Top 15 Big Cities for Real Estate Value, Taxes, and Job Opportunities

In the quest for a place to call home, individuals and families weigh a myriad of factors to find the perfect balance between affordability, quality of life, and economic opportunity. The United States, with its vast and varied landscape, offers a plethora of cities each boasting unique advantages for residents. From the sun-drenched beaches of Florida to the tech-rich valleys of California, the choice of where to settle involves careful consideration of real estate values, tax implications, and the vibrancy of local job markets.

To identify the cities most and least favorable for retirees in terms of taxation, GOBankingRates analyzed the 50 largest U.S. cities by population, utilizing Zillow’s data from December 2022. The evaluation was based on five key metrics: the total estimated annual taxes paid in retirement, the state’s effective retirement tax rate, annual property taxes paid, the estimated property tax rate, and the sales tax rate. While a 0% tax rate significantly contributed to the tax-friendly status of many cities, the absence of retirement taxes alone did not guarantee a city’s tax-friendliness. For instance, cities like Jacksonville, Florida; Chicago, Illinois; and Nashville, Tennessee, despite their 0% tax rates, were deemed less tax-friendly due to their combination of high sales taxes and substantial annual property taxes.

This article delves into the top 15 cities that stand out for their compelling combination of affordable real estate, favorable tax conditions, especially for retirees, and robust job opportunities, providing a comprehensive guide for anyone considering making a move.

• Real Estate Value: With an average home value of $305,332 and a property tax rate of 0.87%, Jacksonville offers affordable living in a growing market.
• Taxes: No annual retirement taxes and a 0% effective retirement tax rate, coupled with a 7.5% sales tax, make it tax-friendly for retirees.
• Job Opportunities: A diverse economy with strong sectors in finance, transportation, and health care.

• Real Estate Value: Homes average at $414,386 with a low property tax rate of 0.77%.
• Taxes: Zero retirement taxes and an effective rate of 0%, despite a higher sales tax of 8.38%.
• Job Opportunities: Robust in hospitality, entertainment, and an emerging tech scene.

• Real Estate Value: The city’s home value stands at $393,373, with a property tax rate of 0.95%.
• Taxes: No retirement taxes and a sales tax rate of 6.5% enhance its appeal.
• Job Opportunities: Strong in tourism, entertainment, and a growing tech industry.

• Real Estate Value: With home values at $394,195 and a property tax rate of 1.17%, Tampa is a hotspot for real estate investment.
• Taxes: Zero retirement taxes and a 7.5% sales tax rate.
• Job Opportunities: Opportunities abound in healthcare, finance, and technology sectors.

• Real Estate Value: The city boasts a vibrant real estate market with home values at $432,898 and a 1% property tax rate.
• Taxes: No retirement taxes and a higher sales tax of 9.25%.
• Job Opportunities: Music, healthcare, and education sectors are thriving.

• Real Estate Value: Offers the most affordable real estate among the top cities with an average home value of $146,610 and a 1.43% property tax rate.
• Taxes: Zero retirement taxes, with the highest sales tax rate on the list at 9.75%.
• Job Opportunities: Key industries include logistics, healthcare, and music/entertainment.

• Real Estate Value: High-end market with an average home value of $592,347 and a 1.03% property tax rate.
• Taxes: No retirement taxes and a 7% sales tax rate.
• Job Opportunities: Strong in tourism, finance, and international trade.

• Real Estate Value: A growing market with home values at $410,608 and a 1.16% property tax rate.
• Taxes: No retirement taxes and an 8.9% sales tax rate.
• Job Opportunities: A major hub for media, technology, and transportation.

• Real Estate Value: With an average home value of $411,674 and a low property tax rate of 0.61%.
• Taxes: Annual retirement taxes of $962 with an effective rate of 1.35%.
• Job Opportunities: A growing tech scene, manufacturing, and healthcare.

• Real Estate Value: Offers an affordable urban living option with an average home value of $206,804 and a 1.02% property tax rate.
• Taxes: No retirement taxes and an 8% sales tax rate.
• Job Opportunities: Education, healthcare, and tech startups are prominent sectors.

• Real Estate Value: Urban living with an average home value of $275,902 and a high property tax rate of 1.53%.
• Taxes: No retirement taxes and a high sales tax of 10.25%.
• Job Opportunities: Diverse economy with finance, technology, and manufacturing.

• Real Estate Value: Affordable housing with an average value of $203,818 and the highest property tax rate on the list at 2.03%.
• Taxes: No retirement taxes and a 7.25% sales tax rate.
• Job Opportunities: Defense, manufacturing, and cross-border trade are key.

• Real Estate Value: High-end market with an average home value of $927,699 and a 0.96% property tax rate.
• Taxes: No retirement taxes and a high sales tax of 10.25%.
• Job Opportunities: Strong in tech, aerospace, and healthcare sectors.

• Real Estate Value: A booming market with an average home value of $613,233 and a low property tax rate of 0.59%.
• Taxes: Annual retirement taxes of $1,506 with an effective rate of 2.11%.
• Job Opportunities: A hub for technology, biotech, and tourism.

• Real Estate Value: Offers good value with an average home value of $264,130 and a high property tax rate of 2.37%.
• Taxes: No retirement taxes and an 8.25% sales tax rate.
• