10. Arkansas
- Average House Value in 2022: $166,566
- Effective Property Tax Rate in 2019: 0.61%
- Median Household Income in 2019: $48,952
- Annual Taxes on a Median-Priced Property: $1,016.05
Low housing costs coupled with low effective property taxes contribute to Arkansas’ attractive cost of living. The state’s gas tax was 25 cents per gallon in 2021, significantly lower than the national average.
However, sales taxes in Arkansas were on the upper limit, with a combined state and local sales tax rate of 9.51% (ranking fourth highest in the US).
To conclude, while all 51 states (Washington included) have property taxes, there are some states that levy favorable ones. Some people, however, may be exempted from paying property tax.
There are also some states that offer homestead exemptions; other kinds of exemptions may be available for military veterans, people with disabilities, older homeowners, and homeowners who install renewable energy systems (such as solar panels) or make certain renovations.
Want to read more tax-related articles? Here is another one you may also like: These 9 States Have No Income Tax!
