Year

Rank

Trending

Effective Property Tax Rate (Commercial)

U.S. Average

North Carolina

Effective Commercial Property Tax Rate

Effective Property Tax Rate on a Commercial Property

What does this mean?

This rate is the tax bill on official buildings and similar properties as a percent of a property’s market value.

Why does this matter?

Property taxes are one part of the package of taxes and public services that affects competitiveness and quality of life. High commercial property taxes can be a disincentive for business location in a given area. However, a comparatively lower tax rate, coupled with a state that is attracting residents, may be an attractive option for relocation of entrepreneurial/start-up activity and commercial businesses.

Business Headache Index

North Carolina Ranking

23 / 51

Source: Lincoln Institute of Land Policy

Effective Commercial Property Tax Rate

State	2014-01	2015-01	2016-01	2017-01	2018-01	2019-01	2020-01
Alabama	1.39	1.45	1.45	1.45	1.15	0.67	1.45
Alaska	1.40	1.38	1.41	1.46	1.58	1.20	1.55
Arizona	2.64	2.64	2.65	2.60	2.26	1.25	2.71
Arkansas	1.44	1.44	1.44	1.40	1.40	1.12	1.40
California	1.22	1.19	1.19	1.19	0.96	1.16	1.20
Colorado	2.40	2.40	2.25	2.31	1.77	0.56	2.07
Connecticut	3.42	3.59	3.81	3.81	1.88	3.22	3.67
Delaware	1.10	1.04	1.11	1.07	0.86	1.39	1.50
District of Columbia	2.00	1.94	1.95	1.98	1.86	0.73	1.93
Florida	1.83	1.77	1.75	1.72	1.35	1.25	1.65
Georgia	1.74	1.67	1.66	1.59	1.41	0.88	1.58
Hawaii	0.91	0.91	0.91	0.91	0.60	0.31	1.06
Idaho	1.68	1.68	1.55	1.55	1.17	0.80	1.13
Illinois	3.86	3.60	3.86	3.78	2.06	1.52	4.03
Indiana	3.11	2.84	2.85	2.46	2.10	1.16	2.86
Iowa	3.69	3.29	3.27	3.25	2.11	2.25	3.64
Kansas	2.74	2.83	2.72	2.68	1.48	1.18	2.57
Kentucky	1.39	1.40	1.33	1.26	0.72	1.21	1.36
Louisiana	2.20	2.11	2.15	2.05	2.11	1.04	2.06
Maine	2.00	2.06	2.11	2.06	1.11	1.83	1.88
Maryland	2.46	2.66	2.68	2.78	1.35	2.22	2.84
Massachusetts	2.88	2.24	1.92	1.82	1.07	0.49	1.89
Michigan	4.22	4.13	4.09	4.24	2.72	2.93	4.16
Minnesota	3.57	3.37	3.11	2.95	1.63	1.37	2.88
Mississippi	2.68	2.69	2.77	2.84	2.08	1.37	2.72
Missouri	2.76	2.75	2.76	2.77	2.28	1.38	2.87
Montana	1.32	1.17	1.11	1.22	1.25	0.90	1.18
Nebraska	2.06	2.10	2.11	2.09	1.67	2.02	2.05
Nevada	1.12	1.12	1.14	1.14	0.91	1.11	1.12
New Hampshire	2.03	1.97	1.87	1.88	1.06	2.03	1.63
New Jersey	2.41	2.54	2.67	1.49	1.48	3.03	2.67
New Mexico	1.51	1.49	1.49	3.90	1.20	1.23	1.43
New York	3.97	3.96	3.93	2.64	0.58	1.18	1.43
North Carolina	1.22	1.18	1.15	1.08	0.88	0.95	0.91
North Dakota	1.16	1.14	1.00	0.96	0.58	1.19	1.08
Ohio	2.16	1.62	1.75	2.15	1.28	1.94	1.89
Oklahoma	1.31	1.32	1.30	1.30	1.40	1.24	1.36
Oregon	2.32	2.29	2.29	2.42	1.96	2.46	2.48
Pennsylvania	2.03	2.03	2.11	2.13	1.27	1.00	2.02
Rhode Island	3.65	3.71	3.71	3.68	2.03	1.29	3.62
South Carolina	3.06	3.22	3.24	1.77	2.34	0.52	1.77
South Dakota	1.52	1.60	1.41	1.45	0.81	1.54	1.41
Tennessee	2.98	2.84	2.84	2.83	1.10	0.67	1.40
Texas	2.47	2.44	2.36	2.36	2.39	1.71	2.24
Utah	1.54	1.54	1.46	1.39	1.45	0.71	1.18
Vermont	2.31	2.38	2.33	2.35	1.04	2.31	2.65
Virginia	0.98	1.03	1.05	0.96	1.66	0.91	1.04
Washington	0.95	0.88	0.89	0.85	0.49	0.76	0.83
West Virginia	1.56	1.61	1.65	1.61	0.73	0.83	1.86
Wisconsin	2.94	2.87	2.86	2.76	1.67	2.41	2.58
Wyoming	0.69	0.64	0.66	0.61	1.50	0.65	0.67
U.S. Average	2.16	2.11	2.10	2.06	1.45	1.35	1.98