Oklahoma is a Midwestern state known for its mountain ranges, great plains, forests and lakes. Although Oklahoma's property taxes are often small 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 can be compared to other counties in Oklahoma, as a percentage of your income and to surrounding states, can give you the right information to make decisions on where to live.

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 home owners. 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 2015, the Oklahoma effective tax rate was 0.87%. The median annual property tax paid in Oklahoma is $958. Oklahoma has one of the lowest property tax rates in the nation and legislation that caps the amount of raises in tax each year. Yet since 1998, property tax revenue has grown by 8% annually due to building and tax rate increases.

There are three counties that have effective property tax rates of over 1%: Cleveland, Oklahoma and Tulsa. Tulsa County holds the distinction of having the highest property taxes at 1.09%. Yet all three of the most expensive counties in Oklahoma are still cheaper than the national average of 1.211%. Pushmataha at 0.41%, Choctaw at 0.43% and Cimarron at 0.44% have the three lowest county tax rates, yet Harmon County has lower median home values and pays the fewest property taxes, on average, in the state at just $288 annually.

How Oklahoma Compares to the National Average

Oklahoma is listed as having the 21st least-expensive property taxes. Its median home value is $115,000, which is well below the national median home value of $175,000, 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 33rd 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 1.9%, 1.39% and 1.02%, 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 at 0.61%, followed by Arkansas at 0.62%; New Mexico is slightly lower than Oklahoma at 0.73%.

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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