States With No Revenue Taxes & States With Low Property Taxes

Actual Property Investing & Property Tax Charges

In america, property tax is assessed by native authorities on the municipal or county degree. The property tax evaluation is predicated on two values–the worth of the land, and the worth of the constructing. Since property tax is calculated at a local-level–and since adjustments happen frequently–it’s tough to find out the precise spots the place property tax is the bottom. Nonetheless, the next info ought to make it easier to find areas with excessive appreciation AND low property taxes.

Which States Have the Lowest Property Tax Charges?

County tax charges are sometimes averaged right into a single determine, and this quantity is used when evaluating property taxes between states. Surprisingly, Wyoming has the bottom property tax charges. Sadly, property values in Wyoming are typically fairly depressed, on account of low inhabitants inflow and an absence of jobs. Additionally, Wyoming doesn’t rank extremely with regards to appreciation charges for residential and industrial actual property. Simply because an space has low property taxes doesn’t imply will probably be the most effective space to spend money on (or relocate to).

What to Look For When Investing

Search for an space that has a constant fee of actual property appreciation, mixed with pretty low property taxes. Typically, native property tax charges are low as a result of actual property appreciation within the space is low–so it is advisable to watch out. Cities positioned subsequent to universities and areas the place companies are relocating are normally glorious spots to purchase actual property. Being attentive to inhabitants progress may also help you notice actual property developments and make wiser investments.

Medium-Sized Cities With the Lowest Property Tax Charges

In accordance with information gathered by the Workplace of the CFO in Washington, D.C., the next cities have the bottom property tax charges in 2006, based mostly on an annual revenue of $75,000. Assuming you earn $75,000 yearly, listed here are the property tax quantities you’ll pay in every metropolis…

Birmingham AL — $988

Cheyenne WY — $1,108

Phoenix AZ — $1,248

Wichita KS — $1,309

Denver CO — $1,362

Charleston WV — $1,395

Oklahoma Metropolis OK — $1,538

Kansas Metropolis, MO — $1,595

Little Rock AR — $1,648

Louisville, KY — $1,713

Jacksonville FL — $1,744

Honolulu HI — $1,781

Billings MT — $1,864

Salt Lake Metropolis, UT — $1,904

Virginia Seaside VA — $1,918

Jackson MS — $1,971

Charlotte, NC — $2,021

Boise, ID — $2,176

Columbia SC — $2,214

Las Vegas NV — $2,225

Sioux Falls SD — $2,228

New Orleans, LA — $2,231

Wilmington DE — $2,416

Memphis TN — $2,501

Albuquerque NM — $2,517

Houston TX — $2,861

The Connection Between State Revenue Taxes & Property Tax Charges

States with no revenue tax (see record under) normally have excessive property tax charges of their respective counties (The state must get its income from someplace!). Nonetheless, the trade-off is that you’ll have zero taxes on all earned revenue. This is usually a big benefit. As an alternative of paying the state 7 to 15 p.c (or extra) of your revenue, you’ll be able to hold your hard-earned cash, and make investments it again into actual property or different investments. There are at the moment 9 states that don’t tax revenue on the state degree.

States With No Revenue Tax




South Dakota




New Hampshire*


*New Hampshire and Tennessee don’t tax earned revenue, however they DO tax capital positive aspects (dividend and curiosity revenue).

How To Discover the Better of Each Worlds: Low Property Tax & No State Revenue Tax

In case you’re searching for the most effective of each worlds (low property tax and no state revenue tax), you might wish to think about the next cities:

Sioux Falls, SD

Houston, Texas

Jacksonville, Florida

Memphis, TN

Cheyenne, WY

Las Vegas, Nevada

You can too discover much less well-known cities within the 9 “no-income-tax” states. Smaller cities and cities usually supply “high quality of life” benefits, and higher-than-average worth appreciation and progress.


Now you understand which states do not tax revenue, and which areas have the bottom property tax charges. Armed with this data, you’ll be able to deal with discovering the most effective spot on your subsequent dwelling or actual property funding.

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