Which States Have the Lowest Property Taxes?
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OK, so you want to go off the grid and live on the fat of the land or you may just be looking for a great place to retire. Whatever the reason most of us would like to keep our property tax bills as low as possible. No other taxes are as unfair as property taxes. Furthermore, don't think that just because you rent your place that you are off the hook..the property taxes get passed down to you too. Property taxes aren't based on your income, nor are they based on a choice to buy a product, nope...whether you can afford them or not, rich or poor, employed or unemployed, fixed income or trust-fund baby if you own property the tax man cometh!
Moreover, if you are looking to live off the grid property taxes can really be a problem. After all, how much freedom can you have if you are forced into coming up with a high monthly tax bill? Think about it. You have no electric bills, no heating bills, no food bills, no mortgage and no credit card bills. You are able to house and feed yourself without having to get a job, maybe you are retired or maybe you have a small family and are the sole provider, maybe you are collecting social security or maybe you have a small pension but if your property tax bill is $500 or more a month it can really affect your standard of living and throw a wrench into the whole idea of off the grid independence.
So what is a freedom loving, independent, off-the-grid, retiree to do? Well, first of all some states are better than others. Property taxes in the lowest states are on average less than $1,000 per year (some way less) while in the highest taxed states homeowners can pay 6 to 8 times that amount.
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The following states are considered by Kiplinger.com to have the lowest property tax bills in the country:
Arizona
New Mexico
West Virginia
Alabama
Louisiana
However if you don't want to move to one of those states there is one other small glimmer of hope and it is called a property tax circuit breaker.
What is a Property Tax Circuit Breaker?
A property tax circuit breaker is a law in the state property tax code that either tops off or refunds a property owners taxes when the tax burden exceeds a percentage of the owners income. The term circuit breaker comes from the engineering term that means to shut off power before overloading the system, similarly the property tax circuit breaker shuts down taxes before they overwhelm the tax payer, nice huh?
There are 35 states that have property tax circuit breaker provisions in their state law, 23 of them have additional requirements like age or disability. If you are not elderly or disabled you might want to focus on the 12 states including the District of Columbia that have no such requirements to locate your off-grid homestead.
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Those 12 states are:
Montana
Minnesota
Wisconsin
Michigan
Maine
Vermont
New Hampshire
New York
West Virginia
Maryland
New Jersey
Rhode Island
and the District of Columbia
The 15 states that have no property tax circuit breaker provisions at all are:
Texas, Arkansas, Louisiana, Mississippi, Alabama, Florida, Georgia, Tennessee, South Carolina, Virginia, Indiana, Ohio, Kentucky and, Alaska and Hawaii
Each state is unique in it's allocation of circuit breaker provisions. And while these 12 states (plus DC) base their provisions on income that doesn't mean that if you are elderly or disabled you wont get a bigger break. Not only that but unfortunately laws can change and with the ongoing economic depression some states may do away with the circuit breaker provision altogether. Therefore, even though property taxes may be one aspect when deciding where to locate they should not be your sole consideration for moving. There are 36 states that don't tax social security benefits, that means that there are 14 states that do. If you are depending upon social security you might want to avoid those states as well.
Those states are: Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Utah, Rhode Island, Vermont and West Virginia.
All in all I hope this bit of
information helps you to make an educated decision as to where to locate your off-grid homestead, spend your retirement or just avoid giving your hard earned money to the government, Ciao!
Wow, N. Dakota to vote on Abolishing Property Taxes in 2012
- Is It Time To Move To North Dakota? in [Market-Ticker]
MarketTicker Forums - Discussions About Investing
- Property tax bills anger Cook County homeowners | The Chicago Local - Yahoo! News
Read 'Property tax bills anger Cook County homeowners' from our blog The Chicago Local on Yahoo! News. CHICAGO (CBS) — It's sticker shock in the mail. Tax bills went out to Cook County homeowners this week and the big jump in the amount due to many h
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Nice presentation. I grimmaced a bit when I found my state among the "don'ts." Gives me a new issue to work on though.
Thanks for an excellent post Brie.
The Frog
Great job. I live in New Jersey, need I say more?
Thanks gguy, The Frog Prince and breakfastpop...yeah it looks like New Jersey is one of the worst all right but since a lot of my fans wont be going off the grid in New Jersey it might not be so bad for them :) But, if I were retiring I'm not sure I'd stay there. Anyway, I am glad you like it and I hope it helps someone somewhere.
Yes but we have culture, New Jersey Housewives and Jersey Shore!! LOL
That's why I am buying property and Southwest Florida,at 90% off 2005 prices and looking at the Carolinas also, and trying to get my income totally online in 5 years.
GREAT Hub Brie!
I had no idea some states offered a "tax circuit breaker!" I will certainly pass your Hub on to some of my friends struggling to keep their roof over their head!
In California most homeowners can fill out a simple form at their County Assessor's Office and get a 10% reduction in their property taxes without much problem! Every little bit helps!
