10 States With No Property Taxes 2023

Are you fed up with yearly property tax payments that are too high? We have some happy news for you, though! In a small number of US states, there are no property taxes at all. That’s right, homeownership can become much more manageable and affordable if there are no more yearly payments to worry about. We’ll examine these states in more detail and what distinguishes their taxation regimes in this post. Continue reading to learn which states might be ideal for you if you’re looking for ways to reduce your home expenses.

2023 States Without Property Tax

Taxes are something that Americans are accustomed to paying. Depending on their state of residence, people also pay additional state income taxes on top of their federal income taxes. Besides income taxes, property taxes might also be necessary.

Property tax is a real estate ad-valorem tax assessed by the jurisdiction where the property is located and paid for by the property owner. It is regarded as a regressive tax. Taxes are calculated annually by multiplying the property tax rate by the current market value. Education, infrastructure, law enforcement, parks and recreation, public transportation, and water and sewer improvements are all supported by property taxes.

Unfortunately, property taxes are present in every state; however, some are extremely minimal, while others do not apply to vehicles. States with lower property taxes may compensate by charging higher taxes elsewhere, such as a high sales tax.

Most expensive states for property taxes

TOP
Hawaii$281Alabama$406Colorado$505Louisiana$551South Carolina$566Delaware$568Nevada$572Utah$575DC$575West Virginia$584

The northeast region typically has some of the highest property tax rates, with New Jersey having the highest at 2.47%. Property taxes in New Jersey cost an average homeowner $8,104 per residence. The fact that county and municipal governments in New Jersey cannot enact local income or sales taxes, unlike in other states, is one factor contributing to the state’s consistently high property tax rate. In New Jersey, property taxes cover the majority of expenses.

Illinois has the second-highest property tax rate. In Illinois, the property tax rate is 2.30%. Property tax bills in Illinois were comparable to the national average in 1996, but over the next 20 years, they increased by 80%. Despite property taxes rapidly rising, home value growth has lagged.

Keep Reading

At 2.20%, New Hampshire’s property tax rate ranks third in the nation. Property taxes are paid by New Hampshire residents at a rate of 5.6% of income, which is the highest of any state. Younger people have difficulty buying homes due to the high property tax rate because the property tax bill frequently exceeds their mortgages. However, New Hampshire does not have a sales tax and does not tax earned salaries or wages with an income tax.

Connecticut has the fourth-highest property tax rate, with a rate of 2.11%. The state tax burden per person is $2,847, which is double the national average of $1,518. Connecticut now collects more than $11 billion in property taxes every year. Local officials are concerned that the local government cannot continue to be funded solely by property taxes.

Wisconsin’s property tax rate, which drops below 2%, is the fifth-highest in the country at 1.91%. In Wisconsin, the average per-person property tax is $1,615.71, which is higher than the national average. Wisconsin has a $178,900 median home value and a $59,305 median household income.

Most affordable states for property taxes

There are no states without real estate property taxes, as was already mentioned. However, 23 states with property taxes are less than 1.00%.

Which state charges the least amount of property taxes?

With a 0.27% property tax rate, Hawaii has the lowest rate. Hawaii has a very high median home price despite the very low tax rate, so homeowners can still expect to pay property taxes of about $1,607 per year.

In addition to having one of the lowest median home prices in the country ($137,200), Alabama also has the second-lowest property tax rate (0.42%), which is significantly less than the national average ($225,300). As a result, the average annual tax is only $572.

With a 0.53 percent property tax rate, Louisiana ranks third lowest in the nation. The property tax rate in Louisiana is significantly lower than the 1.08% national average. The state’s homestead exemption, which lowers the taxable value of owner-occupied properties by $7,500 in assessed value, is one factor in the low cost of property taxes.

Colorado’s 0.53% property tax rate is the fourth-lowest in the nation. Homeowners can anticipate paying the 21st lowest average property tax bill in the country, at $1,647, even though the average home value is one of the highest in the country.

The District of Columbia charges property taxes at a rate that ranks fifth-lowest in the nation at 0.55%. With a median home value in D.C. of $568,400, the average taxpayer can anticipate paying $3,113 in property taxes yearly.

The 10 states with the highest property taxes are listed below:

States	Property Tax
New Jersey	$2,471.
Illinois	$2,241
Connecticut	$ 2.133
New Hampshire	$2,129
Vermont	$1,902
Wisconsin	$1,781
Texas	$1,753
New York	$1,720
Nebraska	$1,684
Rhode Island	$1,571