Homeowners
What are the states with the lowest property taxes?
Alcove Team · 2/4/22
States with the lowest Property Taxes:
Hawaii.
Alabama.
Colorado.
Louisiana.
District of Colombia
In the US, local governments rely on property taxes to support initiatives such as a parks, schools, road construction, maintenance, and recreation programs. Your state's public transport and the salaries of municipal workers such as firefighters, police, etc., all are paid through the taxes you pay. While some states have exemptions that allow you to avoid paying property taxes if you fulfill specific criteria, every state in the US has a minimum property tax.
And every state has its different property taxes. Here, we will highlight those with the lowest ones.
Hawaii
Property tax rate = 0.28%
Average home price = $702,288
Hawaii has maintained the lowest effective property taxes in the United States. However, it is not an easy task to bear the living expenses in this state, as it is one of the most expensive states to live in. Additionally, Hawaii has the highest average home value, which means that the actual amount that the owners' payout is on the high side.
Hawaii's low taxes are due to several exemptions offered to certain types of homeowners. One of the main exemptions is aimed at homeowners who own residential properties.
Full-time homeowners — that is, homeowners with non-second-party buildings or rented homes — are eligible for exemptions ranging from $80,000 to $160,000, depending on accommodation. Each of the eight islands of Hawaii sets its rental rates. In general, these exemptions can significantly reduce the cost of property sales to homeowners anywhere in the state — at least when it comes to real estate.
Alabama
Property tax rate = 0.41%
Average home price = $165,334
Alabama has maintained a low property tax rate. The residential home prices are also below those of the average home prices in the United States.
Homeowners in Alabama typically pay one-fourth of what homeowners nationwide pay their property taxes. Thanks in part to this, homes in this situation are taxed at only 10% of the home's market value.
That being said, local districts, school districts, and municipalities set rates for homeowners, which means prices vary depending on where you live in government.
Colorado
Property tax rate = 0.51%
Average home price = $345,000
Colorado has maintained a low property tax rate, but the residential home prices are high and are presently rising.
Colorado's average home price is higher than any other province on the list, but the applicable real estate tax rate is less than three in the nation. What makes that low tax rate possible is the fact that Colorado's local tax rates do not apply to market value.
They are applied to an assessed value, called a residential value assessment, and the assessed value is only a fraction of the market value of your home.
Louisiana
Property tax rate = 0.55%
Average home price = $183,101
Like many of the Southern states, Louisiana has maintained both a low property tax rate and low average home values.
There are various kinds of local government bodies in Louisiana, which can impose a property tax, and each authority has its rates, which gives the idea that the homeowners are being charged by numerous bodies each year.
The surprising fact is that while there are numerous bodies imposing taxes, Louisiana's real estate tax structure is still maintaining low properties tax rates for the homeowners in this state.
District of Colombia
Property tax rate = .56%
Average home price = $687,778
Washington D.C. is not considered a state, but it has maintained its property tax rate, which is low. However, the living expenses of DC are high, and its living expenses are considered as one of the highest in the country.
In America, states and local governments charge property taxes on a yearly basis, depending on the assessed value of the land and structures acquired.
If you like to live on a vast land with a large house, you should consider moving to a state with reduced property tax rates.