States With No Income Taxes & States With Low Property Taxes

Real Estate Investing & Property Tax Rates

In the United States, property tax is assessed by native authorities on the municipal or county degree. The property tax evaluation is predicated 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 modifications happen frequently–it’s tough to find out the precise spots the place property tax is the bottom. However, the next info ought to allow you to find areas with excessive appreciation AND low property taxes.

Which States Have the Lowest Property Tax Rates?

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. Unfortunately, property values in Wyoming are usually fairly depressed, resulting from low inhabitants inflow and a scarcity of jobs. Also, Wyoming doesn’t rank extremely in relation to appreciation charges for residential and industrial actual property. Just as a result of an space has low property taxes doesn’t imply it will likely be the most effective space to spend money on (or relocate to).

What to Look For When Investing

Look for an space that has a constant fee of actual property appreciation, mixed with pretty low property taxes. Often, native property tax charges are low as a result of actual property appreciation within the space is low–so you must watch out. Cities situated subsequent to universities and areas the place companies are relocating are often wonderful spots to purchase actual property. Paying consideration to inhabitants development will help you notice actual property developments and make wiser investments.

Medium-Sized Cities With the Lowest Property Tax Rates

According to information gathered by the Office of the CFO in Washington, D.C., the next cities have the bottom property tax charges in 2006, primarily based 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 City OK — $1,538

Kansas City, 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 City, UT — $1,904

Virginia Beach 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 Income Taxes & Property Tax Rates

States with no revenue tax (see checklist beneath) often have excessive property tax charges of their respective counties (The state must get its income from someplace!). However, the trade-off is that you’ll have zero taxes on all earned revenue. This could be a enormous benefit. Instead of paying the state 7 to 15 p.c (or extra) of your revenue, you may maintain your hard-earned cash, and make investments it again into actual property or different investments. There are at present 9 states that don’t tax revenue on the state degree.

States With No Income Tax




South Dakota




New Hampshire*


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

How To Find the Best of Both Worlds: Low Property Tax & No State Income Tax

If you are in search of the most effective of each worlds (low property tax and no state revenue tax), you could wish to take into account the next cities:

Sioux Falls, SD

Houston, Texas

Jacksonville, Florida

Memphis, TN

Cheyenne, WY

Las Vegas, Nevada

You may discover much less well-known cities within the 9 “no-income-tax” states. Smaller cities and cities typically provide “quality of life” benefits, and higher-than-average worth appreciation and development.


Now you recognize which states do not tax revenue, and which areas have the bottom property tax charges. Armed with this data, you may deal with discovering the most effective spot on your subsequent house or actual property funding.

Source by Michelle Taylor

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