Guest Post - Best Counties for Property Taxes

Here is a guest post from RewardExpert that recently did a review of property tax rates, assessment ratios, and exemptions throughout the country to find the counties in different U.S. regions with the lowest tax burden relative to home prices and local incomes. This is a reminder that property taxes are based on many factors and that lots can be gathered from numerous sources of data readily available. It's also a reminder that in some states, the tax base is only a portion of the value (assessment ratio). Someone recently told me that in Georgia only 40% of the assessed value is taxed and then homeowners also get a $2,000 exemption. There are many factors to consider in comparing property taxes on homes.

Every year homeowners have to deal with paying property taxes. While they may be a hassle, property taxes are an important source of revenue for local governments. Nevertheless, no one wants to pay more than they have to, and location can make all the difference. RewardExpert – a free service that helps users take full advantage of credit card and travel rewards – today [5/14/18] released its ranking of the Best U.S. Counties for Property Taxes to help prospective homebuyers determine where they can catch the biggest break on their property taxes. The report breaks down the top five counties in each of the six major geographical regions of the country.  

“Buying a home is a big move and is often a family’s biggest financial investment,” says RewardExpert CEO and co-founder Roman Shteyn, “and it can seem unfair to continue paying for a house that has already been bought and paid for, so choosing the right place to invest can help mitigate long-term expenses.”

The best counties for property taxes by region are:

• #1 in the Northeast is Sussex County, Delaware. The southernmost and most rural of Delaware’s three counties, takes first place in the region due to its assessment ratio: the county levies taxes on only 50 percent of the market value of a property, which reduces its already low 0.75 percent nominal property tax to an effective 0.37 percent rate. As a result, the average tax bill in Sussex County is a very reasonable $1,228.
• #1 in the South Atlantic is Darlington County, South Carolina. Like most states in the region that assess real property at full market value, South Carolina provides for an exemption of the first $100,000 of a home’s assessed value. For an average home in the county, this results in a tax bill based on only $39,000 of the median property value of $139,000: average annual property tax bills in Darlington County are a mere $146.
• #1 in the South Central region is Crawford County, Arkansas.  The South Central region is dominated by counties in the states of Arkansas and New Mexico due to low property assessments. In Crawford County, one of the most populous counties in the Ozarks region of the state, residents enjoy very low property tax bills, which at an average $192 amounts to barely more than one-tenth of a percent of the average home value of approximately $145,000.
• #1 in the Midwest is Grant County, Indiana. With many states in the Midwestern region that have either mandated assessment ratios substantially below 100 percent of fair market value, the degree to which counties in Indiana crowd out very competitive counties in other states is surprising. Grant County has a median sale price of $75,945 for homes in the county, which results in tax bills that are lower here than anywhere else: $24.50 per year for the average county homeowner.
• #1 in the Mountain West is Pueblo County, Colorado. Colorado dominates the region for low property taxes. Residential property is currently assessed at an extraordinarily low 7.96 percent of fair market value. Pueblo County, with its modest property values, boasts exceptionally affordable yearly tax bill of $371 or less, in spite of the fact that an average home in Pueblo County sells for $205,000, and the nominal tax rate is a not insubstantial one percent.
• #1 in the Pacific West is Klamath County, Oregon. Klamath County takes first place for simple and straightforward reasons: it is home to some of the most modestly priced real estate in the region (the median sale price is $194,000), it charges a reasonable tax rate of 1.23 percent, and Oregon has no property transfer tax. While the average tax bill of $2,378 is high compared to counties in other regions, this figure is lower than in any other county in the Pacific West with a population greater than 25,000.

“It’s the ultimate American Dream to own a home,” says Shteyn, “however it requires serious understanding of the full financial implications to ensure you’re making a sound investment. As they say, location is everything when it comes to real estate, and that also applies to property taxes.”

To determine the ranking, RewardExpert analyzed data from federal, state, and institutional sources to determine which U.S. counties have the lowest, most affordable property taxes. In addition to county-specific property tax (millage) rates, the report takes into consideration home prices, average incomes, and state- and county-level policies concerning assessment or equalization ratios.

For further information and to view the full report, visit the RewardExpert website.

What do you think?