How High Are Property Taxes in Your State?

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By on April 30, 2017 in Retirement with 0 Comments

If you are planning on relocating to another state in retirement, one important factor to consider is the state’s tax laws. Knowing the property tax rates in a state and to what extent the state relies on property tax revenues can be helpful in your research.

Effective Property Tax Rates by State

The Tax Foundation has provided some data on property taxes in each state to help answer these questions.

Last year, the Tax Foundation released an analysis of the property tax rates in each state. The map below shows the results.

Map of the United States showing the effective property tax rates for each state

The rates listed are effective tax rates on owner-occupied housing. According to the Tax Foundation, “This is the average amount of residential property tax actually paid, expressed as a percentage of home value.”

State Reliance on Property Tax Revenue

More recently, the Tax Foundation has also provided data showing the extent to which each state relies on property tax revenues. This can vary quite dramatically depending on the extent to which a state derives its revenue from property taxes. The Tax Foundation also notes that a heavy reliance on property tax revenue does not automatically equate to a higher overall tax burden.

Map of the United States showing each state's level of reliance on property taxes

Best States for Retirees

Other organizations provide research on which states are the most and least friendly to retirees from a tax standpoint. Kiplinger for instance recently provided its latest listing of the ten most tax-friendly states for retirees.

Kiplinger notes in its listing that these states exempt Social Security income and at least a portion of other common income sources for retirees such as pensions and withdrawals from tax-deferred accounts.

Always be sure to consult a tax advisor for any tax specific questions or planning that is unique to your personal financial situation.

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About the Author

Ian Smith is one of the co-founders of He enjoys writing about current topics that affect the federal workforce.