(STACKER) – Ask any homeowner about expenses and they’ll tell you: If you’re a first-time buyer, you need to carefully calculate the total cost of owning a home before taking the plunge into homeownership.
Owning a home comes with dozens of additional costs, from mortgage payments and interest to upkeep, renovations, and household utility bills. It doesn’t take long before expenses costs add up—especially when they come on top of potential property tax costs.
To determine which states offer the lowest in property taxes, Roofstock analyzed 2021 data from Wallethub and the U.S. Census Bureau. Costs were then determined for real estate property tax rates, median real estate tax payments, and median home prices for every state and Washington D.C. These amounts were then contextualized with what first-time homebuyers need to know about property taxes.
In some states, the high cost of property taxes can cause a home with an otherwise affordable price tag to be well out of someone’s price range. In others, the low cost of property taxes could give you a little more wiggle room in your budget—which is never a bad thing.
If the idea of weighing the estimated costs of property taxes seems overwhelming to you, start by looking at the states with the lowest property taxes listed below. The list is reverse-ordered by effective real estate tax rate, with Hawaii as the state with the lowest property taxes, though the results would look different if it was ordered by the taxes on the state’s median home. Whether you’re looking for a dream home or next big investment, owning a home comes with several additional costs, property taxes being one of them.
25. Oklahoma
– Effective real estate tax rate: 0.90%
– Annual taxes on $217.5k home: $1,952
– Oklahoma’s median home value: $136,800
– Annual taxes on Oklahoma’s median home: $1,228
24. Florida
– Effective real estate tax rate: 0.89%
– Annual taxes on $217.5k home: $1,934
– Florida’s median home value: $215,300
– Annual taxes on Florida’s median home: $1,914
23. Kentucky
– Effective real estate tax rate: 0.86%
– Annual taxes on $217.5k home: $1,866
– Kentucky’s median home value: $141,000
– Annual taxes on Kentucky’s median home: $1,210
22. Indiana
– Effective real estate tax rate: 0.85%
– Annual taxes on $217.5k home: $1,853
– Indiana’s median home value: $141,700
– Annual taxes on Indiana’s median home: $1,207
21. North Carolina
– Effective real estate tax rate: 0.84%
– Annual taxes on $217.5k home: $1,833
– North Carolina’s median home value: $172,500
– Annual taxes on North Carolina’s median home: $1,454
20. Montana
– Effective real estate tax rate: 0.84%
– Annual taxes on $217.5k home: $1,818
– Montana’s median home value: $230,600
– Annual taxes on Montana’s median home: $1,928
19. Virginia
– Effective real estate tax rate: 0.82%
– Annual taxes on $217.5k home: $1,779
– Virginia’s median home value: $273,100
– Annual taxes on Virginia’s median home: $2,234
18. Mississippi
– Effective real estate tax rate: 0.81%
– Annual taxes on $217.5k home: $1,751
– Mississippi’s median home value: $119,000
– Annual taxes on Mississippi’s median home: $958
17. New Mexico
– Effective real estate tax rate: 0.80%
– Annual taxes on $217.5k home: $1,740
– New Mexico’s median home value: $171,400
– Annual taxes on New Mexico’s median home: $1,371
16. California
– Effective real estate tax rate: 0.76%
– Annual taxes on $217.5k home: $1,644
– California’s median home value: $505,000
– Annual taxes on California’s median home: $3,818
15. Tennessee
– Effective real estate tax rate: 0.71%
– Annual taxes on $217.5k home: $1,548
– Tennessee’s median home value: $167,200
– Annual taxes on Tennessee’s median home: $1,190
14. Idaho
– Effective real estate tax rate: 0.69%
– Annual taxes on $217.5k home: $1,492
– Idaho’s median home value: $212,300
– Annual taxes on Idaho’s median home: $1,456
13. Arizona
– Effective real estate tax rate: 0.66%
– Annual taxes on $217.5k home: $1,446
– Arizona’s median home value: $225,500
– Annual taxes on Arizona’s median home: $1,499
12. Utah
– Effective real estate tax rate: 0.63%
– Annual taxes on $217.5k home: $1,362
– Utah’s median home value: $279,100
– Annual taxes on Utah’s median home: $1,748
11. Arkansas
– Effective real estate tax rate: 0.62%
– Annual taxes on $217.5k home: $1,358
– Arkansas’s median home value: $127,800
– Annual taxes on Arkansas’s median home: $798
10. Wyoming
– Effective real estate tax rate: 0.61%
– Annual taxes on $217.5k home: $1,319
– Wyoming’s median home value: $220,500
– Annual taxes on Wyoming’s median home: $1,337
9. Nevada
– Effective real estate tax rate: 0.60%
– Annual taxes on $217.5k home: $1,310
– Nevada’s median home value: $267,900
– Annual taxes on Nevada’s median home: $1,614
8. West Virginia
– Effective real estate tax rate: 0.58%
– Annual taxes on $217.5k home: $1,269
– West Virginia’s median home value: $119,600
– Annual taxes on West Virginia’s median home: $698
7. South Carolina
– Effective real estate tax rate: 0.57%
– Annual taxes on $217.5k home: $1,238
– South Carolina’s median home value: $162,300
– Annual taxes on South Carolina’s median home: $924
6. Delaware
– Effective real estate tax rate: 0.57%
– Annual taxes on $217.5k home: $1,240
– Delaware’s median home value: $251,100
– Annual taxes on Delaware’s median home: $1,431
5. District of Columbia
– Effective real estate tax rate: 0.56%
– Annual taxes on $217.5k home: $1,221
– District of Columbia’s median home value: $601,500
– Annual taxes on District of Columbia’s median home: $3,378
4. Louisiana
– Effective real estate tax rate: 0.55%
– Annual taxes on $217.5k home: $1,187
– Louisiana’s median home value: $163,100
– Annual taxes on Louisiana’s median home: $890
3. Colorado
– Effective real estate tax rate: 0.51%
– Annual taxes on $217.5k home: $1,113
– Colorado’s median home value: $343,300
– Annual taxes on Colorado’s median home: $1,756
2. Alabama
– Effective real estate tax rate: 0.41%
– Annual taxes on $217.5k home: $895
– Alabama’s median home value: $142,700
– Annual taxes on Alabama’s median home: $587
1. Hawaii
– Effective real estate tax rate: 0.28%
– Annual taxes on $217.5k home: $606
– Hawaii’s median home value: $615,300
– Annual taxes on Hawaii’s median home: $1,715
