Moving To States With Low Property Taxes And Affordable Housing
This Article Is About Moving To States With Low Property Taxes And Affordable Housing
There are many home buyers Moving To States With Low Property Taxes.
Property taxes vary from state to state. Many homeowners with free and clear mortgages are having a difficult time affording their homes due to high property taxes. This holds especially true for seniors with fixed incomes. Moving To States With Low Property Taxes enables homebuyers to get more homes for their money.
A large percentage of Illinois homeowners are fleeing to Indiana due to lower taxes. Many New Yorkers are leaving to other lower-taxed states as well.
Why Are Property Taxes Different
Well-managed states normally have low property taxes. Most people do not care about politics. However, states with mismanagement normally keep on raising taxes. Illinois is a perfect example.
Illinois has many towns and cities that are very desirable. However, due to incompetent politicians, the state is in a financial mess. Chicago has one of the highest tax rates in the country.
Chicago also has higher sales taxes and other taxes as well than the rest of the state. The city is very generous with city employees. Chicago police and firefighter pension funds are on the verge of bankruptcy. Politicians keep on increasing not just property taxes but overall taxes.
The newly-elected freshman Illinois Governor JB Pritzker is not wasting any time in introducing an increase in income taxes and sales taxes with just months being elected in office.
What States Are Home Buyers Moving To
In general, most home buyers are migrating to the Southern States. The southern states have lower property taxes. New Jersey has the highest property tax rates in the country. Illinois has the second-highest property tax rates.
Many home buyers who sell their homes in New Jersey and/or Illinois can save over $9,500 in property taxes. This is equivalent to a $180,000 mortgage.
You can now understand why seniors with fixed incomes are fleeing higher-taxed states.
Comparison Of High Versus Low Property Taxes
Statistics from the National Association of Home Builders, homeowners in New Jersey have the highest property tax rates.
New Jersey also has high home prices. Average homeowners are being taxed $9,500 every year.
The effective property tax rate in the state of New Jersey is set at 2.13%. Illinois has the second-highest property tax rate in the country. Many well-managed states have substantially lower property tax rates.
Hawaii has one of the highest home values. But the tax rates are at 0.30%. Most Southern States have the lowest property tax rates in the country. Texas, a community property state, has no state income taxes. However, Texas has the 10th highest property tax rate in the U.S. Texas economy is healthy, unlike Illinois.
Most Popular States Home Buyers Are Moving Due To Lower Taxes
Below is the list of states with the lowest real estate taxes:
- North Carolina
The above states have the lowest real estate taxes in the U.S. Here are the states with the highest real estate tax rates:
- New Jersey
- New York
- New Hampshire
- Rhode Island
In general, states in the South have lower real estate taxes. Northeastern and Midwest states normally have among the highest real estate tax rates in the United States.