States With No Income Taxes & States With Low Property Taxes

Real Estate Investing & Property Tax Rates

In the United States, assets tax is classified by means of native govt on the municipal or county point. The assets tax review is in keeping with two values–the price of the land, and the worth of the construction. Since assets tax is calculated at a local-level–and since adjustments happen frequently–it’s tough to resolve the precise spots the place assets tax is the bottom. However, the next data will have to allow you to find spaces with top appreciation AND low assets taxes.

Which States Have the Lowest Property Tax Rates?

County tax charges are regularly averaged right into a unmarried determine, and this quantity is used when evaluating assets taxes between states. Surprisingly, Wyoming has the bottom assets tax charges. Unfortunately, assets values in Wyoming have a tendency to be beautiful depressed, because of low inhabitants inflow and a loss of jobs. Also, Wyoming does no longer rank extremely on the subject of appreciation charges for residential and business actual property. Just as a result of a space has low assets taxes does no longer imply it’s going to be the most productive space to put money into (or relocate to).

What to Look For When Investing

Look for a space that has a constant price of actual property appreciation, mixed with moderately low assets taxes. Often, native assets tax charges are low as a result of actual property appreciation within the space is low–so you wish to have to watch out. Cities situated subsequent to universities and spaces the place companies are relocating are in most cases very good spots to shop for actual property. Paying consideration to inhabitants expansion mean you can spot actual property traits and make wiser investments.

Medium-Sized Cities With the Lowest Property Tax Rates

According to knowledge collected by means of the Office of the CFO in Washington, D.C., the next towns have the bottom assets tax charges in 2006, in keeping with an annual source of revenue of $75,000. Assuming you earn $75,000 yearly, listed below are the valuables tax quantities you may pay in every town…

Birmingham AL — $988

Cheyenne WY — $1,108

Phoenix AZ — $1,248

Wichita KS — $1,309

Denver CO — $1,362

Charleston WV — $1,395

Oklahoma City OK — $1,538

Kansas City, 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 City, UT — $1,904

Virginia Beach 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 Income Taxes & Property Tax Rates

States with out a source of revenue tax (see checklist beneath) in most cases have top assets tax charges of their respective counties (The state must get its earnings from someplace!). However, the trade-off is that you’re going to have 0 taxes on all earned source of revenue. This is usually a massive merit. Instead of paying the state 7 to 15 % (or extra) of your source of revenue, you’ll stay your hard earned cash, and make investments it again into actual property or different investments. There are lately 9 states that don’t tax source of revenue on the state point.

States With No Income Tax




South Dakota




New Hampshire*


*New Hampshire and Tennessee don’t tax earned source of revenue, however they DO tax capital positive aspects (dividend and pastime source of revenue).

How To Find the Best of Both Worlds: Low Property Tax & No State Income Tax

If you are searching for the most productive of each worlds (low assets tax and no state source of revenue tax), you might wish to imagine the next towns:

Sioux Falls, SD

Houston, Texas

Jacksonville, Florida

Memphis, TN

Cheyenne, WY

Las Vegas, Nevada

You too can discover much less well known towns within the 9 “no-income-tax” states. Smaller cities and towns normally be offering “quality of life” benefits, and higher-than-average value appreciation and expansion.


Now you realize which states do not tax source of revenue, and which spaces have the bottom assets tax charges. Armed with this information, you’ll focal point on discovering the most productive spot to your subsequent house or actual property funding.

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