Low Property Tax States

Low Property Tax States For Home Buyers Relocating

Gustan Cho Associates are mortgage brokers licensed in 48 states

This Article Is About Low Property Tax States For Home Buyers Relocating

The coronavirus outbreak has made many employers offer remote job career opportunities for their employees. Many jobs are not remote job positions. Remote workers can work in any city, county, state they want. Remote workers do not have to report to a brick-and-mortar location. Therefore, they can live in any state they want.  Now, homebuyers have the opportunity to relocate to any state they want. Many homebuyers are now relocating to lower property-taxed states with affordable housing. In this article, we will discuss and cover how many homebuyers are now fleeing high-taxed states to lower-taxed states with affordable housing.

The Mass Exodus To Lower-Taxed States

What is a mass exodus to countries with lower taxes

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 folks. Many first-time homebuyers are being priced out on home purchases due to high property taxes in many states. Real estate taxes vary 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 payments. In this blog, we will discuss low property tax states for home buyers thinking of relocating.

Low Property Tax States For Home Buyers Offers More Buying Power

Low Property Tax States give home buyers more buying power. $500 per month housing payment is equivalent to a $100,000 mortgage. How much property taxes homeowners pay depends on the municipality and state they live in. There are instances where homeowners pay more in real estate taxes than their mortgage payments. 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 are 0.75%
  • Housing prices are among the lowest in the country with an average home at $250,000

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

Utah Leads As The 11th Least Taxed State

Utah ranks 11th as the state with low property tax.

  • The 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 with low home prices at $284,000 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 $218,000 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

What is the average property tax 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.

  • The average home prices in the state are $300,000
  • The great news is that average property taxes on a $300,000 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

The median home price in West Virginia is $220,000.

  • On a $220,000 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 for homes and low inventory, all areas of Colorado have higher than average home prices
  • The average home prices in Colorado is $470,000

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. 

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

Low Property Tax States Versus High Taxed States: 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 $670,000.

Delaware Has Low Property Tax States For Home Buyers

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

The average home value in Delaware is $376,000.

Louisiana Low Property Tax States And Offers Affordable Homes

Are there low property taxes and affordable homes in Louisiana

Louisiana has very low home prices and taxes.

  • The average median home values in the state are $245,000 with a property tax rate of 0.50%
  • With the warm weather and abundance of places to visit, Louisiana’s population have been growing year after year since 2012

New Orleans is an international tourist destination. 

Low Property Tax States For Home Buyers In Alabama

Homebuyers can get a lot of homes for their money in Alabama.

  • Besides median home prices at $248,000, the state has a real estate tax rate of 0.40%
  • The state has the lowest median home value in 2018 out of all state in the Union

Alabama has great weather, a waterfront for fishing, and countless 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 are averaging $745,000 making it the state with the highest median home value. Living in Paradise can be expensive. The cost of living in Hawaii is very expensive. Everything costs more in Hawaii. 

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