Landlord Friendly States vs Property Taxes

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Landlord Friendly States vs Property Taxes

Jewel B.Pro Member
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes

Here is cross reference between landlord friendly states and their associated property taxes :)

LANDLORD FRIENDLY X LOW TAXES

WEST

Idaho

Wyoming

Colorado

Arizona

Utah (moderately friendly)

New Mexico (moderately friendly)

MIDWEST

SOUTH

West Virginia

Alabama

Louisiana

South Carolina

Arkansas

Mississippi

Tennessee (moderately friendly)

NORTHEAST

LANDLORD FRIENDLY X MODERATE TAXES

WEST

Montana

Alaska

MIDWEST

Indiana

Oklahoma

Missouri

North Dakota

South Dakota

SOUTH

Kentucky

North Carolina

Florida

Georgia

Virginia (moderately friendly)

NORTHEAST

LANDLORD FRIENDLY X HIGH TAXES

WEST

MIDWEST

Ohio

Michigan

Iowa (moderately friendly)

Wisconsin (moderately friendly)

Illinois (Chicago is tenant friendly)

SOUTH

Texas

NORTHEAST

Pennsylvania

New Hampshire (moderately friendly)

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Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
3y

Nonowner-occupied property taxes are in SC are high.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y

    Thanks for sharing. Do you care to share your methods for defining "Landlord friendly"?

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    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y

    Wow, if Wisconsin is moderately friendly, I would not want to be a tenant anywhere else!!

    1Reply
  • Susan Maneck
    Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    3y

    I would not list Mississippi as a low property tax state. Relative to property values it is anything but. I typically pay $1000-$1500  a year on a house I paid 30K for. That's about the same as my condo in California. Relative to property values, California is much, much less. 

    1Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Nathan Gesner:

    Thanks for sharing. Do you care to share your methods for defining "Landlord friendly"?


     Hi Nathan. This is the resource I used, along with various other websites/articles. It seems they use several criteria, some of which are fairly minor considerations really. These include rent control, security deposit regulations, lease violations, late fees, eviction processes, barriers to entry (permits, licensing, etc.), and so on.

    What are your thoughts?

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Marcus Auerbach:

    Wow, if Wisconsin is moderately friendly, I would not want to be a tenant anywhere else!!


     Thank you for feedback. There are a number of factors my sources took into consideration, some of which are fairly minor. I feel the two biggest factors would probably be rent control and eviction process. Does rent control still apply though when placing a new tenant?

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Susan Maneck:

    I would not list Mississippi as a low property tax state. Relative to property values it is anything but. I typically pay $1000-$1500  a year on a house I paid 30K for. That's about the same as my condo in California. Relative to property values, California is much, much less. 


     That's interesting! What is your home's value currently assessed at? What city?

    0Reply
  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    3y

    You might also want to think about the type of taxes. South Dakota, for instance, has comparatively high property tax but no state income tax.

    1Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Benjamin Aaker:

    You might also want to think about the type of taxes. South Dakota, for instance, has comparatively high property tax but no state income tax.


     Someone else just mentioned income taxes and insurance rates - thanks!

    0Reply
  • Susan Maneck
    Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    3y
    Quote from @Jewel B.:
    Quote from @Susan Maneck:

    I would not list Mississippi as a low property tax state. Relative to property values it is anything but. I typically pay $1000-$1500  a year on a house I paid 30K for. That's about the same as my condo in California. Relative to property values, California is much, much less. 


     That's interesting! What is your home's value currently assessed at? What city?

    I'm in Jackson, MS. The county appraisal of a house is 43.5K. The taxes on it are $1221.00 
    0Reply
  • Nate Sanow
    I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    Interesting study. You’re not wrong about my market (Oklahoma) we are about as landlord friendly as they come, and our taxes are reasonable. But I second @Nathan Gesner’s question… any references available for this study? 

    1Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Nate Sanow:

    Interesting study. You’re not wrong about my market (Oklahoma) we are about as landlord friendly as they come, and our taxes are reasonable. But I second @Nathan Gesner’s question… any references available for this study? 

