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Last updated: May 5, 2021 • Real Estate Market

Top 5 Most Favorable States for Property Taxes

Property taxes are something that is unavoidable if you want to live legally and within the law. However, living in an area with high real estate property tax can be a financial burden, especially when you’re paying high taxes in other areas of your life too. Many people report that they believe real estate property taxes are the least fair of all taxation, and in many areas nice properties are stamped with extremely high rates, making them impossible for a regular person to afford.

It’s always a good idea to do your research before deciding where to live next, and checking out the real estate property taxes in a state is a good place to start. It’s important to pick a place you will be able to afford easily, both with and without the strain of a high tax burden.

Here are five locations that are scenic, but also boast an amazingly low property tax.

  • South Carolina. With a tax rate dropping in at around .57% of the average home value, South Carolina ties with the District of Columbia in that range. However, since the state is over 22 billion dollars in debt, taxes are bound to rise in the near future.
  • Ever wanted real estate in Hawaii? Scenic as well as exotic, Hawaii has more to offer than just its culture and aesthetic. Rounding in at about .28% property tax, this state has the lowest average property tax in the country, but keep in mind that it makes up for that in other ways. With the second highest income tax in the US, and an expensive price tag on property, it’s quite the trade-off.
  • Louisiana. .51% percent is the statewide average, which puts median property taxes on $140,000 homes at about $714 per year. A steal, and along with the property tax break called the Restoration Tax Abatement, you can catch a break depending on the amount of repairs you do on your home and property.
  • Alabama. While the median home value weighs in at $122,000, the property tax only rings up to .43%, making it the second lowest in the country. Alabama is also known for collecting one of the least amounts of overall taxes, so if you’re looking to scoot under insane tax rates, it might be something worth checking out.
  • Real estate agents in Delaware can tell you that this state fits within the middle range on this list, with property taxes at .55%. For a home costing 226,200, the yearly tax rate would be no more than $1,240. Even so, the potential for a raised rate is high, since the state currently faces quite a bit of debt. Delaware is also known for its high school district taxes and county property taxes as well.

Taxes can be a pain for any citizen, but with the proper research, you can minimize the cost and avoid any financial burdens along the way. Be sure to check state websites, talk to residents who already live in the area, query your real estate agent, and consult friends or family for real estate tips on how to reduce your tax burden.


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