Ranking the Lowest Property Tax States
How much are you paying in property taxes? Depending on where you live, your property taxes may be modest, or they may actually be higher than your mortgage payment. If you're feeling the property tax pinch, maybe it's time to seek a little tax relief by moving to a less costly region. This list of the 15 states with the lowest effective property tax rates may inspire you to pack your bags and head south—or to the islands.
The Volunteer State ranks 15th in the nation for the lowest property tax, with an effective tax rate of 0.71 percent. And with median home values hovering around $167,000, it's not unusual for property taxes to be as low as $100 per month.
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Idaho may be known for its potato crops, but it’s also a great place to be a homeowner, with an effective property tax rate of 0.69 percent. Property values are also lower than average, with the median cost of a home hovering around $212,000. That means residents who own average-priced houses will pay just $1,456 a year in property tax.
With an effective property tax rate of 0.66 percent, Arizona takes the 13th spot in the national ranking. Average property values are a little lower than the national average at $225,500, making the average property tax payment $1,499 per year. Arizona is a perfect spot for those who love warm weather because it ranks tenth in the country in terms of average annual temperatures.
Utah, 12th on our list, has an effective property tax rate of only 0.63 percent. But that's not the only thing this beautiful state has going for it. With five national parks, major ski resorts, and the cultural hub of Salt Lake City, this state might very well make your short list of relocation destinations.
Arkansas lands just outside our top 10, with an effective property tax rate of 0.62 percent. The average cost of a home in Arkansas is low, too; the median home value comes in at just under $128,000. At that rate, property taxes on a median-priced home amount to about $798 annually, making Arkansas’s cost of living one of the more attractive in the country.
With property taxes running just over $1,300 a year on the average $220,500 house, real estate costs are relatively reasonable in the Equality State. That's good, too, because if you end up living in Wyoming, you'll find that the outdoors and adventure are so integral to the state's culture that you might not spend that much time in your house anyway.
Rounding out the top 10 is Nevada, with an effective property tax rate of 0.6 percent. Property values in the Silver State are close to the national average at $267,900, meaning annual tax payments are in the ballpark of $1,600. The state of Nevada makes billions of dollars each year on tourism, largely in Las Vegas, making it the state with the fourth highest tourism revenue in the country.
8. West Virginia
The tiny state of Delaware has the sixth-lowest effective property tax rate in the country at 0.57 percent. That’s one of the reasons the state has seen an influx of new residents moving in from neighboring states with higher taxes like New Jersey, which takes top honors among the states with the highest property tax in the United States, Maryland (21st most expensive), and Pennsylvania (11th most expensive).
6. South Carolina
It's a tie! Delaware and South Carolina both have an effective property tax rate of 0.57 percent. The median home value in South Carolina is lower than that of Delaware, though, by almost $100,000, which gives South Carolina the edge in terms of cost of living.
5. District of Columbia
Washington, D.C., isn’t an official state but it has its own property tax, which is surprisingly low at 0.56 percent. That low tax rate, however, goes only so far in shaving dollars off your real estate expenses. Housing costs in the District are quite high, with the median home value coming in at $601,500. Ouch!
Colorado is one of the country’s most beautiful states, with imposing mountain landscapes and incredible natural vistas. One top of its aesthetic appeal, it also has some of the country’s lowest property taxes at just 0.51 percent. The median value of a home in the Centennial State is $343,300, meaning your annual taxes would be $1,756.
As if there weren’t enough reasons to want to move to Hawaii, its 0.28 percent effective property tax rate—the lowest in the United States—is as beautiful as its beaches. Before you trade in your business loafers for flip-flops, realize that the median price of a home in Hawaii is the highest in the country: a whopping $615,300. This would result in an annual property tax bill of $1,715, which is less than the U.S. average, but certainly not chump change. Even paradise has its problems.
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