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Writer's pictureRowena Patton

#3: Politics in Real Estate: 50 U.S. states, ranked by affordability, property and state income tax, and population changes from 2016 - 2024

Updated: Sep 25


50 U.S. states, ranked by affordability, property tax rates, state income tax rates, and population changes from 2016 to 2024

Rank

State

Party in Power

Average Prop Tax Rate

Annual Taxes on $400k Home

State Income Tax Rate

Pop Change (2016-2024)

Notes

1

Texas

Republican

1.81%

$7,240

No state income tax

+5.1%

Higher property taxes, no income tax, moderate sales tax

2

Florida

Republican

0.83%

$3,320

No state income tax

+4.9%

No state income tax, high insurance costs

3

Arizona

Republican

0.66%

$2,640

2.59% – 4.50%

+3.8%

Low property taxes, moderate income and sales taxes

4

South Carolina

Republican

0.57%

$2,280

0% – 7%

+3.4%

Attracting retirees due to low taxes

5

North Carolina

Republican

0.77%

$3,080

4.75%

+3.7%

Moderate property and income taxes

6

Idaho

Republican

1.31%

$5,240

1.12% – 6.93%

+7.63%

Fast population growth, low income tax

7

Georgia

Republican

0.92%

$3,680

1% – 5.75%

+1.9%

Moderate taxes, strong job growth

8

Nevada

Democratic

0.53%

$2,120

No state income tax

+1.8%

Low property taxes, no income tax, high housing costs

9

Utah

Republican

0.61%

$2,440

4.85%

+6.0%

High birth rate, low property tax, moderate income tax

10

Tennessee

Republican

0.64%

$2,560

No state income tax

+2.8%

Low property and no income tax

11

Colorado

Democratic

0.49%

$1,960

4.4% – 5%

+4.1%

Low property taxes, moderate income taxes

12

Montana

Republican

0.88%

$3,520

1% – 6.75%

+5.1%

Low population density, low overall taxes

13

New Hampshire

Republican

2.05%

$8,200

No state income tax

+1.92%

High property taxes, no income tax

14

Alabama

Republican

0.39%

$1,560

2% – 5%

+1.1%

Low property taxes, moderate state income taxes

15

Indiana

Republican

0.85%

$3,400

3.23%

+1.3%

Low property and moderate state income taxes

16

Virginia

Republican

0.80%

$3,200

2% – 5.75%

+1.0%

Moderate taxes overall

17

Washington

Democratic

0.92%

$3,680

No state income tax

+1.6%

High housing costs, no state income tax

18

Maine

Democratic

1.30%

$5,200

5.8% – 7.15%

+0.76%

High property and income taxes

19

Oregon

Democratic

0.90%

$3,600

4.75% – 9.9%

+0.33%

High state income tax, moderate property taxes

20

California

Democratic

0.76%

$3,040

1% – 13.3%

-0.19%

High cost of living, high state income taxes

21

New York

Democratic

2.5% – 3.5%

$10,000 – $14,000

4% – 10.9%

-0.52%

High property taxes and cost of living

22

Illinois

Democratic

2.27%

$9,080

4.95%

-0.26%

High property and income taxes, outmigration

23

Connecticut

Democratic

2.14%

$8,560

3% – 6.99%

-0.08%

High cost of living and taxes

24

New Jersey

Democratic

2.49%

$9,960

1.4% – 10.75%

-0.19%

High taxes across the board

25

Massachusetts

Democratic

1.17%

$4,680

5%

+0.56%

High property taxes, higher incomes offset taxes

26

Mississippi

Republican

0.81%

$3,240

3% – 5%

+0.3%

Low cost of living but slow population growth

27

North Dakota

Republican

1.02%

$4,080

1.1% – 2.9%

+0.24%

Low population density, moderate property taxes

28

Missouri

Republican

0.93%

$3,720

0.5% – 5.4%

+0.1%

Moderate property taxes and cost of living

29

Minnesota

Democratic

1.05%

$4,200

5.35% – 9.85%

+0.3%

Higher income and property taxes, but strong public services

30

Kentucky

Republican

0.83%

$3,320

2% – 6%

+0.85%

Moderate taxes, lower cost of living

31

Louisiana

Republican

0.55%

$2,200

2% – 6%

-0.31%

Low taxes but population decline

32

Arkansas

Republican

0.62%

$2,480

2% – 5.9%

+0.8%

Low cost of living, moderate taxes

33

West Virginia

Republican

0.58%

$2,320

3% – 6.5%

-0.22%

Low cost of living, declining population

34

Hawaii

Democratic

0.28%

$1,120

1.4% – 11%

-0.3%

High income taxes, very high cost of living

