Many Americans are thinking about relocating to a new home that could be both safer and more affordable. Taxes can vary greatly between places and property taxes are one of the three major tax categories, along with sales and income taxes.
We've compiled a list of the average 2020 real estate property taxes in each state, ranking them from the lowest to the highest taxed. The list can be found here. See below for a brief analysis of some of these places.
“Some states have no income tax, others have no sales tax, but every locality has a property tax. Property tax rates vary greatly between states and cities. Some of the variation is due to the absence of a state income or sales tax, but another factor is the local cost of housing," reveals BestPlaces founder Bert Sperling.
"In our rankings, you can see that Hawaii has the lowest property tax rate but its property tax amount is near the national average ($2886)," shares Bert. "The reason is that Hawaii has the highest home cost of any state, so a low tax rate will still raise plenty of money for its government programs.
"Property, sales, income, and even automobile taxes all vary between states, but one thing is certain… governments will find a way to get the money they need to deliver the services their residents want and need," concludes Sperling.
If state and local taxes are an important part of your relocation decision, check out the Taxes section in our enhanced Cost of Living comparison to get the complete tax picture for any city.
As part of our Premium Subscription you get customized Cost of Living comparisons, including property taxes, between any two cities in the United States. You can enter your own salary and home costs to calculate the local property taxes, of plus see a comparison of other taxes, home values, health care costs, child care, and more. Click here to learn more.
- Alabama has the next lowest average property tax after Hawaii with an average of $4.22 per $1,000 in home value, which means that real estate owners pay $616 in annual taxes on the average $146,000 home.
- Louisiana comes in third place with an average $5.20 per $1,000, with the result that homeowners pay an average of $867 per year in property taxes.
- Washington, D.C. is also one of the places on our list with a very low property tax in comparison to other places in the U.S., averaging at $5.45 for every $1,000. Despite D.C.'s low tax rate, a high median home price of $651,500 results in a hefty $3,551 in annual property taxes.
- In fifth place comes Colorado with an average of $5.51 for every $1,000 and $2,234 on a median $405,400 home.
For a spreadsheet of the average property taxes in all 50 states and the District of Columbia, click here.