if you love paying property taxes then this is not the post for you.
Because today, we’re going to uncover the best states to live in to save on property taxes.
We recently published a post with a list of the worst property taxes by states.
And was it ugly that some states had property taxes as high as 2.5% which you’ll see is almost 10 times the rate that people are paying in other states.
So if you haven’t read that post yet, you definitely have to check it out.
And read this one until the end because we’re about to give you the top states with the lowest property taxes to live in to save on taxes.
In this post, we’re going to continue the fun as we go through the states with the lowest property taxes in the country.
What Are Property Taxes For?
As you know, property taxes help to fund your local state government. It funds your police, public parks, and perhaps most importantly, your local education system.
But to what extent are these property taxes just too high or too low?
Are the states with the lowest property taxes worse off than others? And if not, would you consider moving to one of these states to save more money?
With that said, let’s go ahead and jump into our list!
The Top 10 Best Property Taxes by States
Not only is Hawaii the most popular travel destination in the country, but it also has the lowest property taxes.
Now, Hawaii is one of the most beautiful places in the world, and this property tax rate is very affordable for homeowners.
The effective property tax rate in Hawaii is just 0.28% which is basically nothing in comparison with New Jersey.
New Jersey’s property taxes are about 2.5% which is almost nine times more expensive than Hawaii.
However, there are some major disadvantages of owning property in Hawaii.
First of all, it is very expensive to buy a home in Hawaii. In fact, it is the most expensive in the nation.
Hawaii’s mediated home value is $615,000 making it much more expensive than any state in the United States.
Hawaii also has the second-highest income tax in the country coming in at 11%. That’s 11 times more than other states like Florida and Texas who virtually have no income tax at all.
So with all that said, you might want to stick around to discover some of the other states if you want to pay less in property taxes.
Unlike Hawaii, Alabama has both low property taxes and low home values. Its property tax rate is just 0.41% which is just 587 per year.
In this state, the median home value is $142, 000. So if you want to keep your property expenses low, Alabama might be worth looking into.
The population in Alabama has been steadily increasing and property taxes might just be the reason why.
But if you’re not in love with Alabama, then you might like the next one on our list.
Here’s a fun fact about Colorado: It is the only state where you can be standing in four states at the same exact time.
But if you’re paying property taxes, you probably want to be standing in the state of Colorado.
The reason why is the fact that Colorado has the third lowest property tax rate in the country sitting right at 0.51%.
It also is home to one of the most beautiful cities in our country – Denver.
So if you’re into skiing, snowboarding, or just paying less in property taxes then definitely check out Colorado.
Now bouncing back to the deep south, number four on our list is the state of…
It is also the home to the jazz capital of the world – New Orleans.
Louisiana has very attractive property tax rates. Its property tax rate is just a few decimals shy of Colorado coming in at just 0.55%.
With its home prices being amongst the lowest in the country, Louisiana might be a perfect place to own property.
5. District of Columbia
Next on our list here is the district of Columbia. Now technically, it is not a state but it is his own entity.
So it’s worth mentioning that the district of Columbia has very low property taxes.
However, there is a bit of a plot twist here: With the district of Columbia, like Hawaii, the cost to buy property here is extremely high.
In fact, home values in dc are the second highest in the whole country falling right behind Hawaii. The median home value is $601,000.
For some perspective, that’s $100,000 more than the homes in California.
So although property taxes are very low in the district of Columbia, it may not be the most affordable place to own property.
It is known for being one of the most business-friendly states in the country.
And it’s no surprise that Delaware has very low property taxes.
It was the first state to actually ratify the u.s constitution, and it also seems like they ratified low taxes. Delaware has just a 0.57% effective property tax rate and has no sales tax at all.
In the state, its population has also been rising steadily which may be affording the state the ability to keep its taxes low.
All in all, Delaware is a great state to own property in.
Also at number six, we have a tie – the state of South Carolina.
7. South Carolina
South Carolina has the exact same property tax rate as Delaware at 0.57%.
However, home values in South Carolina are much lower than Delaware’s which may ultimately make South Carolina a better place to live in if you want to save on property taxes.
The median home price in South Carolina is $162,000 while Delaware’s median home price is $251,000.
Honestly, it’s starting to seem like if you want both low property tax rates and low home values, the south might be a good home for you.
8. West Virginia
Often considered one of the most scenic states in the nation, West Virginia is simply a beautiful place to see.
And property taxes fall right in line, coming in at just 0.58%.
However, we can’t say that this is necessarily a good thing because West Virginia certainly has its share of issues.
West Virginia has one of the highest poverty rates in the country and also is known for having very poor education scores.
On one hand, maybe they should raise taxes to improve things like this in their state.
But on the other hand, if a lot of the people there are in poverty, they may not be able to afford those taxes.
Because Nevada is extremely popular for tourism, it can afford to offer its residents very low property taxes.
Nevada’s effective property tax rate is just 0.6% making the state extremely attractive for people, especially on the west coast.
Not only that, but Nevada also has zero state income taxes which is another huge tax benefit of moving to the state.
So how is this even possible? Well, it’s possible because of tourism taxes.
Tourism actually funds over 34% of Nevada’s general fund.
So basically, Nevada residents are benefiting from the money of outsiders visiting their state and it’s really a beautiful thing.
This is interesting because Wyoming actually has the lowest population out of any other state in the U.S. with only about 500,000 plus people living there.
So how can they improve that well? Maybe they’re trying to improve it by making it more attractive financially.
Wyoming only has a 0.61% property tax rate but that’s not the end of the story there.
It also has a below-average sales tax rate and no state income tax whatsoever making it a perfect place to live if you want to save on property taxes.
So there you have it, folks! These are the top 10 states with the best property taxes.
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