by median annual real estate taxes paid, then compared each bill with median home values and household incomes to show where low tax bills sit alongside broader housing affordability.

Tennessee’s median owner-occupied home value was $332,600, giving the state an effective property tax rate of 0.45%. Its home price-to-income ratio was 4.62, meaning the median home value is about 4.6 times the state’s median household income.

That puts Tennessee in the top 10 for lowest dollar property tax bills, but it also shows why buyers in Nashville, Knoxville, Chattanooga and Memphis still need to check the full cost of owning a home before moving.

The ranking is led by the typical annual bill, with the effective tax rate calculated as the median tax bill divided by the state median owner-occupied home value. The home price-to-income ratio shows how many years of median household income would equal the median home value.

• West Virginia: median property tax bill $881, median home value $170,800, effective rate 0.52%, home price-to-income ratio 2.81
• Alabama: median property tax bill $890, median home value $233,300, effective rate 0.38%, home price-to-income ratio 3.50
• Arkansas: median property tax bill $1,113, median home value $215,600, effective rate 0.52%, home price-to-income ratio 3.47
• Louisiana: median property tax bill $1,187, median home value $223,200, effective rate 0.53%, home price-to-income ratio 3.66
• Mississippi: median property tax bill $1,221, median home value $186,500, effective rate 0.65%, home price-to-income ratio 3.15
• South Carolina: median property tax bill $1,337, median home value $299,500, effective rate 0.45%, home price-to-income ratio 4.14
• Tennessee: median property tax bill $1,488, median home value $332,600, effective rate 0.45%, home price-to-income ratio 4.62
• Kentucky: median property tax bill $1,611, median home value $226,000, effective rate 0.71%, home price-to-income ratio 3.50
• Oklahoma: median property tax bill $1,672, median home value $222,100, effective rate 0.75%, home price-to-income ratio 3.36
• Delaware: median property tax bill $1,750, median home value $371,600, effective rate 0.47%, home price-to-income ratio 4.25

West Virginia takes the top spot with a typical bill of $881 and the lowest home price-to-income ratio in the top 10. Alabama is only slightly higher at $890 and has the lowest effective property tax rate among the 10 states at 0.38%.

Tennessee sits between South Carolina and Kentucky in the ranking. Its 0.45% effective rate matches South Carolina’s, but Tennessee’s median home value is higher than every state above it except South Carolina, which pushes its affordability ratio up.

The figures also show why low property tax rates can be misleading. Hawaii has an effective rate of just 0.27%, the lowest in the country by this calculation, but its $875,900 median home value leaves the typical annual tax bill at $2,385.

Colorado and Utah tell a similar story. Both have effective rates below 0.50%, but higher home values push typical annual bills to $2,828 in Colorado and $2,648 in Utah.

Because Tennessee combines a low rate with rising interest in major metro housing markets, buyers can be caught out if they only compare rates. A data specialist at playcasino.com said in the playcasino.com analysis: “A low property tax rate can look like an easy win, but homeowners pay a dollar bill, not a percentage. Tennessee ranks strongly on the annual bill, but buyers still need to check the county, city, school district, exemptions, insurance costs and reassessment rules before deciding a home is affordable. ”

The figures are state medians, so individual homeowners can pay far more or far less depending on local assessment rules, exemptions and the value of their property. Tennessee buyers should also remember that tax bills can change after a purchase, reassessment or local rate decision.

playcasino.com analysts ranked the 50 states by 2024 median real estate taxes paid for owner-occupied homes. Effective rates were calculated by dividing median real estate taxes paid by median owner-occupied home value, and home price-to-income ratios were calculated by dividing median owner-occupied home value by median household income. Washington, D. C. and Puerto Rico were excluded from the state ranking.

Sources: U. S. Census Bureau 2024 ACS 1-year tables B25103, B25077 and B19013, checked July 2, 2026. Bureau of Economic Analysis regional price parity release, current release February 19, 2026, checked July 2, 2026. Tax Foundation Property Taxes by State and County 2026, checked July 2, 2026.