Lowest Property Tax Rates: These states in the United States impose the least onerous property tax obligations on their homeowners. The location of the homeowner has a big impact on their property tax liability.
A financial analysis of real estate taxes in all states and the District of Columbia was recently conducted by the website WalletHub. The website calculated the effective real estate tax rate in each state by dividing the median property price by the median real estate tax payment in that state.
According to WalletHub, the states listed below have the lowest effective real estate property tax rates.
We also include additional tax information from the Tax Foundation to provide a more complete picture of the potential liability of each state resident.
Lowest Property Tax Rates: 9 States with the Lowest Property Tax Rates
West Virginia
- The effective state real estate tax rate is 0.55%.
- In West Virginia, the annual property tax liability for a median-priced dwelling amounts to $809.
- There is a 3% to 6.5% income tax bracket, and the state sales tax rate is 6%.
Utah
- The effective real estate tax rate in Utah is 0.55%.
- In Utah, the average property tax payment on a residence with a median price is $2,241.
- A fixed 4.85% is levied on income, while the state sales tax rate is 6.1%.
Delaware
- The effective real estate tax rate in Delaware is 0.55%.
- In Delaware, the average property tax payment on a residence with a median value is $1,674.
- The range for income tax is 2.2% to 6.6%. In Delaware, sales taxes do not apply.
Louisiana
- 0.55% is the effective real estate tax rate in Louisiana.
- In Louisiana, the average property tax payment on a residence with a median price is $1,087.
- The state sales tax rate is 4.45%, while the income tax rate varies between 1.85% and 4.25%.
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South Carolina
- 0.53% is the effective real estate tax rate in South Carolina.
- Annual property taxes on a median-priced residence in South Carolina amount to $1,138 for the average resident.
- The spectrum of income tax rates is zero to 6.5%, while the rate of state sales tax is 6%.
Nevada
- The effective real estate tax rate in Nevada is 0.50%.
- In Nevada, median-priced homes incur property taxes for $1,884 per household.
- In Nevada, there is no income tax. The rate of state sales tax is 6.85%.
Colorado
- Effective state real estate tax rate: 0.49%
- In Colorado, the median expenditure on real estate property taxes amounts to $2,278.
- The state sales tax is 2.9%, while the income tax is a fixed 4.4%.
Alabama
- The effective real estate tax rate in Alabama is 0.39%.
- Property taxes for the average homeowner in Alabama who owns a residence priced at the median are the lowest in the nation at $701.
- The 2% to 5% income tax rate is comparable to the 4% state sales tax rate.
Hawaii
- The effective real estate tax rate in Hawaii State is 0.27%.
- The average Hawaii household owes $2,054 in property taxes on a residence with a median value.
- The range of income tax rates is 1.4% to 11%, while the rate of state sales tax is 4%.