States without income tax and low-income taxpayers

Real estate investment and property tax rates

In the United States, property tax is assessed by local governments at the municipal or county level. The assessment of property tax is based on two values ​​- the value of the land and the value of the building. Since property tax is calculated at the local level – and as changes occur often – it is difficult to determine the exact places where the property tax is the lowest. However, the following information should help you find areas with high prices and low property taxes.

Which countries have the lowest rates of property tax?

County tax rates often focus on one figure, and this number is used to compare property taxes between countries. Surprisingly, Wyoming has the lowest rates of property tax. Unfortunately, the value of real estate in Wyoming tend to be rather depressing, due to the low population inflow and lack of jobs. Also, Wyoming is not highly ranked when it comes to rates of appreciation for residential and commercial real estate. Just because the area has low property taxes does not mean that it will be the best investment area (or relocation in).

What to look for when investing

Look for an area that has a consistent real estate valuation rate combined with pretty low property taxes. Often, local tax rates on property are low, because the percentage of real estate in the area is low – so you need to be careful. Cities adjacent to universities and areas where businesses relocate are usually great places to buy real estate. Paying attention to population growth can help you to see real estate trends and make wise investments.

Medium-size cities with the lowest rate of property tax

According to data collected by the Financial Director's Office in Washington, the following cities have the lowest rates of property tax in 2006, based on an annual income of $ 75,000. Assuming you earn $ 75,000 a year, here are the amounts of property tax that you would pay in each city …

Birmingham AL – $ 988

Cheyenne WY – $ 1,108

Phoenix AZ – $ 1,248

Wichita KS – $ 1,309

Denver CO – $ 1,362

Charleston WV – $ 1,395

Oklahoma City OK – $ 1,538

Kansas City, MO – $ 1,595

Little Rock AR – $ 1,648

Louisville, KY – $ 1,713

Jacksonville FL – $ 1,744

Honolulu HI – $ 1,781

Billings MT – $ 1,864

Salt Lake City, UT – $ 1,904

Virginia Beach VA – $ 1,918

Jackson MS – $ 1,971

Charlotte, NC – $ 2,021

Boise, ID – $ 2,176

Columbia SC – $ 2,214

Las Vegas NV – $ 2,225

Sioux Falls SD – $ 2,228

New Orleans, LA – $ 2,231

Wilmington – $ 2,416

Memphis TN – $ 2,501

Albuquerque NM – $ 2,517

Houston TX – $ 2,861

The link between state income taxes and property tax rates

Countries that do not have income tax (see the list below) usually have high property tax rates in their respective counties (the state must get its income somewhere!). However, the compromise is that you will have a zero tax on all earned income. This can be a great advantage. Instead of paying the state 7 to 15 percent (or more) of income, you can keep your hard-earned money and return it to real estate or other investments. At the moment, there are nine states that do not tax income at the state level.

Countries without income tax




South Dakota




New Hampshire *

Tennessee *

* New Hampshire and Tennessee do not taxed earned income, but they tax capital gains (division and interest income).

How to find the best from both worlds: low property tax and income tax

If you are looking for the best of both worlds (low property tax and income tax), you may want to consider the following cities:

Sioux Falls, SD

Houston, TX

Jacksonville, Florida

Memphis, TN

Cheyenne, WY

Las Vegas, Nevada

You can also explore lesser-known cities in nine states that do not have a tax on income. Smaller cities generally offer the benefits of "quality of life", while increasing prices and growth from an average.


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

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