Property taxes can be a killer and sometimes a deal breaker. When you buy a house, you have to consider the property tax bill you will have to pay. In some areas of the United States, property taxes are very high. Other areas, boast low property tax rates, like West Virginia.
If you’re considering on moving and your location isn’t locked in by a new job, choosing a state with low property tax rates might make a lot of sense. Let’s look at where the property taxes are the lowest and where they are the highest.
6 States with the Lowest Property Taxes in the United States
The islands have the lowest property taxes in the entire country. Hawaii has a property tax rate of 0.30%. However, this state also has the highest median home value in the entire country. This means even with the lower rate; property taxes are pretty high in Hawaii.
Next on the list is Alabama at just 0.40%. Not only are the property taxes in Alabama low, but it’s also considered a rather affordable place to buy a home.
The effective tax rate in Louisiana is 0.52%. It’s very low and the cost of living is also known to be very low with gas in Louisiana only taxed at 20 cents per gallon.
Wyoming comes in next at 0.55%. This state also has a very low sales tax at just 4% making it one of the most affordable states in the country.
5. West Virginia
Actually, tied with Wyoming for 4th on the list, West Virginia has a property tax rate of 0.55%. The state is also known for modest home prices, which makes it a very affordable place to live and an attractive place for real estate investors.
6. South Carolina
Slightly higher than the last two on the list, South Carolina has a property tax rate of 0.56%. Some of the areas do have higher-priced properties, especially closer to the ocean.
The statistics for the states with the lowest property taxes are based on the list from FourtuneBuliders.com.
6 States with the Highest Property Taxes in the United States
1. New Jersey
New Jersey has the highest effective tax rate at 2.49%. This means, on a $217,500 home, you will pay $5,419 per year for property taxes.
The state of Illinois is next with an effective tax rate of 2.27%. You will pay $4,942 annually on a home worth $217,500 in Illinois.
3. New Hampshire
If you live in New Hampshire, you will pay an effective tax rate of 2.18%. On a $217,500 home, the cost of your annual taxes will be $4,738.
Connecticut is just a touch lower than New Hampshire at 2.14%. If you have a home worth $217,500, you will pay $4,658 per year for your property taxes.
The first state below 2% on the list is Vermont. The effective tax rate is 1.9% in Vermont. You will pay $4,135 per year on a home worth $217,500.
Coming in just a tiny bit lower than Vermont is Wisconsin at 1.85%. You will pay $4,027 per year on a home worth $217,500 if you live in Wisconsin.
The stats for the highest property taxes in the United States are according to the States and Property Taxes report from U.S. News.
If you’re looking for a place to relocate with lower property taxes, affordable properties, and plenty of natural areas, West Virginia is for you. The property taxes are very low, combined with many very affordable homes, making it a great place to call home.