States With No Revenue Taxes & States With Low Property Taxes


Actual Property Investing & Property Tax Charges

In the USA, property tax is assessed by native authorities on the municipal or county stage. The property tax evaluation relies on two values–the worth of the land, and the worth of the constructing. Since property tax is calculated at a local-level–and since modifications happen frequently–it’s tough to find out the precise spots the place property tax is the bottom. Nevertheless, the next data ought to make it easier to find areas with excessive appreciation AND low property taxes.

Which States Have the Lowest Property Tax Charges?

County tax charges are sometimes averaged right into a single determine, and this quantity is used when evaluating property taxes between states. Surprisingly, Wyoming has the bottom property tax charges. Sadly, property values in Wyoming are typically fairly depressed, because of low inhabitants inflow and an absence of jobs. Additionally, Wyoming doesn’t rank extremely in relation to appreciation charges for residential and business actual property. Simply because an space has low property taxes doesn’t imply it is going to be the very best space to put money into (or relocate to).

What to Look For When Investing

Search for an space that has a constant price of actual property appreciation, mixed with pretty low property taxes. Typically, native property tax charges are low as a result of actual property appreciation within the space is low–so it’s good to watch out. Cities situated subsequent to universities and areas the place companies are relocating are normally glorious spots to purchase actual property. Taking note of inhabitants development may help you see actual property tendencies and make wiser investments.

Medium-Sized Cities With the Lowest Property Tax Charges

In line with information gathered by the Workplace of the CFO in Washington, D.C., the next cities have the bottom property tax charges in 2006, based mostly on an annual earnings of $75,000. Assuming you earn $75,000 yearly, listed below are the property tax quantities you’d pay in every metropolis…

Birmingham AL — $988

Cheyenne WY — $1,108

Phoenix AZ — $1,248

Wichita KS — $1,309

Denver CO — $1,362

Charleston WV — $1,395

Oklahoma Metropolis OK — $1,538

Kansas Metropolis, MO — $1,595

Little Rock AR — $1,648

Louisville, KY — $1,713

Jacksonville FL — $1,744

Honolulu HI — $1,781

Billings MT — $1,864

Salt Lake Metropolis, UT — $1,904

Virginia Seaside VA — $1,918

Jackson MS — $1,971

Charlotte, NC — $2,021

Boise, ID — $2,176

Columbia SC — $2,214

Las Vegas NV — $2,225

Sioux Falls SD — $2,228

New Orleans, LA — $2,231

Wilmington DE — $2,416

Memphis TN — $2,501

Albuquerque NM — $2,517

Houston TX — $2,861

The Connection Between State Revenue Taxes & Property Tax Charges

States with no earnings tax (see checklist under) normally have excessive property tax charges of their respective counties (The state must get its income from someplace!). Nevertheless, the trade-off is that you should have zero taxes on all earned earnings. This could be a big benefit. As an alternative of paying the state 7 to 15 % (or extra) of your earnings, you may maintain your hard-earned cash, and make investments it again into actual property or different investments. There are at present 9 states that don’t tax earnings on the state stage.

States With No Revenue Tax




South Dakota




New Hampshire*


*New Hampshire and Tennessee don’t tax earned earnings, however they DO tax capital positive aspects (dividend and curiosity earnings).

How To Discover the Better of Each Worlds: Low Property Tax & No State Revenue Tax

In the event you’re in search of the very best of each worlds (low property tax and no state earnings tax), it’s possible you’ll wish to take into account the next cities:

Sioux Falls, SD

Houston, Texas

Jacksonville, Florida

Memphis, TN

Cheyenne, WY

Las Vegas, Nevada

You may also discover much less well-known cities within the 9 “no-income-tax” states. Smaller cities and cities usually provide “high quality of life” benefits, and higher-than-average worth appreciation and development.


Now you already know which states do not tax earnings, and which areas have the bottom property tax charges. Armed with this information, you may concentrate on discovering the very best spot on your subsequent dwelling or actual property funding.