Where to Find the Lowest Property Taxes in the Nation


by Laura Mueller

Property taxes are a reminder that owning land is far from a no-cost endeavor after your initial investment. And depending on where your land is, you may by paying quite a bit more—or quite a bit less—than land owners in surrounding states.

Property taxes vary quite a bit from state to state, with the average American spending about $2,279 a year, according to a report from the finance team at WalletHub. Own land in New Jersey, Illinois, or New Hampshire though and you’re going to spend significantly more than that amount every single year.

There are a lot of factors that matter when you’re deciding where to buy land. And if your scope is large and you’re not set on a certain state, property taxes are usually going to be one of those factors. So where should you look if you want to score the best deals on your property tax bill? The list below is a good place to start.

The 11 states with the lowest property tax rates:

  1. Hawaii – Property Tax Rate: 0.27%
  2. Alabama – Property Tax Rate: 0.42%
  3. Louisiana – Property Tax Rate: 0.52%
  4. Colorado and the District of Columbia – Property Tax Rate: 0.55%
  5. Delaware – Property Tax Rate: 0.56%
  6. South Carolina – Property Tax Rate: 0.57%
  7. West Virginia – Property Tax Rate: 0.59%
  8. Wyoming – Property Tax Rate: 0.61%
  9. Arkansas – Property Tax Rate: 0.63%
  10. Utah – Property Tax Rate: 0.66%

Based on a property price of $194k (the median home price in the country), property owners in these states pay between just $525 and $1,280 a year—thousands less than property owners in states with the highest property tax rates.

Speaking of those high rate states….

The 11 states with the highest property tax rates:

  1. New Jersey – Property Tax Rate: 2.44%
  2. Illinois – Property Tax Rate: 2.31%
  3. New Hampshire – Property Tax Rate: 2.20%
  4. Connecticut – Property Tax Rate: 2.07%
  5. Wisconsin – Property Tax Rate: 1.94%
  6. Vermont and Texas – Property Tax Rate: 1.83%
  7. Nebraska – Property Tax Rate: 1.80%
  8. New York – Property Tax Rate: 1.68%
  9. Rhode Island – Property Tax Rate: 1.66%
  10. Michigan – Property Tax Rate: 1.64%

With the same median home price of $194k taken into consideration, property owners in these states are paying an average of anywhere from $3,179 to $4,725 in property taxes each year—more than double what property owners in the states with the lowest property taxes are spending.

Of course, if you’re looking to make a strong land investment, the property tax itself isn’t the only thing to consider. But knowing where to look for the lowest property tax rates can help you make an investment that isn’t just sound on purchase but that will cost you less over time.

*All data from WalletHub’s 2019’s Property Taxes by State report.

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