For a large tax reduction, based on the reduced value of a home in this economy, it's slightly more work and takes a few months! But well worth it for a 50% reduction!
I too, envision living off the grid in time! I think many of us are returning to organic gardening and collecting rainwater and installing solar!
Thanks for your great information! Rated up as always!
Blessings, EarthAngel!
Thanks Earth Angel
I've never heard of it here. Is that the same as the "homeowners exemption"? Where you pay less taxes in a home own and live in as opposed to a home you own as a rental?
Great Hub Brie,
- Best Wishes,
- Harlan
No, in Idaho it is limited to age and disability. Thanks for commenting.
This is an excellent hub. You did a wonderful job gathering all of this information. Thanks!
Thanks Jalus, yea it took me a bit of time for this one.
Good job as usual Brie. I live in NC. According to the chart it appears we are in the middle of your bracket. We also have high gas taxes.
Yea, I'm not impressed with NC, there are better states. Thanks for commenting.
Interesting, a lot of people say N.C. and Colorado are the best two states, another thing to check is homeowners insurance, I understand it's through the roof in Florida now.
I don't plan on ever having a mortgage again but yeah I would imagine that it would be high in Florida because of the hurricanes. Personally, I wouldn't move to NC or CO.
Brie, I like this hub because the more answers we have, the more questions we get. If I build in Florida, I would build close to hurrican proof all concrete since I am in the building business. I wonder if "liability only" insurance is available for trip and falls, swimming pool accidents etc is available. I would have no mortgage so no bank to tell me I need it.
Don't know about that...I still wouldn't live in Florida because of HAARP. I don't think anyplace near the coast is a good place. Even if your house stands...what good will it do if everything around you is devastated?
Yes, that is a concern, I checked out the insurance though, it appears to be available in case anyone is interested.
Good to know, thanks.
Thank-you for doing all hard work for the people who want to move or are thinking about moving. This will be very useful for them, it was for was for me. Looking to relocate and this will help me.
Have A Good Day !
Glad to be of some help. Most of my articles are about things that I am interested in, so I figure if I'm interested other people must be as well. Thanks for commenting.
Hello Brie, In Illinois taxes are based by county. I live in Clay County, south central area, own 24 acres with electric,and rural water,30x50 pole type barn newly built, converting into home. Taxes are less than $500 per year. Reasonable weather all year around not bad
In northern New Jersey the taxes on that would be $25,000.00- $50,000.00
Wow 45-70! Do you have a special deal? Thanks for the information. Will they go up when you convert that barn into a home? If so, do you know how much?
Yes, is that considered a farm assessment?
Taxes on the pole barn house will go up some because of living space-home site. It will still be under $1,000 per year. If I put regular siding on instead of metal it will go up to estimated to $2500. double wide modular homes are about cheapest tax based structure you can have app. around $400-$1000 per year
Hmmm...good prospects. But my bank wouldn't lend me any more money.:-)
Air, today, sometimes you can get a land owner to hold paper if you want to get your foot in the door to get started. Also in rural areas, you need to remember the cost of well and septic, it can get costly depending on site conditions.
Hi there - just wanted to let you know "Main" has an "e" on the end.
LOL...thanks :)
Good info! I myself live in Illinois and pay $6,000 a year in taxes and it's killing us! I guess that's the price I pay for wanting to stay close to my family.
You have to convince your family to relocate with you!
I noticed all 12 ciruit breaker states you posted have cold winters. People might want to figure energy costs into these area's. Fuel oil and gas is expensive. It would be nice to retire to a place that does not require alot of heat.
You should also note that just because a state is a circuit breaker state that doesn't mean that is has the lowest taxes. Look at the map...Alabama is not a circuit breaker state but they have some of the lowest taxes (property) in the country. So don't just assume that because of the circuit breaker that is the very lowest of property taxes. Personally, I like Idaho because it is very low and the weather is pretty mild.
What's so bad about living in Colorado?
Personally, I wouldn't pick CO because the property is expensive there and in some parts you don't get enough rain. But, to each his own.
This is a very informative Hub and is a great resource for anyone who might be thinking of moving to a new state.
Thanks Jeff, I hope you voted it up! :)
I love how so many people from different states (U.S.) are connected via this Hub! :)
It's a big movement..the off the grid movement. Thanks for writing.
very useful info, I didn't realize that some states do not tax social security. I live in CT which we affectionately call connecti-tax.
Yes, there are lots of things to consider..it can be dizzying!
Thanks for this valuable information.
You're very welcome Lulu
A nice informative Hub, thank you. Living in NYS we pay pretty much every kind of tax the Government can imagine so any relief is a blessing. I'll have to see whether we can get this worked out or not.
Is it any wonder considering the chief thieves live here? I'm speaking of the CFR.
NYC has a lot of hidden taxes, in the gas appliance industry, we need an MEA number for NYC, it's simply a tax on the manufacturer in order to sell in the city. We charge double to triple to work in the city because of the added expenses!!!
