Top 5 States Without Property Tax

states without property tax
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Real estate taxes can be a major strain on households all across the country. Although there are no states without property tax at all, you can get pretty close.

Living in a state that only takes a small percentage of your home’s value as taxes can save you money on a yearly basis.

So what states should you consider if you’re looking to save some money on your property taxes? Keep reading to find out.

Hawaii

If you’re looking for states without property tax, you can’t do any better than Hawaii. Their tax rate is 0.28% of the average home value. Since the average home in Hawaii costs $500,000 that makes the annual taxes about $1,389.

However, Hawaii also has the second-highest income tax in the nation. This gives it a relatively high overall tax burden. This leads to high prices on consumer goods and a harsh environment for new businesses.

Alabama

Alabama’s property tax sits at 0.43% of the average home value. In Alabama, the median home value is only $122,700. That means that their property taxes come out to just $532 a year.

Alabama is truly a state that makes due with little taxation. They back up their low property taxes with a sales tax that is two percent less than the national average and a personal income tax that varies between 2 and 5%.

Louisiana

At 0.51%, Louisiana’s property taxes are the third-lowest in the nation. The median home value is $140,300 and property taxes annually on that home come out to just $714.

Louisiana also currently has programs in place offering tax breaks to landowners who are completing renovations on properties that have fallen into disrepair after not being maintained annually.

Their income tax is between 2 and 6% and many of the programs in the state are subsidized by the federal government. This gives Louisiana the opportunity to offer a lower tax burden overall.

Delaware

Delaware’s property tax rate is only .04% higher than Louisiana, sitting at 0.55% of the average home value. In Delaware, the median sale price for a house is $226,200 which means the annual property taxes would be about $1,240.

Unfortunately, Delaware is currently facing budget constraints. They plan on raising property taxes as a way to supply new revenue to the state. Homes in Delaware are also subject to county, school district, and vocational school district taxes.

Washington D.C.

Washington D.C. has a property tax of 0.57% of the average home value. The median home sells for $470,500 and the property taxes on that home would be $2,693.

Federal taxes in D.C. more than make up for this low property tax rate. Their tax rate ends up being one of the highest in the nation once everything is taken into account.

Other States Without Property Tax

Trying to find states without property tax is like looking for a unicorn. But by looking for the one with the lowest percentage of total home value, you can save a lot of money annually.

But no matter how low the property tax, you still need to take into consideration the other taxes that will need to be paid if you live in that state.

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