How does your state compare to everyone else when it come to taxes? Taxes, especially property taxes, are a major expense to us landlords. Property taxes are also very localized and can differ significantly from jurisdiction to jurisdiction. What is often the custom in one locale, may be completely different in another. It is therefore interesting to see how taxes can compare. And not just property taxes, all types of taxes. For while property taxes may be low in one area, they might be off set by higher sales or income taxes. Or perhaps you are paying through the nose on all levels.
The Lincoln Institute of Land Policy has created an interesting interactive map of state by state taxes.
With it, you can compare your state’s property tax levels with those of other states. You can also examine income, sales and other state taxes. Use this tool to see if your taxes really are that high. If you think your real estate taxes are low, take a look and see how your income and sales taxes compare to other states. You maybe surprised and/or infuriated.
Here in Tennessee for example, we have lower real estate taxes and no income tax (except on some investment income). Sales taxes though are some of the highest in the country, with almost everything, including food and medicine being taxed at the point of sale. Maryland is high in all tax categories while Wyoming and Nevada are much lower. Take a look around and see how your state compares.
Another neat tool for real estate investors and smarter landlords.
