The Lowest Property Taxes By State In 2022

No matter what homeowner you talk to, they’ll all tell you that how much you pay in property taxes could severely affect your buying decision.

Between the mortgage, the upkeep, bills, and other costs, homes can cost so much more than you’d think – and that’s not even talking about the property tax!

To know which states offer the lowest in property taxes, we took a look at Wallethub’s recent data , as well as from the U.S. Census, before listing out the top 20 states with the lowest tax rates. By considering this list, you can more effectively determine the property that is right for you, be it simply an investment house flipper, or the dream home for you and your family.

20. Montana

With incredibly low property rates, Montana ensures all owner-occupied areas only pay a fraction of their costs, a similar sentiment for many commercial properties as well.

  • Median Home Value: $230,600
  • Annual Property Taxes: $1,928
  • Effective Property Tax Rate: 0.84%

19. Virginia

While VA may have constant reevaluations, older properties cannot exceed 1% of their value while newer ones are more subject to changes when being reevaluated. This means Richmond will have much cheaper homes than Loudon or Tysons Corner.

  • Median Home Value: $$273,100
  • Annual Property Taxes: $2,234
  • Effective Property Tax Rate: 0.82%

18. Mississippi

Mississippi’s rates can vary greatly due to them basing it on the local area. To continue to keep rates low, owner-occupied areas are valued at 10%, while everything else is at 15%. Various exemptions (like homestead exemptions) similarly keep prices competitive.

  • Median Home Value: $119,000
  • Annual Property Taxes: $958
  • Effective Property Tax Rate: 0.81%

17. New Mexico

Another great spot is New Mexico. This place taxes are not only low but help the local government, with rates being determined by the county. Residential properties are based on a third of their value, further reducing rates for homeowners.

  • Median Home Value: $171,400
  • Annual Property Taxes: $1,371
  • Effective Property Tax Rate: 0.80%

#16. California

Certainly, a shock for many, California’s tax rates are very low due to Prop 13. This bill keeps the property tax to 1% of the value while also ensuring that value can’t exceed 2% per year.

  • Median Home Value: $505,000
  • Annual Property Taxes: $1,644
  • Effective Property Tax Rate: 0.76%

15. Tennessee

Based on the local authorities of the state, Tennessee’s rates vary from county to county. Properties are reevaluated every four-to-six years, which can see a hike throughout the state. Despite this, because taxes aren’t applied to the market value, Tennessee’s property rates continue to stay low.

  • Median Home Value: $167,200
  • Annual Property Taxes: $1,190
  • Effective Property Tax Rate: 0.71%

14. Idaho

The state’s county determines the taxes annually. And while they should be high, the homeowner’s exception exempts half the value of an owner-occupied residence. They are exempted up to $100,000, greatly giving homeowners a solid chance.

  • Median Home Value: $212,300
  • Annual Property Taxes: $1,456
  • Effective Property Tax Rate: 0.69%

13. Arizona

On average, Arizonans pay $1,000 less than the rest of the country. This is because the value is based on 10% of the property’s value. In addition, the local tax rate is based on 1% of the property’s value.

  • Median Home Value: $225,500
  • Annual Property Taxes: $1,499
  • Effective Property Tax Rate: 0.66%

12. Utah

In Utah, there are 360 different tax districts, each valuing their respective area at 55% market value. What keeps it low, however, is its “Truth-in-Taxation Law”. This lowers rates in areas that have gone up in value. If officials want to change it, they’ll have to go to court, something none of them wish to do.

  • Median Home Value: $279,100
  • Annual Property Taxes: $1,748
  • Effective Property Tax Rate: 0.63%

11. Arkansas

Taxes are based on the property’s assessed level, with them being taxed at every level of government. Despite this, because the appraised value is assessed against 20% of its actual value. This means homes are viewed (and taxed) at much lower rates as a result.

  • Median Home Value: $127,800
  • Annual Property Taxes: $798
  • Effective Property Tax Rate: 0.62%

10. Wyoming

Always considered a tax haven for the wealthy, Wyoming assesses property tax rates at 9.5% of their value. What’s more, they are only revalued every six years.

  • Median Home Value: $220,500
  • Annual Property Taxes: $1,337
  • Effective Property Tax Rate: 0.61%

9. Nevada

It’s common knowledge that, despite the casino life, Nevada has pretty affordable living. Homeowners are protected from steep tax hikes due to the Property Tax Abatement Law. This limits tax increases to only 3% per year. Similarly, Nevada assesses homes at 35% of their value, greatly reducing the tax rate.

  • Median Home Value: $267,900
  • Annual Property Taxes: $1,614
  • Effective Property Tax Rate: 0.60%

8. West Virginia

West Virginia’s low median value, 60% valuation rate, and active appeal to value increase greatly ensure the state has some of the lowest property taxes in the country.

  • Median Home Value: $119,600
  • Annual Property Taxes: $698
  • Effective Property Tax Rate: 0.58%

7. South Carolina

South Carolina’s low tax rates are due to properties having an assessment of 4% of their value if owner-occupied. In addition, the state offers 15% caps on any market value increases per year, similarly keeping rates low and competitive.

  • Median Home Value: $162,300
  • Annual Property Taxes: $924
  • Effective Property Tax Rate: 0.57%

6. Delaware

A very small state, Delaware’s local governments determine the tax rate, with counties sporadically seeing reassessments, sometimes decades at a time. Because of this, homes can be based on percentages of house values from the 70s or 80s.

  • Median Home Value: $251,000
  • Annual Property Taxes: $1,431
  • Effective Property Tax Rate: 0.57%

5. Washington D.C.

Despite the median home being over half a million dollars, DC has very low property tax rates. Each year, owners have numerous credits and deductions available, like the Homestead Deduction, which takes $75,700 off the assessed value of a home. These and other deductions result in homeowners paying a fraction of the cost.

  • Median Home Value: $601,500
  • Annual Property Taxes: $3,378
  • Effective Property Tax Rate: 0.56%

4. Louisiana

Although multiple entities levy taxes on homeowners because residential properties are valued at 10% (along with other exceptions) prices stay incredibly low.

  • Median Home Value: $163,100
  • Annual Property Taxes: $890
  • Effective Property Tax Rate: 0.55%

3. Colorado

While the median might be a bit higher, this doesn’t affect their market value. Instead, homes follow the assessed value, which is at a fraction of the cost, generally around 7.15%.

  • Median Home Value: $343,300
  • Annual Property Taxes: $1,756
  • Effective Property Tax Rate: 0.51%

2. Alabama

Alabama homeowners generally pay a fourth of the country in property taxes. This generally sits at around 10% for most of the state.

  • Median Home Value: $142,700
  • Annual Property Taxes: $587
  • Effective Property Tax Rate: 0.41%

1. Hawaii

Hawaii is known for being expensive. Thankfully this does not include the tax rate. Because of its many exemptions surrounding owner-occupied residences, among others, homeowners can reduce their rates based on the county.

  • Median Home Value: $615,300
  • Annual Property Taxes: $1,715
  • Effective Property Tax Rate: 0.28%

In conclusion, as you can see for the list above the when looking at the lowest property taxes by state, it doesn’t mean that the values will be lower. Be mindful where you buy a property. As each property is associated with taxes that can cut into your bottom line as a long term investment.

propertee1

We are Mobile Home Investors Who buy Mobile Homes and rents them out.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on selling your land below. Like us, follow us, connect!

Get A Fair Cash Offer For Your Land Now..

  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Your Fair Cash Offer Today!

Submit!
×