No matter in which country or state you live in, taxes are something that you have to pay. Government charges different types of taxes to increase its revenues. Among them, property taxes are said to be the key source.
Property taxes play a crucial role in increasing the income of local governments. So the government can use the money to fund newer projects or on existing projects like schools, road construction, maintenance, parks, and more.
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But in some states, you may have to pay excessive taxes, which you may not like.
5 Best States for Property Taxes and Why:
So the question is, what are the best states for property taxes in the U.S., and why are they? Well, let’s find it below:
#1 – Hawaii
First of all, there is Hawaii. It has an effective property tax rate of 0.30%4 and attracts a median home value of $648,1946.
The state charges an annual tax on a home priced at a state median value is $1,945, and the median household income is $83,1027.
As per our research, we have found that Hawaii has the lowest effective property tax rate. But yes, it has the highest median home value. As a result, homeowners still have to pay a hefty tax bill annually.
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#2 – Alabama
Next, there is Alabama, with an effective property tax rate of 0.40%4. The state attracts a median home value of $149,9966.
Also, it charges an annual tax on home priced state median value is $600. Also, the state has a median household income of $51,7347.
Moreover, the state has both a low tax rate and home prices which are below the median home value in the USA. As a result, it is definitely one of the most affordable states to own a home.
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#3 – Louisiana
You can also check out Louisiana, which has an effective property tax rate of 0.52%4. Plus, it has a median home value of $171,5046 and charges about $892 as annual taxes on homes priced at state median value.
#4 – Wyoming
Up next, there is Wyoming. This state’s median values are not as low as compared to some other states. But the good part is that there is no state income tax. It only has an effective property tax rate of 0.55%4.
Along with that, it attracts a median home value of $256,4276 and charges about $1,410 as an annual tax on a home priced at the state median value. Also, the median household income is $65,0037. Overall, the state’s sale tax is also one of the lowest in the country.
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#5 – West Virginia
Lastly, there is West Virginia. The state has a median home value of $107,7626, and it attracts an effective property tax rate of 0.55%4.
The state also charges an annual tax on a home priced at a state median value of $593. And the state has a median household income of $48,8507.
Overall, West Virginia has a low effective property tax. Along with that, it also has modest home prices. As a result, owning a house in this state would be super affordable for you.