States In America With The Lowest Property Taxes In 2024

Another fascinating element of property taxes is the terminology and the way they are regularly calculated. In many states, counties use what’s referred to as a millage rate, in which the tax fee of one mill represents a tax legal responsibility of $1 per $1,000 of assessed cost of the property — one one-thousandth, for this reason, the period “mill”.

Thus, when it comes to figuring out the states with the lowest property taxes, there is no statewide property tax fee that states can be ranked against. Instead, the excellent strategy for figuring out the states with the lowest property taxes is to decide the positive property tax rate: The actual greenback quantity paid in actual property taxes as a proportion of the median domestic price for a state.

In a current study, Credit Karma analyzed all 50 U.S. states to decide which states had the lowest taxes. They find out by taking into account private earnings tax rates, national income tax rates, and nice property tax rates, calculating the latter based totally on the median quantity of actual property taxes paid and the median domestic price stated in the Census Bureau’s 2020 American Community Survey Five-Year Estimates, the cutting-edge records available.

List of States in America With the Lowest Property Taxes

The 10 states with the lowest property taxes are a fascinating combination geographically speaking. Five out of the 10 states are placed in the U.S. South region, as targeted via the Census Bureau. Four out of the 10 states with the lowest property taxes are placed in the U.S. Mountain division. And one nation is positioned in the Pacific division. Below is a breakdown of the 10 states with the lowest property taxes:

1. Hawaii

Median actual property taxes paid: $1,788

Owner-occupied median domestic value: $636,400

Effective property tax rate: 0.281%

2. Alabama

Median actual property taxes paid: $608

Owner-occupied median domestic value: $149,600

Effective property tax rate: 0.406%

3. Colorado

Median actual property taxes paid: $1,868

Owner-occupied median domestic value: $369,900

Effective property tax rate: 0.505%

4. Louisiana

Median actual property taxes paid: $926

Owner-occupied median domestic value: $168,100

Effective property tax rate: 0.551%

5. South Carolina

Median actual property taxes paid: $962

Owner-occupied median domestic value: $170,100

Effective property tax rate: 0.566%

6. Delaware

Median actual property taxes paid: $1,468

Owner-occupied median domestic value: $258,300

Effective property tax rate: 0.568%

7. Nevada

Median actual property taxes paid: $1,660

Owner-occupied median domestic value: $290,200

Effective property tax rate: 0.572%

8. West Virginia

Median actual property taxes paid: $719

Owner-occupied median domestic value: $123,200

Effective property tax rate: 0.584%

9. Utah

Median actual property taxes paid: $1,837

Owner-occupied median domestic value: $305,400

Effective property tax rate: 0.602%

10. Wyoming

Median actual property taxes paid: $1,380

Owner-occupied median domestic value: $228,000

Effective property tax rate: 0.605%

FAQs

Which states in America have the lowest property taxes?

The states with the lowest property taxes in the United States include Hawaii, Alabama, Louisiana, Delaware, and West Virginia.

How do these states manage to keep property taxes low?

These states often rely on other sources of revenue, such as sales taxes, income taxes, or tourism-related income, to fund government services. Additionally, they may have lower property tax rates or offer exemptions and credits to certain groups of property owners.

Are there any downsides to living in a state with low property taxes?

While low property taxes can be appealing, they may also indicate lower funding for public services like schools, infrastructure, and emergency services. It’s essential to consider the overall tax burden and quality of services when evaluating the benefits and drawbacks of living in such states.

Do these states provide any incentives for homeowners to keep taxes low?

Some states offer homestead exemptions, which reduce the taxable value of a primary residence for eligible homeowners. Others may have programs that freeze property tax assessments for certain groups like seniors or veterans.

Are property tax rates uniform within these states, or do they vary by locality?

Property tax rates can vary significantly within states, with cities and counties often setting their own rates based on local needs and budgets. It’s important for homeowners to research specific areas within these states to understand the property tax implications fully.

Conclusion

In general, the U.S. South and West tend to have decreased high-quality property tax charges than the Midwest and Northeast. Indeed, the distinction between the 10 states with the lowest property taxes and the states of the Midwest and Northeast is striking.

Whereas in Hawaii the median actual property taxes paid have been $1,788 towards a median owner-occupied domestic cost of $636,400, for a high-quality property tax price of 0.281%, in New Jersey, the median actual property taxes paid have been $8,489 in opposition to a median owner-occupied domestic price of $343,500, equal to a positive property tax price of 2.471%. In the Midwest, Illinois has the perfect property taxes: With a median of $4,529 in actual property taxes paid in opposition to a median owner-occupied domestic cost of $202,100, Illinois’s fine property tax price is 2.241%.

You can locate the place your nation ranks via checking out the  full document of states with the lowest taxes in 2024.