States with the Best Property Taxes

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Feb 25, 2022

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With the rise of remote work possibilities, many Americans may be looking for new homes in their current state or looking to move to a new one.

Whether you’re paying for a home as part of a homeowner’s mortgage statement, financing your home through savings or looking for an investment property, there are a few factors to consider.

Property taxes, how tax-friendly each state is for residents and homeowners insurance are important items to assess when calculating your mortgage payment.

MoneyGeek analyzed the real estate tax rate, annual taxes on a $194,000 house, the state median home value and the annual taxes on homes priced at that state median value for all 50 states and the District of Columbia.

States with the most favorable property taxes

States are ranked based on their effective real estate tax rate. Here are the top 25 states with the most favorable property taxes.

25. Oklahoma

Effective Real-Estate Tax Rate: 0.90%
Annual Taxes on a $194,000 Home: $1,746
State Median Home Value: $147,000
Annual Taxes on Home Priced at State Median Value: $1,323

Oklahoma’s median home value puts it at 48 out of 51 in the country, up three spots from 2019. Its middle-of-the-road property tax rate also makes it a fairly attractive place to live. Right in the center of the country, you’d most likely be able to fly in any direction and still make it to a business meeting.

24. Florida

Effective Real-Estate Tax Rate: 0.89%
Annual Taxes on a $194,000 Home: $1,727
State Median Home Value: $245,100
Annual Taxes on Home Priced at State Median Value: $2,181

Not only is the real-estate tax rate more affordable, but Florida is also a great place to escape a harsh winter. There are several big cities — Orlando, Tampa, St. Petersburg, Jacksonville and Miami — as well as a number of “retiree-friendly” communities, so it can be an attractive place regardless of whether you’re looking to slow down or become part of a thriving metropolis.

23. Kentucky

Effective Real-Estate Tax Rate: 0.86%
Annual Taxes on a $194,000 Home: $1,668
State Median Home Value: $151,700
Annual Taxes on Home Priced at State Median Value: $1,305

If your home is around the state median value in Kentucky, you’re only looking at a little over $100 per month in property taxes. With a real estate tax at .86%, the state is an attractive option for those fleeing higher-priced spots.

22. Indiana

Effective Real-Estate Tax Rate: 0.85%
Annual Taxes on a $194,000 Home: $1,649
State Median Home Value: $156,600
Annual Taxes on Home Priced at State Median Value: $1,326

Indiana ranks 45th in the country for median home value and 22nd for property tax rate, making it an attractive option for people trying to reduce their cost of living. Another perk? Its wide-open spaces offer great terrain to raise a family.

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21. North Carolina

Effective Real-Estate Tax Rate: 0.84%
Annual Taxes on a $194,000 Home: $1,630
State Median Home Value: $193,200
Annual Taxes on Home Priced at State Median Value: $1,623

North Carolina is a great place to live and work, and its reasonably low property tax rate and median home value certainly help. It’s tied for No. 20 for property taxes, and its median home value is well below $200,000, so your annual taxes will be fairly manageable. If you work in the technology or health research field, the Research Triangle can also be a lovely option.

20. Montana

Effective Real-Estate Tax Rate: 0.84%
Annual Taxes on a $194,000 Home: $1,630
State Median Home Value: $253,600
Annual Taxes on Home Priced at State Median Value: $2,130

With some of the most beautiful scenery in the country, Montana might be your spot. The state also has a slower pace of life and a relatively affordable median home value, so it should come as no surprise that many people are moving here to get away from it all.

19. Virginia

Effective Real-Estate Tax Rate: 0.82%
Annual Taxes on a $194,000 Home: $1,591
State Median Home Value: $288,800
Annual Taxes on Home Priced at State Median Value: $2,368

Virginia’s proximity to Washington D.C., plus its extensive shoreline, puts the state’s real estate in the top third of the country’s median value list. It comes in at No. 14 for the state median home value and No. 19 on the property tax list. It’s a favorite of many D.C. professionals who can’t afford the median home value in the city.