35

Alaska

Republican

1.19%

$4,760

No state income tax

+0.02%

High cost of living due to remoteness

36

Oklahoma

Republican

0.90%

$3,600

0.5% – 5%

+0.9%

Low cost of living, moderate taxes

37

Hawaii

Democratic

0.28%

$1,120

1.4% – 11%

-0.3%

High income taxes, very high cost of living

38

South Dakota

Republican

1.31%

$5,240

No state income tax

+1.31%

Low cost of living, no income tax

39

New Mexico

Democratic

0.74%

$2,960

1.7% – 5.9%

+0.04%

High poverty rate, moderate taxes

40

North Dakota

Republican

1.02%

$4,080

1.1% – 2.9%

+0.24%

Low population density, moderate property taxes

41

Kentucky

Republican

0.83%

$3,320

2% – 6%

+0.85%

Moderate taxes, lower cost of living

42

Mississippi

Republican

0.81%

$3,240

3% – 5%

+0.3%

Low cost of living but slow population growth

43

West Virginia

Republican

0.58%

$2,320

3% – 6.5%

-0.22%

Low cost of living, declining population

44

Louisiana

Republican

0.55%

$2,200

2% – 6%

-0.31%

Low taxes but population decline

45

Arkansas

Republican

0.62%

$2,480

2% – 5.9%

+0.8%

Low cost of living, moderate taxes

46

Vermont

Democratic

1.90%

$7,600

3.35% – 8.75%

+0.05%

High property and income taxes

47

Rhode Island

Democratic

1.39%

$5,560

3.75% – 5.99%

+0.2%

High cost of living and taxes

48

Delaware

Democratic

0.56%

$2,240

2.2% – 6.6%

+1.22%

Moderate taxes, low population density

49

Pennsylvania

Democratic

1.58%

$6,320

3.07%

-0.08%

High property taxes, moderate income taxes

50

Illinois

Democratic

2.27%

$9,080

4.95%

-0.26%

High property and income taxes, outmigration


Takeaways:

  • Lower population growth: States like West Virginia, Louisiana, and Mississippi are experiencing population declines, with affordable property taxes but fewer job opportunities.

  • Higher tax burdens: Illinois and Pennsylvania have high property taxes and stagnant or declining populations, making them less attractive to new residents.


Sources

  1. Tax Foundation – "State and Local Property Tax Rates, 2024," provides detailed information on property tax rates across all U.S. states, including their historical changes. Available at: Tax Foundation.

  2. U.S. Census Bureau – "State Population Totals and Components of Change: 2016-2024," offers detailed population data and trends for all 50 U.S. states. Available at: U.S. Census Bureau.

  3. The Pew Charitable Trusts – "Population Growth in Most States Lags Long-Term Trends," covers population changes across U.S. states from 2008 to 2024, with detailed statistics on migration patterns and growth rates. Available at: Pew Charitable Trusts.

  4. Norada Real Estate Investments – "2024 U.S. Real Estate Market Trends," provides insights into real estate market trends, housing affordability, and property tax impacts by state. Available at: Norada Real Estate.

  5. GOBankingRates – "States with the Highest and Lowest Property Taxes in 2024," provides a breakdown of property tax rates and comparisons across the country. Available at: GOBankingRates.



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Disclaimer:
The information provided in this blog post is for general informational purposes only. All data regarding tax rates, population changes, and housing affordability is based on publicly available sources and is subject to change. This post does not constitute financial or legal advice. It is recommended to consult with a tax professional or real estate advisor to better understand how these factors apply to your individual situation.

This is from our series ‘Politics in Real Estate






















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1 Comment


Rowena Patton
Rowena Patton
Sep 23

Where does your state rank for affordability? North Carolina, where I am now based comes in at #5. Florida, where I used to live comes in at #2, and California, where I have also lived comes in at #20. Of course, all these rankings depend on your personal situation.

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