Lowest Property Taxes in U.S.? Alabama

Alabamans pay on average just $477 per person in property and real taxes. That’s one of the many conclusions of this 64-page background paper from the Washington-based Tax Foundation that was released earlier this month. But you already knew that because you read this post at LandReport.com on Alabama’s low tax rates several months ago. Guess which state finished at the bottom of the list?

Way to go New Jersey: $2,642 per capita. Here’s the rundown on the states with the five lowest and the five highest property tax rates:

Lowest Property Taxes:
1. Alabama ($477)
2. Arkansas ($527)
3. New Mexico ($539)
4. Oklahoma ($562)
5. Kentucky ($620)

Highest Property Taxes:
1. New Jersey ($2,642)
2. Connecticut ($2,393)
3. New Hampshire ($2,320)
4. Wyoming ($2,175)
5. New York ($2,124)

According to the report, “Property tax collections per capita are calculated by dividing property taxes collected in each state (obtained from the Census Bureau) by population.“  (page 37)

One other conclusion worth noting:

“Real and personal property taxes are a contentious subject at the state and local levels as individuals and businesses protest rising tax bills caused by revaluations of residential and business property. In fact, the Tax Foundation’s Survey of Tax Attitudes found that local property taxes are perceived as the second most unfair state or local tax.“  (page 35)

Oddly enough, the most unfair state or local tax was nowhere identified in the report.

More Field Reports From The Land Report:

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