    I used Turbo Tenant's landlord-tenant laws map and information for the landlord friendly vs tenant friendly designations. I used Rocket Mortgage's website for the property tax information. 

    Upon the recommendation of others, I am also finishing up a personal reference that considers landlord friendly vs tenant friendly, property taxes, income taxes, and homeowner's insurance costs. Of course, this information can vary by the exact city or area, considers different factors which may be minor, statistics can be interpreted differently, etc. 

    However, the fact of the matter is that 50 states plus D.C. or around 19K cities is a lot to choose from, so I'm just trying to have some general criteria to narrow things down by 😅 There are pros and cons to every area and for every person and strategy. 

    I also have to factor in cash flow vs appreciation, market keys (population growth, job growth, etc), and the strategy (STR vs MTR vs LTR will look for different things). Just desperately trying to narrow things down 😅 
    1Reply
  • Nate Sanow
    I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    3y
    Quote from @Jewel B.:
    Quote from @Nate Sanow:

    Interesting study. You’re not wrong about my market (Oklahoma) we are about as landlord friendly as they come, and our taxes are reasonable. But I second @Nathan Gesner’s question… any references available for this study? 

    I used Turbo Tenant's landlord-tenant laws map and information for the landlord friendly vs tenant friendly designations. I used Rocket Mortgage's website for the property tax information. 

    Upon the recommendation of others, I am also finishing up a personal reference that considers landlord friendly vs tenant friendly, property taxes, income taxes, and homeowner's insurance costs. Of course, this information can vary by the exact city or area, considers different factors which may be minor, statistics can be interpreted differently, etc. 

    However, the fact of the matter is that 50 states plus D.C. or around 19K cities is a lot to choose from, so I'm just trying to have some general criteria to narrow things down by 😅 There are pros and cons to every area and for every person and strategy. 

    I also have to factor in cash flow vs appreciation, market keys (population growth, job growth, etc), and the strategy (STR vs MTR vs LTR will look for different things). Just desperately trying to narrow things down 😅 

     Cool.  Sounds like you really researched. 

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Nate Sanow:
    Quote from @Jewel B.:
    Quote from @Nate Sanow:

    Interesting study. You’re not wrong about my market (Oklahoma) we are about as landlord friendly as they come, and our taxes are reasonable. But I second @Nathan Gesner’s question… any references available for this study? 

    I used Turbo Tenant's landlord-tenant laws map and information for the landlord friendly vs tenant friendly designations. I used Rocket Mortgage's website for the property tax information. 

    Upon the recommendation of others, I am also finishing up a personal reference that considers landlord friendly vs tenant friendly, property taxes, income taxes, and homeowner's insurance costs. Of course, this information can vary by the exact city or area, considers different factors which may be minor, statistics can be interpreted differently, etc. 

    However, the fact of the matter is that 50 states plus D.C. or around 19K cities is a lot to choose from, so I'm just trying to have some general criteria to narrow things down by 😅 There are pros and cons to every area and for every person and strategy. 

    I also have to factor in cash flow vs appreciation, market keys (population growth, job growth, etc), and the strategy (STR vs MTR vs LTR will look for different things). Just desperately trying to narrow things down 😅 

     Cool.  Sounds like you really researched. 


    It's a work in progress but I appreciate it 🙏  
    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y
    Quote from @Jewel B.:
    Quote from @Marcus Auerbach:

    Wow, if Wisconsin is moderately friendly, I would not want to be a tenant anywhere else!!


     Thank you for feedback. There are a number of factors my sources took into consideration, some of which are fairly minor. I feel the two biggest factors would probably be rent control and eviction process. Does rent control still apply though when placing a new tenant?


     Not too familiar with rent control, we don't have to deal with it in Wisconsin. In all fairness, it's not so easy to compare metro areas on paper - my market Milwaukee is a great example. At least half of the information you find online is about Milwaukee proper (City of Milwaukee) which is about 600k people and includes the areas that have issues with poverty and crime. 

