Property taxes are a significant factor for homebuyers, often influencing their purchasing decisions more than they realize.
As home values continue to rise, so do the taxes levied by local governments, which are essential for funding public services.
In fact, between 2019 and 2023, median property taxes in the U.S. surged by 23.6%, highlighting the growing financial burden on homeowners.
Certain cities, particularly in the Northeast and Midwest, stand out for their exceptionally high property tax rates.
With some areas reporting effective rates more than twice the national average, understanding these tax implications can be crucial for prospective buyers.
This article delves into the ten cities where real estate taxes are particularly steep, offering insights into how these costs can impact overall home affordability.
1: Rockford, Illinois
Rockford features a notably low median home value at $107,900. However, the real estate taxes in this Illinois city can be burdensome.
Homeowners pay a median of $3,283 annually in property taxes, resulting in an effective tax rate of 3.04% of the median home value.
This high tax rate significantly impacts affordability, making Rockford a city where potential homeowners must carefully consider their financial commitments.
2: Waterbury, Connecticut
Waterbury offers a picturesque setting with access to major metro areas, making it appealing for many homebuyers. However, real estate taxes are notably high.
The average home value in Waterbury stands at $193,300, and homeowners face median annual real estate payments of $5,324.
This results in an effective tax rate of 2.75% of the median home value. Such costs can strain budgets, prompting potential buyers to weigh their options carefully amidst the city’s attractive features.
3: Bridgeport, Connecticut
Bridgeport ranks high on the list of cities with elevated real estate taxes. Homeowners in this charming Connecticut city pay a median annual property tax of $6,130.
This hefty tax amounts to an effective rate of 2.67% based on the median home value of $229,900. Such a tax burden can significantly impact budgets, prompting those considering homeownership to carefully evaluate their financial situations.
With these steep taxes, potential buyers in Bridgeport must weigh the cost of living against the city’s appealing qualities and amenities.
4: Aurora, Illinois
Aurora showcases a median home price of $235,800, making it a more affordable option compared to nearby Chicago.
Homeowners, however, face annual real estate taxes averaging $6,128, translating to an effective tax rate of 2.60%.
This significant tax burden impacts affordability for residents, as they must balance property costs against the city’s amenities and services.
Aurora’s suburban charm and proximity to the metropolitan area make it appealing, but prospective buyers should carefully weigh the financial implications of high real estate taxes before making a commitment.
5: Elgin, Illinois
Elgin, Illinois, ranks as the second most expensive city for real estate taxes in this list. Home prices average around $244,900, which places a notable financial burden on homeowners.
They face annual real estate taxes averaging $6,194, resulting in an effective tax rate of approximately 2.53% of the median home value.
This combination of high property taxes and median home prices creates challenges for potential buyers looking to maintain affordability while securing desirable amenities in the area.
6: Rochester, New York
Rochester stands out for its significant real estate tax burden despite relatively affordable home prices. Homeowners in this Upstate New York city face a median home value of $112,000.
They pay an average of $2,806 annually in property taxes, leading to an effective tax rate of 2.51%.
This high tax rate can add financial strain, causing potential buyers to consider their long-term affordability while weighing the city’s other attractive qualities and amenities.
7: Syracuse, New York
Syracuse stands out as one of the cities with the highest real estate taxes in the U.S. Homeowners face a median annual property tax of $3,026, translating to an effective tax rate of 2.41% based on a median home value of $125,600.
This hefty tax burden could significantly impact budgets and affordability for residents. With a vibrant college atmosphere, Syracuse attracts homebuyers, but they must navigate the steep tax implications that come with settling in this lively city.
8: Peoria, Illinois
Peoria’s homeowners face a significant real estate tax burden, with an average annual payment of $3,402. This amounts to an effective tax rate of 2.37% based on the median home value of $143,500.
Many residents appreciate Peoria’s dense suburban feel, yet the high taxes can deter potential buyers from settling.
Homeowners need to consider how these taxes impact their overall budget, especially in a city where homeownership is prevalent and community amenities are a draw.
9: Lansing, Michigan
Lansing, Michigan, has a median annual real estate tax of $2,597. Homeowners face an effective tax rate of 2.32%, based on a median home value of $112,100.
Many families are drawn to Lansing for its high-rated schools and family-friendly activities, but the tax burden can strain budgets.
Potential buyers need to weigh the benefits of living in this vibrant city against the rising costs associated with property ownership.
The combination of attractive amenities and elevated real estate taxes compels residents to make informed decisions about home investments.
10: Pearland, Texas
Pearland ranks as one of the cities with the highest real estate taxes in the U.S. Homeowners face a median annual property tax of $7,247.
This results in an effective tax rate of 2.31% on a median home value of $313,200. With rising home prices, many homeowners find themselves pinching pennies as property taxes increase.
Pearland’s appealing suburban lifestyle and amenities come with a hefty price tag for residents, making it crucial for potential buyers to consider the financial implications of these high taxes.
Alicia Richards