Oklahoma is a Midwestern state known for its mountain ranges, great plains, forests and lakes. Although Oklahoma's property taxes are often low in comparison to state and federal taxes, they can be substantial enough to have an effect on your finances. Understanding how property taxes are calculated and how they compare to those of surrounding states can give you the right information to make a smart choice about where to live. Here are some key figures you'll need before moving ahead. 

Average Oklahoma Property Taxes

Property taxes in Oklahoma are set by counties, and properties are valued by county assessors. The property tax system is based on mills, which assesses $1 per mill for every $1,000 in taxable value. Properties are assessed based on recent market valuations, and the mill rate is set by the county to a range of 10 to 15% of the assessed value. Oklahoma sets the maximum assessment ratio at 15%, and assessed values cannot increase more than 5% per year except when a home is sold. Oklahoma mill rates are commonly in the range of 90 to 110, which equates to $900 to $1,100 on a $100,000 home.

The Tax Foundation is an organization dedicated to providing tax information to homeowners. It calculates the effective tax rate as a percentage of median home valuation for owner-occupied homes.

Oklahoma is one of the 10 states with the lowest taxes. As of 2018, the Oklahoma effective tax rate was 0.86%. The median annual property tax paid in Oklahoma is $1,076. Oklahoma has one of the lowest property tax rates in the nation. The legislation caps the amount of raises in tax at 3% each year. 

There are four counties that have effective property tax rates of over 1%: Canadian, Cleveland, Oklahoma and Tulsa. Tulsa County holds the distinction of having the highest property taxes at 1.10%. Yet all four of the most expensive counties in Oklahoma are still cheaper than the national average of 1.211 — Choctaw at 0.42%, Murray at 0.43%, while McCurtain and Pushmataha both tie at 0.44% with the three lowest county tax rates, yet Cimarron County has lower median home values ($57,100) and pays the fewest property taxes, on average, in the state at just $269 annually.

How Oklahoma Compares to the National Average

Oklahoma is listed as having the 24th least-expensive property taxes. Its median home value is $121,300, which is well below the national median home value of $184,700, with an effective tax rate of 0.87%. For owner-occupied homes based on median home values at a 0.87% effective tax rate, the Tax Foundation ranks Oklahoma as the 29th least-expensive state.

How Oklahoma's Tax Compares to Its Neighboring States

Oklahoma has six neighbors: Texas, New Mexico, Colorado, Kansas, Montana and Arkansas. For effective property tax rates on the owner-occupied housing map, Texas, Kansas and Montana all have higher rates at 1.67%, 1.30%, and 1.00%, respectively. Texas is one of the most expensive property tax states in the country, and Kansas is still above the national average tax rate, while all remaining states are under the national average. Colorado has the lowest property tax rate of these seven states at 0.59%, followed by Arkansas at 0.64%; New Mexico is slightly lower than Oklahoma at 0.66%.

Property taxes should be taken into consideration, yet the value of your home has a large effect on how much actual tax you pay. You could have a higher property tax rate but a lower home value and pay the same as someone with a low property tax value and a higher home value.

South Carolina Property Tax Guide

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