By state

Investor lending by state

Property tax and income tax by state, the way they actually feed a DSCR calculation, plus this site's own read of how DSCR-friendly, LLC-friendly, prepayment-penalty and short-term-rental rules run in each one.

Property tax alone runs from 0.3% in Hawaii to 2.5% in New Jersey. On a hypothetical $300,000 property, that gap alone is the difference between roughly $75 and $625 a month in property tax escrow — before a single dollar of principal or interest. 9 states (AK, FL, NV, NH, SD, TN, TX, WA, WY) charge no state income tax at all; California sits at the other end, with a top rate of 13.3%.

The four classification columns in the table — DSCR, LLC, prepay and STR — are this site's own directional read, not a lender's underwriting policy, a law firm's opinion, or a licensing determination. DSCR-friendly weighs each state's property tax burden (a direct input to DSCR's PITIA denominator) against whatever rent-to-price or cash-flow detail our state notes carry. LLC-friendly reads each state's entity-formation and landlord-tenant posture where our notes describe one. Prepay is a directional read of how restrictively a state treats prepayment penalties on business-purpose investor loans — no note here cites a specific statute, so treat every value in that column as directional, not legal guidance. STR reads short-term-rental restrictiveness where our notes describe state or local rules; where they don't, the label is directional only. Each state's own page states which of its labels the note actually supports and which are directional.

This table does not say which lenders lend in which state, on purpose. Only 13 of the 37 lenders in the directory publish a statesCovered figure at all, and that figure is a count of how many states a lender covers — not a list of which ones. Nothing in this project maps a specific lender to a specific state. State licensing for private and hard money lenders is not uniform, so confirm coverage directly with each lender in the lender directory rather than assuming it from anything on this page.

By region

Regional averages, computed from the states in each group below — useful for reading any one state's numbers against its actual neighbors instead of the national spread.

Northeast 11 states

Avg. property tax 1.55% · avg. income tax 6.81%

CT DE ME MD MA NH NJ NY PA RI VT

Midwest 12 states

Avg. property tax 1.44% · avg. income tax 4.84%

IL IN IA KS MI MN MO NE ND OH SD WI

South 14 states

Avg. property tax 0.83% · avg. income tax 3.92%

AL AR FL GA KY LA MS NC OK SC TN TX VA WV

West 13 states

Avg. property tax 0.72% · avg. income tax 4.95%

AK AZ CA CO HI ID MT NV NM OR UT WA WY

All 50 states

Sorted alphabetically by default. Click a column header to sort by that column instead.

State	Region	Property tax	Income tax	DSCR	LLC	Prepay	STR
Alabama AL	South	0.4%	5%	high	high	standard	lenient
Alaska AK	West	1.2%	None	medium	high	standard	lenient
Arizona AZ	West	0.6%	2.5%	medium	high	standard	lenient
Arkansas AR	South	0.6%	4.4%	high	high	standard	lenient
California CA	West	0.7%	13.3%	low	medium	restrictive	restrictive
Colorado CO	West	0.5%	4.4%	medium	high	standard	lenient
Connecticut CT	Northeast	2%	7%	low	medium	standard	lenient
Delaware DE	Northeast	0.6%	6.6%	medium	high	standard	lenient
Florida FL	South	0.9%	None	medium	high	standard	lenient
Georgia GA	South	1%	5.4%	medium	high	standard	lenient
Hawaii HI	West	0.3%	11%	low	medium	standard	restrictive
Idaho ID	West	0.7%	5.8%	medium	high	standard	lenient
Illinois IL	Midwest	2.3%	4.95%	medium	high	standard	lenient
Indiana IN	Midwest	0.9%	3.2%	high	high	standard	lenient
Iowa IA	Midwest	1.5%	3.8%	medium	high	standard	lenient
Kansas KS	Midwest	1.5%	5.7%	high	high	standard	lenient
Kentucky KY	South	0.9%	4.5%	high	high	standard	lenient
Louisiana LA	South	0.6%	4.25%	high	high	standard	restrictive
Maine ME	Northeast	1.2%	7.15%	medium	high	standard	lenient
Maryland MD	Northeast	1%	5.75%	medium	high	standard	lenient
Massachusetts MA	Northeast	1.2%	9%	low	high	standard	lenient
Michigan MI	Midwest	1.4%	4.25%	high	high	standard	lenient
Minnesota MN	Midwest	1.1%	9.85%	medium	high	standard	lenient
Mississippi MS	South	0.8%	4.7%	high	high	standard	lenient
Missouri MO	Midwest	1%	4.95%	high	high	standard	lenient
Montana MT	West	0.8%	6.75%	low	high	standard	lenient
Nebraska NE	Midwest	1.7%	6.84%	medium	high	standard	lenient
Nevada NV	West	0.6%	None	medium	high	standard	restrictive
New Hampshire NH	Northeast	1.9%	None	medium	high	standard	lenient
New Jersey NJ	Northeast	2.5%	10.75%	low	medium	standard	lenient
New Mexico NM	West	0.8%	5.9%	medium	high	standard	lenient
New York NY	Northeast	1.7%	10.9%	low	medium	restrictive	restrictive
North Carolina NC	South	0.8%	4.5%	medium	high	standard	lenient
North Dakota ND	Midwest	1%	2.9%	medium	high	standard	lenient
Ohio OH	Midwest	1.6%	3.99%	high	high	standard	lenient
Oklahoma OK	South	0.9%	4.75%	high	high	standard	lenient
Oregon OR	West	1%	9.9%	low	medium	standard	restrictive
Pennsylvania PA	Northeast	1.6%	3.07%	high	high	standard	lenient
Rhode Island RI	Northeast	1.5%	5.99%	low	medium	standard	lenient
South Carolina SC	South	0.6%	6.5%	high	high	standard	lenient
South Dakota SD	Midwest	1.2%	None	medium	high	standard	lenient
Tennessee TN	South	0.7%	None	medium	high	standard	restrictive
Texas TX	South	1.9%	None	high	high	standard	lenient
Utah UT	West	0.6%	4.85%	medium	high	standard	lenient
Vermont VT	Northeast	1.8%	8.75%	low	high	standard	lenient
Virginia VA	South	0.9%	5.75%	medium	high	standard	lenient
Washington WA	West	1%	None	medium	high	standard	lenient
West Virginia WV	South	0.6%	5.12%	high	high	standard	lenient
Wisconsin WI	Midwest	2.1%	7.65%	high	high	standard	lenient
Wyoming WY	West	0.6%	None	medium	high	standard	lenient

DSCR / LLC: high · medium · low. Prepay: standard · restrictive. STR: lenient · restrictive. All four are this site's own classification — see the note above the table.

Questions

What do the DSCR, LLC, prepay and STR columns actually mean?

They are this site’s own directional read, not a lender’s underwriting policy, a law firm’s opinion, or a licensing determination. DSCR-friendliness weighs each state’s property tax burden against any rent-to-price detail on file; the other three read whatever entity-formation, prepayment-penalty and short-term-rental detail the state’s own note describes, and are marked directional where it doesn’t.

Which states have no state income tax?

9 states in this dataset charge no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.

How much does property tax vary state to state?

From 0.3% in Hawaii to 2.5% in New Jersey — a real, direct input into a DSCR loan’s monthly PITIA, since a higher escrow line means a higher rent is needed to clear the same coverage ratio at the same price.

Does this page say which lenders lend in which state?

No, on purpose. Only 14 of the 38 lenders in the directory publish a states-covered figure at all, and it is a count, not a list of which states. Confirm coverage directly with each lender.