Best States to Buy a Home in 2025 (Tax Comparison)
Updated: October 2025 • 8 min read
Best states to buy a home 2025 — Looking to buy a house this year? This guide ranks the top U.S. states by affordability, property taxes, and market stability. Use our free Mortgage Calculator to estimate payments and compare taxes by state.
Why 2025 is a key year for home buyers
Mortgage rates are stabilizing after years of volatility, and several states have adjusted property tax policies. Combined with income trends and new housing incentives, 2025 presents a strategic window for first-time and relocating buyers.
Top 10 Best States to Buy a Home in 2025
| State | Median Home Price (USD) | Property Tax Rate | Affordability Rank |
|---|---|---|---|
| Florida | $395,000 | 0.83% | 1 |
| Texas | $340,000 | 1.68% | 2 |
| North Carolina | $310,000 | 0.85% | 3 |
| Arizona | $370,000 | 0.63% | 4 |
| Georgia | $315,000 | 0.81% | 5 |
| Tennessee | $295,000 | 0.66% | 6 |
| Ohio | $250,000 | 1.52% | 7 |
| South Carolina | $305,000 | 0.57% | 8 |
| Idaho | $420,000 | 0.69% | 9 |
| Indiana | $255,000 | 0.85% | 10 |
These rankings consider 2025 market data from Zillow, Redfin, and U.S. Census Bureau. States with low property taxes and moderate home prices consistently offer better long-term value for new buyers.
Property Tax Comparison — State Highlights
- Florida: No state income tax and low property taxes make it ideal for retirees and investors.
- Texas: Fast-growing economy but higher tax rate; offset by lower overall living costs.
- Tennessee: Top-tier affordability and low taxes — strong option for remote workers.
- Arizona: Great weather and steady appreciation; ideal for snowbirds.
How to use our calculator to compare states
- Go to the Mortgage Calculator.
- Select your target state to auto-load property tax rates.
- Adjust loan terms (5–30 years) and see total cost, PMI, and HOA.
Tips before buying a home in 2025
- Check local insurance costs — some coastal states have high premiums.
- Compare school districts and job growth — both affect resale value.
- Run multiple mortgage scenarios (5, 15, 30 years) to gauge savings.
FAQ — Home Buying 2025
What is the best state to buy a house in 2025?
Florida, Texas, and North Carolina top the list for affordability, low taxes, and strong job growth.
Which states have no property tax?
All U.S. states levy property taxes, but Hawaii (0.29%) and Alabama (0.39%) have the lowest rates.
Should I buy or wait for rates to drop?
Experts expect moderate declines in 2026, but waiting may cost you if home prices rise faster than rates fall.
Additional resources
– How Much House Can I Afford?
– Closing Costs by State
– CFPB Homeownership Guide