As home values continue to rise across the United States property taxes are becoming a significant financial consideration for homeowners.
Between 2019 and 2023 median property taxes surged by 23.6% climbing from $2,287 to $2,826. This trend isn’t just a national phenomenon; in fact, 48 out of the 50 most populated metro areas have seen increases in property tax bills.
Cities in the Northeast and Midwest dominate the list of places with the highest real estate taxes relative to home values. For potential homebuyers understanding these costs is crucial as they can dramatically impact overall affordability.
This article explores the ten cities where homeowners face the steepest tax burdens shedding light on the financial landscape of real estate in these areas.
1: Rockford, Illinois
Rockford stands out for its striking real estate tax rate. Median homeowner taxes reach $3,283 annually, pushing the effective tax rate to 3.04% of the median home value of $107,900.
This combination makes Rockford one of the cities burdened by significant property tax expenses, impacting affordability for residents.
2: Waterbury, Connecticut
Real estate taxes in Waterbury average 2.75%, impacting homeowners significantly. The median home value is $193,300, leading to annual real estate payments of approximately $5,324.
Potential buyers should consider these figures carefully, as the combination of high taxes and median home prices affects overall affordability in this city.
3: Bridgeport, Connecticut
Bridgeport residents pay around $6,130 annually in real estate taxes. This figure results in a 2.67% effective tax rate based on the median home value of $229,900.
The combination of higher tax rates and home prices emphasizes the importance for homeowners to be aware of these costs when evaluating affordability in the area.
4: Aurora, Illinois
Aurora, Illinois, stands out with a median home price of $235,800. Homeowners in this city face an average annual real estate tax payment of $6,128, leading to an effective tax rate of 2.60%.
This tax burden significantly impacts affordability for residents, making it crucial for prospective buyers to consider the high costs associated with homeownership here.
5: Elgin, Illinois
Elgin ranks as one of the cities with the highest real estate taxes in the nation. Homeowners pay an average of $6,194 annually, resulting in an effective tax rate of 2.53% based on a median home value of $244,900.
This substantial tax burden highlights the financial challenges facing residents in Elgin, impacting overall housing affordability.
6: Rochester, New York
Rochester, New York, has a notable real estate tax burden. Homeowners here pay a median of $2,806 annually, which equates to an effective tax rate of 2.51% on a median home value of $112,000.
This combination of relatively low home prices and high tax rates significantly affects affordability for residents.
7: Syracuse, New York
Syracuse, New York, has some of the highest real estate taxes in the country. Homeowners here pay an average of $3,026 annually, resulting in a 2.41% effective tax rate on the median home value of $125,600.
This financial burden significantly impacts affordability, making it vital for prospective buyers to factor in these costs before purchasing.
8: Peoria, Illinois
Peoria’s homeowners face the highest property taxes in the nation relative to home values. Residents pay an average of $4,455 annually in property taxes, which is 2.64% of the median home value of $168,900.
This significant tax burden affects affordability, making it essential for buyers to understand these costs before investing in Peoria’s real estate market.
9: Lansing, Michigan
Lansing, Michigan, features a median annual real estate tax of $2,597, representing an effective tax rate of 2.32%.
With a median home value of $112,100, homeowners in Lansing need to factor in these taxes when considering affordability, especially in a city known for its safe neighborhoods and high-rated schools.
10: Pearland, Texas
Pearland ranks high for real estate taxes in the U.S. Homeowners here pay a staggering $7,247 annually in median taxes.
This amounts to an effective tax rate of 2.31% on a median home value of $313,200. These high rates can strain budgets, making affordability a key concern for prospective buyers in the area.
Alicia Richards