States without income taxes, and the state with a low property tax

Investments in real estate and the tax rate on real estate

In the US, real estate tax is taken into account by local governments at the municipal or county level. Estimation of the real estate tax is based on two values ​​- the value of land and the cost of the building. Because the real estate tax is calculated at the local level – as well as the changes occur frequently – it is difficult to determine the exact place where the property tax is the lowest. However, the following information should help you to find areas with high scores and low property taxes.

In some states, the lowest tax rate on real estate?

Bids are often compared to a single digit taxes in the district, and this number is used when comparing property taxes between states. Surprisingly, in Wyoming, the lowest tax rate on real estate. Unfortunately, the value of real estate in Wyoming, as a rule, very reduced due to low inflow of population and lack of jobs. In addition, Wyoming does not occupy the top rankings when it comes to price increases for residential and commercial real estate. Just because in the area of ​​small real estate taxes, it does not mean that this is the best area for investment (or relocation).

What to look for when investing

Look for an area that has a stable rate of rise in price of real estate in conjunction with relatively low property taxes. Often property local tax rates are low, because the rise in price of real estate in the area is low – so you should be careful. Cities located close to the university, and areas where the business is moving, usually excellent places to buy real estate. Drawing attention to the growing population, you can help to identify real estate trends, and make smarter investments.

medium-sized cities with the lowest tax rates

According to data collected by the Office of the CFO in Washington, DC, the following cities have the lowest rate of real estate tax in 2006, based on an annual income of 75,000 dollars. Suppose that you earn 75,000 US dollars a year, that property taxes that you will pay in each city …

Birmingham AL – $ 988

Cheyenne WY – 1010 dollars

Phoenix AZ – 1248 dollars

Wichita KS – 1309 dollars

Denver CO – 1362 dollar

Charleston WV – 1,395 USD

Oklahoma City, OK – 1538 dollars

Kansas City, Missouri – 1595 dollars

Little Rock AR – 1648 dollars

Louisville, ky – 1713 dollars

Jacksonville FL – 1744 dollars

Honolulu, HI – one thousand seven hundred eighty-one dollar

Bilings MT – 1864 dollars

Salt Lake City, Utah – 1904 dollars

Virginia Beach – 1918 dollars

Jackson TC – one thousand nine hundred seventy-one dollar

Charlotte, North Carolina – 2021 dollar

Boise, ID – 2176 dollars

Columbia SC – 2214 dollars

Las Vegas NV – 2225 dollars

Sioux Falls SD – 2228 dollars

New Orleans, LA – 2231 dollar

Wilmington DE – 2416 dollars

Memphis TN – $ 2501

Albuquerque, NM – 2517 dollars

X & # 39; Euston TX – 2861 dollar

The connection between the income tax and the tax rate on real estate

States that have no income tax (see. The list below) typically have a higher rate of tax on real estate in the respective districts (the state needs to make a profit from!). However, the convenience is that you will have zero taxes on all income earned. This can be a huge advantage. Rather than pay the state from 7 to 15 percent (or more) of your income, you can save your earned money and invest it back into the real estate or other investments. Currently, nine states do not tax income at the state level.

States without income tax




South Dakota




New Hampshire *

Tennessee *

* New Hampshire and Tennessee do not tax the profits, but they do tax capital gains (dividends and interest income).

How to find the best of both worlds: low property tax and no income tax

If you are looking for the best of both worlds (low property taxes and no income tax), you can use the following cities:

Sivski Falls, SD

X & # 39; Easton, Texas

Jacksonville, Florida

Memphis, TN

Cheyenne, WY

Las Vegas, Nevada

You can also explore lesser-known cities in nine states "no income tax." Smaller towns and cities usually offer a "quality of life", as well as increasing the value and growth than the national average.


Now that you know in which States do not tax income and the areas in which the lowest rate of tax on real estate. Armed with this knowledge, you can focus on finding the best place for the next home or investment property.