Taxes are the worst. But, for the most part, they’re pretty
much inescapable This includes property taxes. What you might not know,
however, is that property taxes do vary from state to state, and some states
are significantly more reasonable in this area than others.
Understanding Property Taxes
First, it’s important to understand how property taxes work.
Typically, they are a percentage of the property’s value. Thus, the more your
property is worth, the more you’re likely to pay. However, each state’s
individual property tax rate also comes into play.
The States with the Lowest Property Tax Rates
If you want to buy a high-value piece of property, your best
bet is to buy it in one of these states, which boast the lowest property tax
rates in the country:
l Louisiana
l New
Mexico
l Hawaii
l Mississippi
l Alabama
l Arkansas
l Delaware
l South
Carolina
l District
of Columbia
l West
Virginia
Out of all of these low-tax states, the best bet is
Louisiana, which has the country’s lowest property tax at 0.18%. The highest
tax rate in this list is owed to New Mexico, at a 0.55% rate.
The States with the Highest Property Tax Rates
If you’re not lucky enough to find property in one of the
above states, do your best to avoid the states at the other end of the
spectrum- the ones with the highest property tax rates.
These include:
l New
Jersey
l North
Dakota
l New
Hampshire
l Vermont
l Texas
l Michigan
l Nebraska
l Connecticut
l Wisconsin
l Illinois
The worst in this bunch is New Jersey, with a 1.89% tax
rate, while the “best” is North Dakota, at a 1.42% tax rate- still pretty high!
Ultimately, you probably cannot realistically base your
decision about where to buy property based on tax rates. But, if you do have
some leeway, it’s a good idea to go with states with lower rates when possible.
If you can’t do that, then work with a tax advisor to find exemptions and
helpful tips where you can so that, hopefully, you don’t end up totally
drowning in property taxes.
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