Yea, it's ridiculous here.
Last week it took 2 hours to find a free paking space in the area of east 71st
Ha that's where I live 71st and Park. But I don't have a car.
I believe it.
Nice area, we just finished on 71st between park and lex, it has a large blue sidewalk shed on it
Cool, I walk by it all the time...small world!
Yes it is!!!
You may have passed me!!! LOL
Once, in NY, I was on match.com and this guy recognized me..he had, I don't know, winked at me (you know how those are) and I found out he lived across my wall..on the other side of my apartment wall. NYC is smaller than it seems.
LOL, Funny, I was just gonna say "what is a city girl like you doing home on a friday night??" LOL
Saturday is my Friday.
Just kidding by the way, we were doing marble mantles at that job by the way, I can send pix if you like of project.
That would be cool
Why? I donot think so.
Why what?
We are paying huge taxes against our property. but this information is very useful. Thanks for all this.
Property taxes are a total rip off..as are most all taxes!
Wonderful information. Looks as if it is impossible to get away from Govt. intervention anywhere. Sad state of affairs!
Yes..and its getting worse everyday.
I agree with you and appriciate your efforts about this issue of tax. Good work
Thanks Arik
Thank you for your analysis Brie! I think it is clear that I will need to move to Arizona now. Who is coming with me? To tell ya the truth, I don't think I would miss cold and snowy winters one bit! AZ here I come, just keep the scorpions away. Anything else I should look out for?
Just keep an ear open for changes in laws..happens all the time now.
Brie, here is an interesting point of view on taxes in general, my brother thinks all business taxes should be eliminated and should be transfered to income taxes, it sounds crazy, but here is his reasoning.
Business taxes are really just a way for the government to tax people without them knowing it since it becomes part of the overhead. If people really knew what they were paying, the would demand change. Lets say you buy a loaf of bread for $4.00. The suppliers of raw materials are paying taxes, the baker is paying taxes, on fuel, real estate employees etc. The company that delivers it are paying fuel tax, tax on their phones, tax on vehicles tax on vehicle maintenance, tax on employees etc etc etc, the store has all the same taxes, plus sales tax on the bread in some states, so how much of the $4.00 is taxes? we don't know, it could be 20 cents, or it could be $2.00. Have a good weekend!!
Personally, I think 95% of all taxes are unnecessary! The reason we have taxation is because criminals are running the government and they are shaking us down either for wars (that are contrived and illegal) or for bogus projects or for illegal interest.
Taxes are also used for the betterment of people. We should pay taxes if we comes in the category of tax paying people. Its our duty.
Thanks for the laugh!
Oregon has moderate property taxes (compared to some) but they have NO state sales tax. So if you make any big purchases,that makes some difference, too.
Well yea compared to New York or New Jersey but still Oregon's property taxes are too high IMHO.
Brie, what a great hub! I was very glad to see Arizona as one of the few low priced property tax states. Originally from California, it seems like a peaceful place to live and or invest in.
Yes, but just make sure you can get water..that's the main thing in AZ. Good luck and thanks for the fab fan mail note!
Excellent hub! I didn't mind paying high property taxes in WI because the schools were fabulous. But it's unclear what we're getting for our high property taxes here in Western NY ... the tax rate is higher, but the schools perform worse. Its a matter of getting what you pay for.
All taxation is a form of slavery. The public schools are nothing but indoctrination camps for our children.
Thanks for commenting.
Additional Resources on Property Taxes
- http://www.hawaii247.com/2010/10/01/new-census-data-on-homeowner-property-taxes/
MEDIA RELEASE The Census Bureau has released new housing numbers courtesy of the 2009 American Community Survey (ACS), which includes real estate taxes paid on owner-occupied housing units. Data is ... - Circuit Breaker Property Tax Credits | Tax Credits for Working Families
Circuit Breakers are a type of tax credit that provides relief to residents whose property tax payments are a large percentage of family income. 19 states have - Taxes by State
A comparative guide to state taxes nationwide, including income, fuel and sales taxes, retirement income taxation, senior tax exemptions, homestead exemption, property taxes, inheritance and estate taxes. Compare states to find where to retire. - State-by-State Guide to Taxes on Retirees, 2010-2011
gguy 13 months ago
Brie, nice job here, as I live in New Jersey the highest taxed state in the country. There are a few other tips though I live in a very affluent town but in one of the smallest houses, a two bedroom cottage of about 1000 square feet, on a smaller lot, but back up to 14 acres of greenspace so it is very private it should stay that way. I pay under $4000.00 a year which is almost unherd of in Bergen County, most of the house in this town pay between 10,000-$20,000 in taxes, so the lession here is there may be an individual property that works for you.
We also have strict one family zoning, however people over 62 can add a small rental apartment to help offset there tax bill. Once again careful research needed here. Thank You for the great hub!