In What States Do You Not Pay Personal Property Tax?

A Texas tax professional is looking for states with no personal property tax.

Instead of Texas—where businesses should file annually for assets like inventory and equipment—specific states skip personal property tax altogether. In other words, fewer forms, no appraisal from the Texas CAD, and no worries over business vehicles or equipment being taxed.

We present below the states where personal property tax is either eliminated or extremely limited:

  • Delaware: No tax on personal property for individuals or businesses. A clear distinction from Texas personal property tax requirements.

  • Hawaii: Only real estate is taxed. Business inventory or equipment? Not included.

  • Illinois: Phased out personal property tax in 1979 for businesses. This simplifies the process compared to business personal property tax in Texas.

  • Iowa: Personal property taxes were eliminated decades ago. It is considered as friendlier for businesses.

  • New York: The state doesn’t tax business personal property, though property taxes on real estate can be high.

  • Ohio: Ended most personal property taxes for businesses in the late 2000s.

  • Pennsylvania: Personal property tax is not assessed at the state level, though some local jurisdictions might impose specific levies.

  • South Dakota: Business personal property is not taxed, and household goods are excluded.

  • New Jersey: No statewide personal property tax, with limited exceptions for utilities.

In the case of moving your business or comparing filing obligations between states, this list provides some context. In contrast, Texas CAD offices necessitate annual renditions that include assets leveraged for business purposes. If you are operating vehicles for business use, they may fall under the scope of vehicle property tax in Texas—even if they are not subject to standard DMV taxes.

Final Word

Can you avoid property tax in Texas entirely? Not likely—unless the assets satisfy strict exemption rules. But recognizing where other states stand can present aid in weighing your options if relocation or expansion is on your mind. If you consider professional assistance, contact Dimov Partners today. 


George Dimov