Do You Pay Property Taxes on Vacant Land? (2025 Landowner Guide)

Introduction

You just bought a piece of land. There’s no house on it. No utilities. Nothing built yet.

So you might be wondering:

“Do I still have to pay property taxes?”

The short answer is: Yes.

Even if your land is totally vacant — you owe annual property taxes. But the good news? They’re usually low, and there are legal ways to pay even less.

This 2025 guide covers:

• How property taxes on land are calculated

• How much you’ll likely owe

• How to reduce or eliminate your land tax bill

• When taxes become a real risk (like losing your land)

🧾 How Property Taxes on Vacant Land Are Calculated

Your land tax = Assessed Value × Local Tax Rate

Let’s break that down:

1. Assessed Value

• Determined by the county assessor

• Based on recent land sales, comps, and zoning

• Raw land often assessed at $500–$5,000 per acre

2. Mill Rate (Tax Rate)

• Expressed as a “millage” (e.g. 15 mills = 1.5%)

• Varies by county and state

• Rural areas tend to have lower rates

📘 Learn how to estimate taxes by county in the Land Investing Bible

💰 How Much Are Property Taxes on Land in 2025?

Here’s a sample breakdown:

Yes — in many places, you’ll pay less than $20/year for an acre of land.

Want ultra-low-tax parcels?
👉 Use Our Land Finder Tool to Search by County

🛑 What Happens If You Don’t Pay?

Fail to pay property taxes, and the county may:

• Charge interest and late penalties

• Sell your land at a tax auction

• Wipe out your ownership after 2–5 years (state dependent)

Many investors buy land this way — but you don’t want to be on the losing side.

💡 How to Lower or Avoid Property Taxes on Land

Here are some legal strategies:

1. Apply for Agricultural Exemption

• If you grow crops, graze animals, or even let a neighbor do it

• Many states reduce land taxes by 50–90% for ag use

• You must apply through the local assessor’s office

2. Conservation or Wildlife Designation

• Some states offer reduced tax rates for preserving trees, wildlife, or open space

3. File a “Vacant Land Discount”

• Some counties offer lower rates for unused, undeveloped land

4. Challenge the Assessment

• If the county overestimates your land’s value, you can appeal

• Use comps to prove the actual market price is lower

🧠 Other Tax Considerations for Landowners

• No structures? No improvement tax.

• You don’t pay income tax just for owning land

• But if you sell land later, you may owe capital gains tax (unless using 1031 exchange)

📘 Learn how to reduce capital gains tax in our free Land Investing Bible

Final Thoughts

Yes — vacant land still gets taxed. But in 2025, owning raw land remains one of the lowest-cost, low-hassle investments you can make.

Even $50–$200/year in taxes is a small price to pay for:

• Land that appreciates

• Land you can develop or resell

• Land that gives you freedom, privacy, and security

Let us help you find parcels that are low-tax, high-potential, and easy to hold long-term.

Want Land That’s Easy to Hold Long-Term?

• 🔍 Use Our Land Finder Tool to Search by County & Tax Rate

• 🛒 Browse Low-Tax, High-Value Land Deals

• 📘 Download the Free Land Investing Bible

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