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Want To Move? 5 States with the Lowest Property Taxes

5 States with Lowest Property Taxes
Image: Creative Commons.

Nobody likes to pay high property taxes, and a lot of homeowners take the property tax rates into consideration in deciding where to live.

What states in the country have the lowest property taxes (check out here the overall lowest taxed states here)? WalletHub recently examined that question.

The cheapest is Hawaii. That state has an effective real-estate tax rate of 0.28 percent, for a total of $606 of annual taxes on a $217,500 home. The state’s median home value is $615,300 — the highest total in the nation — with $1,715 in taxes levied on a home of that value.

Second is Alabama, where the effective real-estate tax rate is 0.41 percent, with annual taxes on a $217,500 home are $895. A state median home value there is only $142,700.

The third-lowest rate is Colorado, with an effective real-estate tax rate of 0.51 percent, and an annual taxes on a $217,500 listed as $1,113.

In fourth place for the lowest property tax rate is Louisiana. The rate there is 0.55 percent, with annual taxes on a $217,500 home coming in $1,187.

Fifth on the list is Washington, D.C., where the effective real estate tax rate is 0.56 percent, with annual taxes on a $217,500 listed at $1,221, and the state median home value listed at $601,500.

But if we’re counting only states, two are tied for fifth: South Carolina and Delaware, each with an effective real-estate tax rate of 0.57 percent. In South Carolina, the annual taxes on a home worth $217,500 was $1,238, while Delaware listed that figure as $251,100.

As for the most expensive states in regard to property taxes, New Jersey is tops, followed by Illinois, New Hampshire, Connecticut, Vermont, Wisconsin and Texas.

It’s worth noting that this survey covers property taxes, and not overall state taxes, which are a separate category. Also, the survey was released in February so there is a chance that it is outdated in some areas.

WalletHub also looked at the Effective Vehicle Tax Rate for each state. There are 24 states with no such tax, while four other states – Louisiana, Michigan, California, and Alabama – had such rates of less than one percent. Virginia, with 4.05 percent, has the highest such rate nationally and the only one over four percent, while Mississippi is second with 3.50 percent, while Rhode Island is third with 3.44 percent.

Overall, WalletHub reported, citing Census data, that the average U.S. household pays $2,471 on property taxes for their homes each year.

And what about political considerations? Blue states, per the survey, rank an average of 29.27, while red states rank 22.6. The cheapest state is Hawaii, a solidly blue state, while the second is deep-red Alabama. But the five states with the highest property tax rates are all blue.

 Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Written By

Stephen Silver is a journalist, essayist, and film critic, who is also a contributor to Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review, and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

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