States with No Property Taxes

May 3, 2023

Property taxes are one of the most common sources of revenue for states and local governments in the United States.
These taxes are levied on the assessed value of real property, including land, buildings, and other structures. While
property taxes are a crucial source of funding for state and local governments, they can also be a significant burden for
homeowners, especially in states with high property tax rates.
In this article, we will explore what property taxes are, why they vary by state, and which states have no or low property
taxes. We will also discuss the advantages and disadvantages of living in a state with low property taxes and what to
consider when deciding where to live.
What are property taxes and why are they important?
Property taxes are taxes levied on real estate, such as homes, land, and buildings. These taxes are usually collected by
local governments and used to fund various public services such as schools, police forces, and fire departments. Property
taxes are a significant source of revenue for local governments in the United States, making up the bulk of their total tax
Property tax rates can vary widely between states and regions in the United States. This is because property tax rates are
set by local governments in cities, counties, and school districts. States with higher property taxes tend to have more
robust public services and infrastructure, such as better schools, roads, and parks. In contrast, states with lower property
taxes may have fewer public services and infrastructure, but their residents may benefit from lower housing costs.
States with low or no property taxes
There are no states with zero property taxes because property taxes are a critical source of revenue for local governments
to fund public services and infrastructure. Eliminating property taxes entirely would require alternative revenue sources to
be identified, which could be challenging for local governments.
That being said, there are states with very low property taxes. Here are the top three states with the lowest property taxes:
● Hawaii: Hawaii has the lowest effective property tax rate in the United States, with an average rate of just 0.27%.
However, it’s worth noting that the state also has some of the highest home values in the country, so homeowners
in Hawaii may still pay a significant amount in property taxes.
● Alabama: Alabama has the second-lowest effective property tax rate in the country, with an average rate of just
0.33%. This is due in part to the state’s low property values, which helps keep property taxes low.
● Louisiana: Louisiana is another state with low property taxes, with an average rate of just 0.55%. The state also
offers various property tax exemptions and credits to help lower property tax bills for homeowners.
It’s worth noting that while these states have low property tax rates, they may also have other taxes and fees that could
offset the savings from low property taxes. Additionally, low property taxes may come at the expense of public services and
infrastructure, which could affect the quality of life in these states.
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Island. Contact us or call Kim today at 516-236-6303 to start the process of finding your dream home.