The Best and Worst States for Property Taxes
Median state tax rates can vary considerably.
Looking for a state that doesn't have a property tax is like grabbing binoculars to watch the sky for a unicorn. We've all heard Benjamin Franklin's old quote that nothing is certain in life but death and taxes, and that's especially true for property taxes.
You'll pay them if you own real estate no matter where you live in the U.S., but tax rates are much lower in some states than in others.
The 10 Best States for Property Taxes
A lot of complicated math goes into calculating property tax rates, but the equation ends with a percentage of home value. These percentages are the result of calculations. States compute tax rates according to their own unique formulas, and these formulas can be held pretty close to the vest.
Percentages are a good way to rank the states because they provide a standardized number for comparison. Let’s say that someone in State A pays $10,000 a year in property taxes on a home worth $1 million. Someone in State B pays $10,000 a year on a condo worth $150,000.
The person in State A is paying only 1 percent of his home's value while the person in State B is paying almost 7 percent. The person in State A is getting the best deal, even though they're both paying the same dollar amount.
As reported by Tax-Rates.org, these are the top 10 best states for property taxes as of 2018 in order from lowest to highest rates.