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States With No Income Taxes & States With Low Property Taxes

Actual Property Investing & Property Tax Charges

In america, 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 an area-degree–and since modifications happen ceaselessly–it is tough to find out the precise spots the place property tax is the bottom. Nevertheless, the next info ought to allow you to find areas with excessive appreciation AND low property taxes.

Which States Have the Lowest Property Tax Charges?

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. Sadly, property values in Wyoming are typically fairly depressed, as a result of low inhabitants inflow and a scarcity of jobs. Additionally, Wyoming doesn’t rank extremely with regards to appreciation charges for residential and business actual property. Simply because an space has low property taxes doesn’t imply it is going to be the most effective space to spend money on (or relocate to).

What to Look For When Investing

Search for an space that has a constant fee of actual property appreciation, mixed with pretty low property taxes. Typically, native property tax charges are low as a result of actual property appreciation within the space is low–so it’s essential watch out. Cities situated subsequent to universities and areas the place companies are relocating are often wonderful spots to purchase actual property. Taking note of inhabitants progress may help you notice actual property tendencies and make wiser investments.

Medium-Sized Cities With the Lowest Property Tax Charges

In line with knowledge gathered by the Workplace of the CFO in Washington, D.C., the next cities have the bottom property tax charges in 2006, based mostly on an annual revenue of $seventy five,000. Assuming you earn $seventy five,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 Metropolis OK — $1,538

Kansas Metropolis, 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 Metropolis, UT — $1,904

Virginia Seashore 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 Revenue Taxes & Property Tax Charges

States with no revenue tax (see listing under) often have excessive property tax charges of their respective counties (The state must get its income from someplace!). Nevertheless, the commerce-off is that you’ll have zero taxes on all earned revenue. This could be a big benefit. As an alternative of paying the state 7 to fifteen % (or extra) of your revenue, you possibly can hold your arduous-earned cash, and make investments it again into actual property or different investments. There are presently 9 states that don’t tax revenue on the state degree.

States With No Revenue 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 Discover the Better of Each Worlds: Low Property Tax & No State Revenue Tax

For those who’re on the lookout for one of the best of each worlds (low property tax and no state revenue tax), you might need to think about the next cities:

Sioux Falls, SD

Houston, Texas

Jacksonville, Florida

Memphis, TN

Cheyenne, WY

Las Vegas, Nevada

You can too discover much less properly-recognized cities within the 9 “no-revenue-tax” states. Smaller cities and cities usually supply “high quality of life” benefits, and better-than-common worth appreciation and progress.


Now you recognize which states do not tax revenue, and which areas have the bottom property tax charges. Armed with this data, you possibly can concentrate on discovering the perfect spot in your subsequent residence or actual property funding.

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