States with the Lowest Property Tax Rates in 2020

Property taxes are a considerable out-of-pocket cost for homeowners and are highly location-specific. Hawaii will have the lowest property tax rate in 2020, closely followed by Alabama and Louisiana, according to a recent WalletHub analysis. While Alabama and Louisiana have effective property tax rates of 0.42% and 0.48%, respectively, Hawaii has a rate of just 0.27%.

It’s important to keep in mind, though, that there are other costs associated with homeownership that must also be taken into account in addition to the property tax rate. Your budget may also be impacted by other variables including housing prices, income taxes, and sales taxes. Hawaii, for instance, has the lowest property tax rate in the nation but also some of the highest home prices.

You might be curious to discover which states do not tax Social Security if you are a retiree. Currently, Social Security benefits are tax-free in 37 states. These states are Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming. They also include Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, New York, and Wyoming. You can think about moving to one of these states if you want to avoid paying state taxes. It’s crucial to remember that additional taxes, such income and sales taxes, might still have an impact on your spending plan. For instance, you can end up paying higher property or sales taxes if you reside in a jurisdiction without an income tax. Speaking of taxes, Florida has a state sales tax of 6%, while the county may have a different amount. The total sales tax can be as high as 8.5% and local sales taxes can be as low as 0.5% and as high as 2.5%. Contrarily, Connecticut does not levy municipal sales taxes and has a state sales tax of 6.35%.

In conclusion, Hawaii, Alabama, and Louisiana will have the states’ lowest property tax rates in 2020. It’s important for retirees to be aware that 37 states do not impose taxes on Social Security income. However, it’s crucial to take into account additional taxes, such income and sales taxes, when calculating the total cost of homeownership. While Connecticut has a state sales tax of 6.35% and no local sales taxes, Florida has a state sales tax of 6%.