States With The Lowest Property Taxes In 2022

Property taxes are tricky. Property tax rates can vary by county, municipality, township and school district. Another interesting aspect of property taxes is the terminology and the way they are often calculated. In many states, counties use what is called the millage rate, in which a mill’s tax rate represents a tax liability of $1 per $1,000 of the assessed value of the property—one-thousandth, hence the term “mill”.

Thus, when it comes to locating the states with the lowest estate taxes, there is no statewide estate tax rate against which the states can be ranked. Instead, the best way to identify the states with the lowest estate taxes The effective property tax rate is to be determined: the actual dollar amount paid in real estate taxes as a percentage of a state’s median home value.

In a recent study, credit deeds Analyzed all 50 US states to determine which states had the lowest taxes. The study took into account personal income tax rates, state sales tax rates and effective property tax rates, the latter calculated based on the average amount of real estate taxes paid and the median home value. Census Bureau’s 2020 American Community Survey Five-Year EstimatesLatest available data.

read to know States with Lowest Property Taxes in 2022,

10 states with the lowest property taxes

The 10 states with the lowest property taxes are an interesting mix geographically. Five of the 10 states are located in the US South region, as designated by the Census Bureau. Four of the 10 states with the lowest property taxes are located in the US Mountain Division. And one state is located in the Pacific. The 10 states with the lowest property taxes are detailed below:

1. Hawaii

Paying Median Real Estate Taxes: $1,788

Average home value occupied by the owner: $636,400

effective property tax rate: 0.281%

2. Alabama

Paying Median Real Estate Taxes: $608

Average home value occupied by the owner: $149,600

effective property tax rate: 0.406%

3. Colorado

Paying Median Real Estate Taxes: $1,868

Average home value occupied by the owner: $369,900

effective property tax rate: 0.505%

4. Louisiana

Paying Median Real Estate Taxes: $926

Average home value occupied by the owner: $168,100

effective property tax rate: 0.551%

5. South Carolina

Paying Median Real Estate Taxes: $962

Average home value occupied by the owner: $170,100

effective property tax rate: 0.566%

6. Delaware

Paying Median Real Estate Taxes: $1,468

Average home value occupied by the owner: $258,300

effective property tax rate: 0.568%

7. Nevada

Paying Median Real Estate Taxes: $1,660

Average home value occupied by the owner: $290,200

effective property tax rate: 0.572%

8. West Virginia

Paying Median Real Estate Taxes: $719

Average home value occupied by the owner: $123,200

effective property tax rate: 0.584%

9. Utah

Paying Median Real Estate Taxes: $1,837

Average home value occupied by the owner: $305,400

effective property tax rate: 0.602%

10. Wyoming

Paying Median Real Estate Taxes: $1,380

Average home value occupied by the owner: $228,000

effective property tax rate: 0.605%

In general, the US South and West have lower effective property tax rates than the Midwest and Northeast. Indeed, the difference between the 10 states with the lowest property taxes and the states in the Midwest and Northeast is striking.

While the median real estate tax in Hawaii was $1,788 against the average owner-occupied home value of $636,400, the median real estate tax against the average owner-occupied home was $8,489, for an effective property tax rate of 0.281% in New Jersey. Home value of $343,500, equivalent to an effective property tax rate of 2.471%. In the Midwest, Illinois has the highest property taxes: With an average of $4,529 in real estate taxes paid against the average owner-occupied home value of $202,100, Illinois’ effective property tax rate is 2.241%.

You can find out where your state ranks by seeing Full report of the states with the lowest taxes in 2022,