Property tax is collected from local governments, generally based on the property values. Differnet states rank well with a lowest tax rate, just depending on the type of tax or state, but not all. This tax helps pay for schools, roads, community programs, ect… All the rates can be different for each county and state to state. This can be a forgotten cost for many people when buying a house, so check the cost for the county you would reside in.
Ranking top five states with the lowest property tax rate.
- Hawaii: 0.27%, While that is the lowest in the United States it has one of the highest top tier income tax ranging from 1.4% to 11%. The sales tax rate is 4%.
- Alabama: 0.39%, Income tax rate ranges from 2% to 5% and a sales tax rate is 4%.
- Colorado: 0.49%, Income tax of 4.4% and sales tax of 2.9%.
- Nevada: 0.50%, Income tax 0% and sales tax of 4.6%.
- South Carolina: 0.53%, income tax ranging from 0% to 6.5% and sales tax of 6%
Each state has their way to collect the taxes they need to support their state. Property tax rates may seem low, but thats becuase properties can be so expensive. States with the lowest property tax may get funding through other avenues. Some general categories of taxes are income, sales, and property are the three same main ones.
Wondering what states have the no sales tax? States with No Sales Tax. What states have no income tax? No Income Tax States