Looking for a new home, means that there are a number of important points that should be valued, among them one of the most relevant is the community where the house we are valuing to move is located, it is essential that it is taken into account, the quality of life, security and local amenities that the location offers us.
However, a significant point to consider, although sometimes overlooked, is the issue of the financial impact that the property may have on our lives, more when talking about the issue of property taxes, also known as real estate tax, are fees that the owners of the property must pay to the tax offices, local or county. The subject of taxes can vary considerably depending on the state in which the property is located, which can have a major impact on the final costs of the property in the long term.
States With the Worst Taxes in the United States
So that when thinking about moving, you should also take into account the very important and sometimes forgotten issue of taxes.
We have in the 51st position the state of New Jersey, with an effective tax rate of 2.23%, a median home value of $384,700, resulting in an average annual property tax of $8,597.69.
In the 50th position to the state of Illinois, with an effective tax rate of 2.08%, a median home value of $432,500, resulting in an average annual property tax of $9,006.07 In the 49th position to the state of New Hampshire, with an effective tax rate of 1.93%, a median home value of $434,700, resulting in an average annual property tax of $8389.53.
Even so, almost all property owners in the United States are subject to the payment of property taxes, some properties may be exempt. These exemptions, which are different from tax deductions, were created to benefit seniors, who are part of programs such as STAR (School Tax Relief), people with disabilities, veterans, and eligible governmental, religious, and nonprofit entities.
These exemption programs, which are targeted at vulnerable or low-income homeowners, can minimize or completely eliminate property taxes. Even those who use their home as their primary residence can apply for exemptions.
State, municipal laws and the situation of each individual are what determine if they are eligible, that’s why it is important to ask the corresponding local services to receive guidance about the available programs.
States With the Lower Property Taxes in 2024
As of the beginning of 2024, data show the U.S. states with the lowest real estate taxes, based on the effective tax rate, median home value or list price, and average annual property tax. These states stand out for having relatively low rates compared to other US states in terms of property taxes. Here is the list:
- Hawaii: Has an effective tax rate of 0.32%, with a median home value or list price of $297,400 and an average annual property tax of $937.29.
- Alabama: Its effective tax rate is 0.40%, with a median home value or list price of $200,900 and an average annual property tax of $803.59.
- Colorado: Has an effective tax rate of 0.55%, with a median home value or list price of $531,100 and an average annual property tax of $2,901.65.
- Wyoming: With an effective tax rate of 0.56%, has a median home value or list price of $252,800 and an average annual property tax of $1,404.42.
