Cities With the Lowest Taxes 2026 — Property Tax Rankings

Not all cities tax residents equally. Per-capita property tax burdens vary by 50x or more across U.S. cities — from under $10 per resident in some Sun Belt cities to over $2,000 in high-cost markets. This analysis ranks 800+ cities by property tax per capita using U.S. Census Bureau data.

20 Cities With the Lowest Property Taxes Per Capita

Cities at the bottom of the property tax ranking often have structural reasons for their low rates. Texas and Arizona cities frequently rely on sales taxes instead of property taxes. Some cities with large commercial or industrial tax bases levy relatively little from residents because businesses bear a disproportionate share.

#	City	State	Population	Property Tax/Capita
1	New York	NY	8,622,467	$5
2	Tucson	AZ	541,033	$5
3	Phoenix	AZ	1,609,456	$7
4	Cedar Rapids	IA	136,929	$8
5	Irvine	CA	304,527	$8
6	Dallas	TX	1,300,642	$9
7	San Antonio	TX	1,445,662	$9
8	Jacksonville	FL	950,203	$10
9	Columbus	OH	902,449	$10
10	San Mateo	CA	104,165	$10
11	Vacaville	CA	101,631	$10
12	Memphis	TN	630,027	$10
13	South Bend	IN	103,084	$10
14	Providence	RI	189,715	$12
15	Kirkland	WA	92,015	$12
16	Chesapeake	VA	249,377	$12
17	Temple	TX	83,473	$13
18	Sandy Springs	GA	107,221	$13
19	Iowa City	IA	74,878	$14
20	Concord	NC	105,335	$15

Note: This ranks cities by property tax revenue per resident. Cities with very low figures often rely on other revenue sources. For a complete tax picture, visit each city's property tax ranking page.

The States With the Most Low-Tax Cities

Low-property-tax cities cluster in states with constitutional or statutory restrictions on local property taxes:

CA — 3 city/cities in the lowest-tax list
TX — 3 city/cities in the lowest-tax list
AZ — 2 city/cities in the lowest-tax list
IA — 2 city/cities in the lowest-tax list
NY — 1 city/cities in the lowest-tax list

Texas stands out because state law caps city property taxes and requires supermajority voter approval for rate increases above a revenue cap. As a result, Texas cities have some of the lowest property tax per-capita figures in the nation — though they compensate with high sales taxes and fees.

Cities With the Highest Property Taxes Per Capita

For context, here are the cities at the opposite end — where residents pay the most in property taxes per capita:

#	City	State	Property Tax/Capita
1	North Port	FL	$2,118
2	Greenville	SC	$1,988
3	Oshkosh	WI	$1,987
4	Seattle	WA	$1,831
5	Madera	CA	$1,746
6	Orange	CA	$1,719
7	Appleton	WI	$1,550
8	Bozeman	MT	$1,537
9	Sacramento	CA	$1,465
10	Bellevue	WA	$1,441

For the full list see cities with the highest property taxes.

Low Taxes ≠ Low Cost of Government

A common misconception: low property taxes mean residents are getting a deal. In reality, cities with low property taxes often:

Charge higher fees for services (water, trash, recreation)
Levy higher sales taxes that affect all purchases
Rely on state aid that can be cut without local control
Offer fewer services (no public transit, limited parks, etc.)
Carry more debt, pushing costs into the future

The total fiscal picture — including debt, pension obligations, and service quality — tells a more complete story than a single tax metric. See our fiscal health score rankings for a composite view.

Frequently Asked Questions

Which states have no city property tax?

Several states limit or prohibit local property taxes for city operations. In Alabama, cities cannot levy property taxes on owner-occupied homes at certain levels. Some Texas cities have low effective rates due to high exemptions. Hawaii consolidates property tax at the county level. Florida's homestead exemption significantly reduces effective tax rates.

Why do some large cities have very low property taxes?

Large cities may show low property tax per capita when they rely heavily on other revenue sources — sales taxes (common in Texas and Arizona), income taxes (New York City, Philadelphia), or utility revenues. The raw property tax figure can also be low if the state exempts large portions of property value from taxation.

Is lower property tax always better for residents?

Not necessarily. Cities with very low property taxes often substitute other revenue sources — higher sales taxes (which are regressive), fees for services, or cuts to public services. The total tax burden and quality of services matter more than any single tax rate.

What other taxes do cities collect beyond property taxes?

Depending on state authorization, cities may collect sales taxes, income taxes, utility taxes, hotel/motel taxes (bed tax), restaurant taxes, payroll taxes, and vehicle registration fees. Cities in states without a city property tax typically rely on these alternatives.

About This Data

Property tax data is from the U.S. Census Bureau Annual Survey of State and Local Government Finances (2023). Per-capita figures use Census population estimates. Data covers cities with 50,000+ residents. These figures represent city government property tax collections only and do not include county, school district, or special district levies. See our methodology.