Tired of Paying Municipal Taxes? Here’s How You Could Avoid It and Still Own a Property in the US

Posted June 29, 2023 by Michelle Obrien in Home

When it comes to buying your home, the last thing you want to do is to get stuck in a situation where you are paying more than you expected in property tax. Luckily, there are plenty of states that have different rules and regulations regarding property taxes, so it’s good to do a bit of research into which places are the lowest for your particular situation. If you want to know a bit more about which states are the best for low property taxes, keep reading to see how you can avoid property taxes and still own a home in the US.

Are There Any Ways I Can Avoid Paying Property Tax Completely?

All states require you to pay property taxes if you own a property, but there are a few exemptions depending on where you live and what your particular situation is like. Let’s look at a few of the most common ways you can become exempt from paying your property taxes.

Veterans:

Veterans rarely have to pay property taxes on property that’s in their name. Most states offer exemption for disabled veterans but others offer it for all veterans, regardless of their health. It varies quite a bit from state to state so have a look at what the regulations and amounts are for the specific state you’re considering.

Disabled Citizens:

Many states also have different programs that disabled individuals can apply for to reduce or eliminate their property taxes. This also varies quite a bit by state and some states require different paperwork than others, so it’s worth looking into before you choose to move.

Age-Related Exemptions:

Some other states try to entice retirees by offering reduced taxes for the older demographic. The age and amount will change by state, but they are typically made for those that are over the age of 65.

Other Tax Exemptions:

There are a few other cases where you can buy a property without paying property taxes, but these cases are fairly rare and they typically don’t apply to residential properties that will be lived in full time. Religious organizations, non-profit organizations, and property owned by the government are all typically exempt from any property taxes.

Places With the Lowest Property Taxes in 2023

Source: https://taxfoundation.org/2023-sales-taxes/

There are many states that boast low property taxes for different reasons. Let’s have a look at the best cities to consider if you want your property taxes to remain low. The average property tax rate in the country is sitting at around 1.19% so anything lower than that is a good number.

Honolulu, Hawaii – 0.27%

Hawaii is well known for being a popular tourist destination, but it’s also a great place to consider if you want to live in a beautiful area with low property taxes. They have some of the lowest in the country and you get the added bonus of, well, living in Hawaii! This beautiful area is a beach lovers’ paradise and they have one of the best tourist profits in the country.

Huntsville, Alabama – 0.40%

This delightful Southern state is another place with much lower property taxes and it’s a good place to check out if you want a beautiful home. Many of the Southern states have kept their traditional architectural styles in place, so you can find some of the most amazing-looking homes in the country for much lower prices than you’d expect. Alabama homes are selling with a median value in the low $200K range and they have many different home styles available on the market so it will be easy to find one that suits your needs.

Moore, South Carolina – 0.56%

South Carolina has become a popular place to go for those that want to buy a new home as their home prices are some of the best in the country. Moore is an ideal city to consider if you want to save yourself some money in the long run and stretch your dollar as far as it can go. The median home price for a home in Moore, South Carolina is in the upper $200,000s with a bare minimum tax of 0.56%. and the best part is it has full of incredible homes for sale in this summer.

Wilmington, Delaware – 0.57%

Some states get money from bringing in new businesses and allowing them to open up with limited taxes, and Delaware is one of them. They have much lower corporate taxes than other states, which means it costs far less for a brick-and-mortar business to open up. Wilmington, in particular, has also become a popular place for tourists due to its amazing waterfront scenery and cultural attractions.

Salt Lake City, Utah – 0.62%

Utah is another great place to consider if you want to pay lower taxes on everything as they are one of the few states that don’t require personal property taxes on vehicles. The houses in this state are typically a little higher in price on average, but Utah has started to build up many of its larger cities, like Salt Lake City, with condos and affordable homes.

Reno, Nevada – 0.69%

The state of Nevada receives a large amount of funding through the taxes imposed on their state’s gambling winnings (over $1 billion in taxes was received in 2022!) and they pass those savings onto their residents by imposing a lower property tax rate. This beautiful state has become a hub for major businesses and they have become one of the most popular states for new construction.

These are just a few cities to consider for low property taxes and they are all areas that feature well-priced homes so you don’t have to worry about overpaying for your housing. Property taxes are something that can’t be avoided, but you can likely get a very low rate or even a rebate on your property taxes if you do some research into what is needed. Have a look at some of the beautiful homes available in these cities today if you’re hoping to find somewhere with rock-bottom property taxes.

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