18. Mississippi

Effective Real-Estate Tax Rate: 0.81%
Annual Taxes on a $194,000 Home: $1,571
State Median Home Value: $128,200
Annual Taxes on Home Priced at State Median Value: $1,038

Mississippi is one of the most affordable states to live in when it comes to property values and taxes, so it’s an ideal place if you’re trying to stay within a housing budget. It’s got a low cost of living and a lower cost for higher education.

17. New Mexico

Effective Real-Estate Tax Rate: 0.80%
Annual Taxes on a $194,000 Home: $1,552
State Median Home Value: $180,900
Annual Taxes on Home Priced at State Median Value: $1,447

New Mexico is No. 36 on our median home value list and No. 17 on the property tax rate list, which means it’s an excellent place to consider if you’re stretching your housing dollars. The state is currently experiencing slow population growth, giving more opportunities for those leaving the high-priced coasts.

16. California

Effective Real-Estate Tax Rate: 0.76%
Annual Taxes on a $194,000 Home: $1,474
State Median Home Value: $568,500
Annual Taxes on Home Priced at State Median Value: $4,321

California has a relatively low property tax rate, ranking in the lowest third in the country. But its high median property value puts it at the highest annual tax dollar amount on our list. If you can find some lower home prices — usually outside bigger cities — you can still take advantage of the fairly low tax rate.

15. Tennessee

Effective Real-Estate Tax Rate: 0.71%
Annual Taxes on a $194,000 Home: $1,377
State Median Home Value: $191,900
Annual Taxes on Home Priced at State Median Value: $1,362

Tennessee is home to some of the biggest healthcare corporations in the country. Smaller cities and towns also have more affordable housing, meaning you can take better advantage of lower rates.

14. Idaho

Effective Real-Estate Tax Rate: 0.69%
Annual Taxes on a $194,000 Home: $1,339
State Median Home Value: $255,200
Annual Taxes on Home Priced at State Median Value: $1,761

Bordering Montana to the west, Idaho is also close enough to Seattle and Portland to be a feasible option for remote workers from bigger cities. Low property taxes and 20th-in-the-nation home values make this a particularly good alternative to tech-centric states.

13. Arizona

Effective Real-Estate Tax Rate: 0.66%
Annual Taxes on a $194,000 Home: $1,280
State Median Home Value: $255,900
Annual Taxes on Home Priced at State Median Value: $1,689

Given the median home value and the real-estate tax rate, you’re looking at just $150 per month in property taxes in Arizona. That’s not too shabby! The warm weather also makes this state a very popular destination for people looking for a change of temperature and scenery.

12. Utah

Effective Real-Estate Tax Rate: 0.63%
Annual Taxes on a $194,000 Home: $1,222
State Median Home Value: $330,300
Annual Taxes on Home Priced at State Median Value: $2,081

Thanks to growing cities like Salt Lake City and Provo, Utah has one of the highest home values in the country, clocking in at No. 11. But its property tax rates pull it to No. 10 on our list. If you love skiing and winter sports and are searching for a state close to the West Coast, it is worth considering.

11. Arkansas

Effective Real-Estate Tax Rate: 0.62%
Annual Taxes on a $194,000 Home: $1,203
State Median Home Value: $136,200
Annual Taxes on Home Priced at State Median Value: $844

Arkansas currently ranks 49th out of 51 on the median home value list and comes in at 11th overall. With its property tax rates, it is a solid living choice for people who want to stretch their budgets. Plus, it offers beautiful countryside with plenty to do for those who love the outdoors.

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10. Wyoming

Effective Real-Estate Tax Rate: 0.61%
Annual Taxes on a $194,000 Home: $1,183
State Median Home Value: $235,200
Annual Taxes on Home Priced at State Median Value: $1,435

Your home on the range is No. 24 on our median home value list, but it has one of the best property tax rates at only .61%. Wyoming’s geography is wide open, so it’s also possible to spread out, find a bigger space and get some work done.

