States With No earnings Taxes & States With Low property Taxes

Real Estate Investing & property Tax Rates

In the United States, property tax is assessed by local government at the municipal or county level. The property tax assessment is based on two values--the value of the land, and the value of the building. Since property tax is calculated at a local-level--and since changes occur frequently--it's tricky to settle the exact spots where property tax is the lowest. However, the following data should help you find areas with high appreciation And low property taxes.

Knox County Personal Property Tax

Which States Have the lowest property Tax Rates?

County tax rates are often averaged into a singular figure, and this estimate is used when comparing property taxes between states. Surprisingly, Wyoming has the lowest property tax rates. Unfortunately, property values in Wyoming tend to be pretty depressed, due to low habitancy influx and a lack of jobs. Also, Wyoming does not rank very when it comes to appreciation rates for residential and market real estate. Just because an area has low property taxes does not mean it will be the best area to invest in (or relocate to).

What to Look For When Investing

Look for an area that has a consistent rate of real estate appreciation, combined with fairly low property taxes. Often, local property tax rates are low because real estate appreciation in the area is low--so you need to be careful. Cities settled next to universities and areas where businesses are relocating are usually perfect spots to buy real estate. Paying concentration to habitancy increase can help you spot real estate trends and make wiser investments.

Medium-Sized Cities With the lowest property Tax Rates

According to data gathered by the Office of the Cfo in Washington, D.C., the following cities have the lowest property tax rates in 2006, based on an every year earnings of ,000. Assuming you earn ,000 annually, here are the property tax amounts you would pay in each city...

Birmingham Al -- 8

Cheyenne Wy -- ,108

Phoenix Az -- ,248

Wichita Ks -- ,309

Denver Co -- ,362

Charleston Wv -- ,395

Oklahoma City Ok -- ,538

Kansas City, Mo -- ,595

Little Rock Ar -- ,648

Louisville, Ky -- ,713

Jacksonville Fl -- ,744

Honolulu Hi -- ,781

Billings Mt -- ,864

Salt Lake City, Ut -- ,904

Virginia Beach Va -- ,918

Jackson Ms -- ,971

Charlotte, Nc -- ,021

Boise, Id -- ,176

Columbia Sc -- ,214

Las Vegas Nv -- ,225

Sioux Falls Sd -- ,228

New Orleans, La -- ,231

Wilmington De -- ,416

Memphis Tn -- ,501

Albuquerque Nm -- ,517

Houston Tx -- ,861

The relationship between State earnings Taxes & property Tax Rates

States with no earnings tax (see list below) usually have high property tax rates in their respective counties (The state needs to get its earnings from somewhere!). However, the trade-off is that you will have zero taxes on all earned income. This can be a huge advantage. Instead of paying the state 7 to 15 percent (or more) of your income, you can keep your hard-earned money, and invest it back into real estate or other investments. There are currently nine states that do not tax earnings at the state level.

States With No earnings Tax

Alaska

Florida

Nevada

South Dakota

Texas

Washington

Wyoming

New Hampshire*

Tennessee*

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

How To Find the Best of Both Worlds: Low property Tax & No State earnings Tax

If you're seeing for the best of both worlds (low property tax and no state earnings tax), you may want to reconsider the following cities:

Sioux Falls, Sd

Houston, Texas

Jacksonville, Florida

Memphis, Tn

Cheyenne, Wy

Las Vegas, Nevada

You can also study less familiar cities in the nine "no-income-tax" states. Smaller towns and cities ordinarily offer "quality of life" advantages, and higher-than-average price appreciation and growth.

Conclusion

Now you know which states don't tax income, and which areas have the lowest property tax rates. Armed with this knowledge, you can focus on seeing the best spot for your next home or real estate investment.

States With No earnings Taxes & States With Low property Taxes