States With No Income Taxes & States With Low Property Taxes

real estate guide

Actual Property Investing & Property Tax Charges

In the US, property tax is assessed by native authorities on the municipal or county stage. The property tax evaluation relies on two values ​​- the worth of the land, and the worth of the constructing. Since property tax is calculated at a local-level – and since adjustments happen regularly – it's difficult to find out the precise spots the place property tax is the bottom. Nevertheless, the next info ought to enable you to find areas with excessive appreciation AND low property taxes.

Which States Have the Lowest Property Tax Charges?

County tax charges are sometimes averaged right into a single determine, and this quantity is used when evaluating property taxes between states. Surprisingly, Wyoming has the bottom property tax charges. Sadly, property values ​​in Wyoming are typically fairly depressed, resulting from low inhabitants inflow and an absence of jobs. Additionally, Wyoming doesn’t rank extremely in terms of appreciation charges for residential and industrial actual property. Simply because an space has low property taxes doesn’t imply it will likely be the most effective space to put money into (or relocate to).

What to Look For When Investing

Search for an space that has a constant price of actual property evaluation, mixed with pretty low property taxes. Typically, native property tax charges are low as a result of actual property appreciation within the space is low – so you should watch out. Cities positioned subsequent to universities and areas the place companies are relocating are often glorious spots to purchase actual property. Listening to inhabitants development can assist you see actual property tendencies and make wiser investments.

Medium-Sized Cities With the Lowest Property Tax Charges

Based on knowledge collected by the Workplace of the CFO in Washington, DC, the next cities have the bottom property tax charges in 2006, based mostly on an annual revenue of $ 75,000. Assuming you earn $ 75,000 yearly, listed here are the property tax quantities you’d pay in every metropolis …

Birmingham AL – $ 988

Cheyenne WY – $ 1,108

Phoenix AZ – $ 1,248

Wichita KS – $ 1,309

Denver CO – $ 1,362

Charleston WV – $ 1,395

Oklahoma Metropolis OK – $ 1,538

Kansas Metropolis, MO – $ 1,595

Little Rock AR – $ 1,648

Louisville, KY – $ 1,713

Jacksonville FL – $ 1,744

Honolulu HI – $ 1,781

Billings MT – $ 1,864

Salt Lake Metropolis, UT – $ 1,904

Virginia Seashore VA – $ 1,918

Jackson MS – $ 1,971

Charlotte, NC – $ 2,021

Boise, ID – $ 2,176

Columbia SC – $ 2,214

Las Vegas NV – $ 2,225

Sioux Falls SD – $ 2,228

New Orleans, LA – $ 2,231

Wilmington DE – $ 2,416

Memphis TN – $ 2,501

Albuquerque NM – $ 2,517

Houston TX – $ 2,861

The Connection Between State Revenue Taxes & Property Tax Charges

States with no revenue tax (see checklist under) often have excessive property tax charges of their related counties (The state must get its income from someplace!). Nevertheless, the trade-off is that you’ll have zero taxes on all earned revenue. This could be a large benefit. As a substitute of paying the state 7 to 15 p.c (or extra) of your revenue, you’ll be able to preserve your hard-earned cash, and make investments it again into actual property or different investments. There are at the moment 9 states that don’t tax revenue on the state stage.

States With No Revenue Tax




South Dakota




New Hampshire *

Tennessee *

* New Hampshire and Tennessee don’t tax earned revenue, however they DO tax capital features (divide and curiosity revenue).

How To Discover the Better of Each Worlds: Low Property Tax & No State Revenue Tax

In case you're in search of the most effective of each worlds (low property tax and no state revenue tax), chances are you’ll wish to contemplate the next cities:

Sioux Falls, SD

Houston, Texas

Jacksonville, Florida

Memphis, TN

Cheyenne, WY

Las Vegas, Nevada

You too can discover much less well-known cities within the 9 "no-income-tax" states. Smaller cities and cities usually provide "quality of life" benefits, and higher-than-average worth appreciation and development.


Now you already know which states don’t tax revenue, and which areas have the bottom property tax charges. Armed with this data, you’ll be able to concentrate on discovering the most effective spot to your subsequent house or actual property funding.

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With education, health care and small business marketing as her core interests, M.T. Wroblewski has penned pieces for Woman's Day, Family Circle, Ladies Home Journal and many newspapers and magazines. She holds a master's degree in journalism from Northern Illinois University.


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