    However, the county of Milwaukee has 19 municipalities that looked at from the outside are all part of what you might consider "Milwaukee" in a more general term. The total population is 1.6 million, and about 2.6x larger than MKE proper. Many of these communities are considered affluent, this is where growth and new construction is happening.

    For a lack of a better comparison: NY is bigger than just Manhattan and if you look at economic and real estate metrics you get a totally different picture if you include all 5 burrows. Hope this makes sense..

    1Reply
  • Abdul Jabar
    Member since 2021 · 20 posts · 2 votes
    3y

    @Susan Maneck . True about CA as most counties prop Tax is around 1% of value- however most desirable cities introduced Mello Roos or Community Development Fund tax which makes CA prop Tax around 1.9% to 2% in most desireable cities.

    0Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    3y

    Nonowner-occupied property taxes are in SC are high.

    2Reply
  • Susan Maneck
    Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    3y
    Quote from @Abdul Jabar:

    @Susan Maneck . True about CA as most counties prop Tax is around 1% of value- however most desirable cities introduced Mello Roos or Community Development Fund tax which makes CA prop Tax around 1.9% to 2% in most desireable cities.


     Yes, but property values can only rise so fast because of Prop 13 until a property changes hands. In any case property taxes in Mississippi are more like 3-4% if not owner-occupied, and that's based on what they think the property is worth. During the Recession their appraisals were higher about 25% higher than I was paying for the properties! 

    0Reply
  • Bryant Dawson
    Real Estate Consultant · MO · Member since 2015 · 26 posts · 9 votes
    3y

    Missouri tax are low in about 95% of the state due to most being outside major city's I own close to 100 doors and manage several hundred with the average market values being 120k(not county appraised value) and average tax just over $500 per year. These are all over the state but non in KC or STL.

    1Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Mike Dymski:

    Nonowner-occupied property taxes are in SC are high.


     great to know!

    1Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Bryant Dawson:

    Missouri tax are low in about 95% of the state due to most being outside major city's I own close to 100 doors and manage several hundred with the average market values being 120k(not county appraised value) and average tax just over $500 per year. These are all over the state but non in KC or STL.


     great to know!

    0Reply
  • Brad S.
    Investor · Pasadena, CA · Member since 2017 · 612 posts · 523 votes
    3y
    Quote from @Susan Maneck:
    Quote from @Abdul Jabar:

    @Susan Maneck . True about CA as most counties prop Tax is around 1% of value- however most desirable cities introduced Mello Roos or Community Development Fund tax which makes CA prop Tax around 1.9% to 2% in most desireable cities.


     Yes, but property values can only rise so fast because of Prop 13 until a property changes hands. In any case property taxes in Mississippi are more like 3-4% if not owner-occupied, and that's based on what they think the property is worth. During the Recession their appraisals were higher about 25% higher than I was paying for the properties! 

    **************************************************************
    Due to Prop 13, CA is by far the best when it comes to property taxes compared to longtime hold property values (appreciation). Property taxes are a flat 1% of assessed value, then there are local voter indebtedness and other local fees, they add to the tax bill, but the actual taxes are only 1%. Typically, the total works out to be around 1.10-1.20%, I have never seen anything close to 2% in CA. And the assessed value can only increase up to 2% per year (per prop 13). So, I know people that have a 3 million dollar house that is assessed at $230k, with a tax bill around $3,200/yr, which equals around 0.11%

    But, of course, CA doesn't typically cashflow well for new purchases, and is very tenant friendly.
    0Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    3y

    You might want to throw in insurance for the calculation as well.  While we are good on your two stats in Oklahoma historically our property insurance is a bit on the high side due to Tornado Alley.  It does seem to be shifting to the east a bit which is good for us but not so much for some of our neighbors. 

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    Integrity Oklahoma
    WebsiteView Page
    1Reply
  • Adam Bartling
    Lender · Rosenberg, TX · Member since 2022 · 286 posts · 130 votes
    3y

    Just as the Government raises taxes and fees on businesses, guess what, we all pass it to the consumer.  Thanks government for being the driving force behind inflation!

    0Reply
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