Real Estate Investing: Property Taxes

by | Apr 17, 2021 | Investing | 0 comments

Source: WalletHub

One of the first things I like to look at when researching new markets is property taxes. Knowing property taxes of your market is vitally important. It can single handedly make or break your deal. Property taxes can be calculated a lot of different ways, so when you dial down into a market that makes sense for your investing, it’s a good idea to call your county’s assessor’s office and find out how they calculate property taxes.

This chart from Wallet Hub is the 2021 property tax guide per state. Typically taxes vary by county, so while this is a 10,000 foot view, it’s essential to know how your county calculates taxes. That said, though, this is a good place to start!

Real-Estate Property Tax Rates by State

Rank
(1=Lowest)
StateEffective Real-Estate Tax RateAnnual Taxes on $217.5K Home* State Median Home Value Annual Taxes on Home Priced at State Median Value 
1Hawaii0.28%$606$615,300$1,715
2Alabama0.41%$895$142,700$587
3Colorado0.51%$1,113$343,300$1,756
4Louisiana0.55%$1,187$163,100$890
5District of Columbia0.56%$1,221$601,500$3,378
6South Carolina0.57%$1,238$162,300$924
6Delaware0.57%$1,240$251,100$1,431
8West Virginia0.58%$1,269$119,600$698
9Nevada0.60%$1,310$267,900$1,614
10Wyoming0.61%$1,319$220,500$1,337
11Arkansas0.62%$1,358$127,800$798
12Utah0.63%$1,362$279,100$1,748
13Arizona0.66%$1,446$225,500$1,499
14Idaho0.69%$1,492$212,300$1,456
15Tennessee0.71%$1,548$167,200$1,190
16California0.76%$1,644$505,000$3,818
17New Mexico0.80%$1,740$171,400$1,371
18Mississippi0.81%$1,751$119,000$958
19Virginia0.82%$1,779$273,100$2,234
20Montana0.84%$1,818$230,600$1,928
20North Carolina0.84%$1,833$172,500$1,454
22Indiana0.85%$1,853$141,700$1,207
23Kentucky0.86%$1,866$141,000$1,210
24Florida0.89%$1,934$215,300$1,914
25Oklahoma0.90%$1,952$136,800$1,228
26Georgia0.92%$2,006$176,000$1,623
27Missouri0.97%$2,111$157,200$1,526
27Oregon0.97%$2,116$312,200$3,037
29North Dakota0.98%$2,138$193,900$1,906
29Washington0.98%$2,134$339,000$3,326
31Maryland1.09%$2,370$314,800$3,430
32Minnesota1.12%$2,429$223,900$2,500
33Alaska1.19%$2,599$270,400$3,231
34Massachusetts1.23%$2,667$381,600$4,679
35South Dakota1.31%$2,857$167,100$2,195
36Maine1.36%$2,953$190,400$2,585
37Kansas1.41%$3,060$151,900$2,137
38Michigan1.54%$3,343$154,900$2,381
39Ohio1.56%$3,390$145,700$2,271
40Iowa1.57%$3,407$147,800$2,315
41Pennsylvania1.58%$3,442$180,200$2,852
42Rhode Island1.63%$3,548$261,900$4,272
43New York1.72%$3,749$313,700$5,407
44Nebraska1.73%$3,754$155,800$2,689
45Texas1.80%$3,907$172,500$3,099
46Wisconsin1.85%$4,027$180,600$3,344
47Vermont1.90%$4,135$227,700$4,329
48Connecticut2.14%$4,658$275,400$5,898
49New Hampshire2.18%$4,738$261,700$5,701
50Illinois2.27%$4,942$194,500$4,419
51New Jersey2.49%$5,419$335,600$8,362

*$217,500 is the median home value in the U.S. as of 2019, the year of the most recent available data.

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