Top 10 Cities With The Lowest Real Estate Taxes

A recent survey by the District of Columbia government identified top 10 cities in the U.S. that have the lowest overall tax burden. The survey was conducted on the state and local tax burden of families in the largest city in each of America's 50 states and Washington, D.C. The survey provided the stat on the state/local income, sales tax, real estate tax and auto/personal property tax incurred by couples at various income levels.

Kiplinger's Personal Finance Magazine provided the rankings of the lowest-tax cities for dual-income couples with one school-age child earning a combined gross income of $75,000. The property tax shown for each city is the estimate of a hypothetical home that a couple earning $75,000 would own. Similarly, the auto tax of the top 10 cities is based on the assumption that the couple owns two cars. The auto tax is an estimate of the registration fees, state and local gasoline taxes and personal property taxes all put together.

While the national median tax burden for such families is 9.1 %, all the top ten cities had an overall state and local tax burden that ranged from 4.1 % to 6.7 %. Not surprisingly, seven of the top ten tax friendliest cities are in states that do not have income tax.

The following are top 10 tax friendliest cities in the U.S.

1. Anchorage, Alaska: Anchorage has the lowest tax burden at 4.1 %. The estimated property tax is $2,872 and the auto tax is $176 in this city that is home to 42 % of Alaskan residents.

2. Cheyenne, Wyoming: This second most low-tax city enjoys a tax bite of 4.3 %. The property tax and auto tax estimates are $1,047 and $564 respectively.

3. Jacksonville, Florida: The city has a low tax burden of 4.6 % while the property tax and auto tax estimates are $1,869 and $333 respectively.

4. Las Vegas, Nevada: The fourth tax friendliest city in the list, Las Vegas has a tax bite of 5.4 %. The property tax and auto tax estimates are $2,416 and $610 respectively.

5. Honolulu, Hawaii: Honolulu has a total tax burden of 5.6 %. The city's property tax and auto tax estimates are $1,279 and $425 respectively.

6. Memphis, Tennessee: At sixth position is Memphis with an overall tax bite of 6.1 %. Its property tax estimate is $2,084 while the auto tax estimate is $355.

7. Sioux Falls, South Dakota: With a tax bite of 6.3 %, and respective property tax and auto tax estimates at $2,701 and $325, Sioux Falls occupies the seventh position among the top 10.

8. Fargo, North Dakota: At number eight is Fargo with a tax burden of 6.3 %. Its property tax estimate is at $2,188 and auto tax estimate at $317.

9. Houston, Texas: Houston has a tax bite of 6.3 %. The city's property tax and auto tax estimates are at $2,778 and $310 respectively.

10. Billings, Montana: Rounding out the top 10 tax friendliest cites is Billings with a tax bite of 6.7 %. The property tax and auto tax estimates are at $1,983 and $682 respectively.

Source: Kiplinger Personal Finance (05/07)
 

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