Low Property Tax States For Home Buyers


This BLOG On Low Property Tax States For Home Buyers Relocating Was PUBLISHED On February 11th, 2019

Many homeowners in states with high property taxes are looking to relocate to low property tax states. Technology has made workers easier to work from home. Many employers now offer remote job positions to many employees. This makes it easier for people to live in any state. Being tied down to a particular geographical region is no longer necessary to countless of folks.

  • Many first time home buyers are being priced out on home purchases due to high property taxes in many states
  • Real estate taxes varies depending on not just the state but the municipality
  • For example, in Illinois, there are counties and towns with 2% property taxes but some areas may have taxes as high as 5% to 10%
  • There are many older homeowners who have no mortgages but cannot afford their homes due to real estate taxes
  • Some states have such high real estate taxes that homeowners taxes can be higher than their mortgage payment

On this blog, we will discuss low property tax states for home buyers thinking of relocating.

Low Property Tax States Offers Buyers More Buying Power

Low Property Tax States gives home buyers more buying power.

  • $500 per month housing payment is equivalent to $100,000 mortgage
  • How much property taxes homeowners pay depends on the municipality and state they live
  • There are instances where homeowners pay more in real estate taxes than their mortgage payment
  • Many municipalities and counties keep on increasing real estate taxes year after year due to their financial mess

Many are thinking of moving to low property tax states.

States With Low Property Tax States

On this blog, we will cover states with low property tax.

  • Tennessee is in 12th position as states with low property tax
  • Tennessee is the 12th largest state in the U.S.
  • The real estate taxes is 0.75%
  • Housing prices is among the lowest in the country with an average home at $150,000

There are many homes in the state with real estates below $1,000.

Utah Leads As The 11th Least Taxed State

Utah ranks 11th as states with low property tax.

  • Effective real estate tax rate in the state is 0.67% of the home’s assessed value
  • The state is a very popular tourist destination with five national parks
  • Bordering the state of Colorado, Utah has many five star ski resorts
  • Many retirees move to Utah for retirement

The low taxes coupled by low home prices at $184,000 makes Utah a very affordable state for home buyers.

Arkansas Home Prices One Of The Most Affordable

The state of Arkansas ranks as the 10th least expensive state on real estate taxes.

  • Real estate tax rate of 0.63% and median home prices at $118,000 makes Arkansas one of the most desirable relocation spots in the country
  • The state’s warm climate and low cost of living attracts many to the state every year

The state has been growing over 12% in population every year since 2014. 

Average Property Taxes Of $1,200 In Wyoming

For those who enjoy the outdoors and vast land, Wyoming may be the perfect place to buy a home and raise your family.

  • Average home prices in the state is $200,000
  • Great news is that average property taxes on a $200,000 home is only $1,200 per year

After the real estate boom throughout the country, the state has seen a significant population growth year after year since 2015.

West Virginia Welcomes Home Buyers Seeking Affordable Homes

Median home prices in West Virginia is $120,000.

  • On a $120,000 home, homeowners will pay $700 in property taxes
  • West Virginia is the 8th lowest property tax state in the United States

The state is a great popular tourist spot for many Americans and folks from overseas.

Colorado Has Low Taxes But High Home Prices

Colorado has very low real estate taxes.

  • However, due to the high demand of homes and low inventory, all areas of Colorado have higher than average home prices
  • Average home prices in Colorado is $370,000

However, the tax rate on real estate is 0.57% making it the 7th state with the lowest taxes.

Relocating To South Carolina

South Carolina is one of the most scenic states in the U.S. 

  • With median home prices at $165,000 and property tax rate at 0.56%, South Carolina is one of the states with the most affordable homes in the U.S.
  • The cost of living is very low in South Carolina

The state is in great financial shape unlike other states like New York, California, Illinois.

Buying Home In District Of Columbia

The District of Columbia is a territory of the United States.

  • DC is not a state
  • However, the District of Columbia has its own real estate taxes at 0.55% which is considered very low

DC has one of the highest home values in the country with median home prices at $570,000.

Delaware Has Low Real Estate Taxes

Delaware has the fourth cheapest real estate tax rate in the U.S. at 0.53%.

  • Due to the low taxes, thousands of new residents are moving to Delaware from high taxed neighboring states like New Jersey, New York, Maryland, and Pennsylvania

Average home values in Delaware is $276,000.

Louisiana Offers Affordable Homes

Louisiana has very low home prices and taxes.

  • Average median home values in the state is $145,000 with a property tax rate of 0.50%
  • The warm weather and abundance places to visit, Louisiana’s population have been growing year after year since 2012

New Orleans is an international tourist destination. 

Relocating Family To Alabama Due To Affordable Housing

Home buyers can get a lot of home for their money in Alabama.

  • Besides median home prices at $148,000, the state has the real estate tax rate at 0.40%
  • The state has the lowest median home value in 2018 out of all state in the Union

Alabama has great weather, waterfront for fishing, and countless of tourist spots.

Hawaii Has The Highest Home Value But Lowest Tax Rate On Homes

The state of Hawaii has the lowest property tax rate in the United States at 0.23%. However, the state has the highest home value out of all state. Average homes in Hawaii is averaging $645,000 making it the state with the highest median home value. Living in Paradise can be expensive. Cost of living in Hawaii is very expensive. Everything costs more in Hawaii. 

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