9. Nevada

Effective Real-Estate Tax Rate: 0.61%
Annual Taxes on a $194,000 Home: $1,183
State Median Home Value: $235,200
Annual Taxes on Home Priced at State Median Value: $1,435

8. West Virginia

Effective Real-Estate Tax Rate: 0.58%
Annual Taxes on a $194,000 Home: $1,125
State Median Home Value: $124,600
Annual Taxes on Home Priced at State Median Value: $723

With the lowest median property value in the country and one of the lowest property tax rates, you’re looking at some of the best taxes in the country.

There’s only one other state on our list where you’ll pay less in property taxes on the state’s median home value: Alabama.

7. South Carolina

Effective Real-Estate Tax Rate: 0.57%
Annual Taxes on a $194,000 Home: $1,106
State Median Home Value: $179,800
Annual Taxes on Home Priced at State Median Value: $1,025

South Carolina’s median home values clock in at No. 37, and property tax rates put it at No. 6, which means you’re looking at roughly $85 per month in property taxes. If you’re a fan of college football, you’ll have plenty of reasons to celebrate living here.

6. Delaware

Effective Real-Estate Tax Rate: 0.57%
Annual Taxes on a $194,000 Home: $1,106
State Median Home Value: $261,700
Annual Taxes on Home Priced at State Median Value: $1,492

Delaware falls in the top half of median home values but the lowest 20% of property tax rates. Bordered by Pennsylvania, New Jersey and Maryland, it’s a great place for people who want to get distance from the big cities but still be close enough to travel to be there within a few hours.

5. Washington, D.C.

Effective Real-Estate Tax Rate: 0.56%
Annual Taxes on a $194,000 Home: $1,086
State Median Home Value: $646,500
Annual Taxes on Home Priced at State Median Value: $3,620

It’s a good thing property taxes are so low in Washington D.C. because home values skyrocketed in 2020. It ranks second after Hawaii for median home values that have cracked half a million dollars. But remember that D.C. has no senators, and its representative in the House of Representatives has limited voting privileges.

4. Louisiana

Effective Real-Estate Tax Rate: 0.55%
Annual Taxes on a $194,000 Home: $1,067
State Median Home Value: $172,100
Annual Taxes on Home Priced at State Median Value: $947

As one of the states with the lowest property tax rates and one of the lowest median home values (No. 40), Louisiana has some of the lowest annual taxes on homeowners in the country. It’s one of only five states where the annual taxes on state median value homes did not crack the four-figure mark.

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3. Colorado

Effective Real-Estate Tax Rate: 0.51%
Annual Taxes on a $194,000 Home: $989
State Median Home Value: $394,600
Annual Taxes on Home Priced at State Median Value: $2,012

Colorado is one of the best places to be in the country if you’re looking for beautiful scenery and gorgeous mountain views. With one of the 10 best property tax rates, it’s all the more attractive if you’re looking for a home.

2. Alabama

Effective Real-Estate Tax Rate: 0.41%
Annual Taxes on a $194,000 Home: $795
State Median Home Value: $154,000
Annual Taxes on Home Priced at State Median Value: $631

If you’re trying to figure out the most tax-friendly states, Alabama will certainly make the list. The state is 47th in a ranking of country-wide home values, and it ranks second for the lowest property tax rate. When you compare it to West Virginia’s taxes on median home value, Alabama ekes out a win by $91.

1. Hawaii

Effective Real-Estate Tax Rate: 0.28%
Annual Taxes on a $194,000 Home: $543
State Median Home Value: $669,200
Annual Taxes on Home Priced at State Median Value: $1,874

It’s a good thing Hawaii has the lowest property tax rates in the country because it’s got the highest median property values. You’ll easily pay more in annual taxes than in other states for a property at the median state value. But if you can find a home for less, you’ll save the most on your total property taxes. Plus, you’ll have sunrises and sunsets that everyone else can only dream of.

This article originally appeared on MoneyGeek and was republished with permission through MediaFeed.org.

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