The Lowest Real Estate Taxes in the US

Written by Henry Young. Posted in Real Estate

Real estate taxes, also known as property taxes, are some of the costs implied by homeownership. Regardless if you want to sell Nepean real estate or buy a new property in the area, you should always stay informed as to the quantum of these taxes and the manner in which they are calculated. Real estate taxes are determined by two aspects: the location of the property and the value of the property. The local governments set the rate for the real estate taxes, therefore the rates can vary depending on the state. The amount people must pay for their properties is calculated as a percentage of the value of the property, which is another crucial piece of information for concerned owners to find out and take into consideration.

If we look at the data collected by the American Community Survey (ACS) in 2002, we can easily observe that the location of the property is more important the value of the property, when we refer to real estate taxes. The United States Census Bureau conducts the American Community Survey, which is a survey through which it can be determined how federal and state funds are allotted. Each year, approximately 3.5 million addresses are arbitrarily nominated to take part in this survey. Besides the basic financial and demographic questions, the participants in the survey are asked to specify the amount paid for real estate taxes. The amount provided by participants consists of real estate taxes on the entire real estate (which means land and buildings) that are to be paid to all taxing authorities.

We analyzed the average values of homes and the average real estate taxes paid for owner-occupied homes with mortgages and we came to the conclusion that even though District of Columbia and Hawaii had the highest median home values, and Alabama and West Virginia had some of the lowest median home values in the United States, the owners in all the mentioned states paid a very small amount of their home values in real estate taxes.

Below is a list of the lowest real estate taxes paid in 2012 in the United States:

  • Hawaii

Average home value: $496,200

Calculated tax rate: 0.29%

Average real estate tax payment: $1,416

  • Alabama:

Average home value: $142,600

Calculated tax rate: 0.42%

Average real estate tax payment: $597

  • Louisiana:

Average home value: $158,300

Calculated tax rate: 0.52%

Average real estate tax payment: $819

  • Delaware:

Average home value: $233,500

Calculated tax rate: 0.57%

Average real estate tax payment: $1,322

  • South Carolina:

Median home value: $153,000

Calculated tax rate: 0.58%

Median real estate tax payment: $886

  • West Virginia:

Average home value: $119,900

Calculated tax rate: 0.6%

Average real estate tax payment: $711

  • District of Columbia:

Average home value: $464,200

Calculated tax rate: 0.61%

Average real estate tax payment: $2,833

  • Wyoming:

Median home value: $195,700

Calculated tax rate: 0.62%

Median real estate tax payment: $1,216

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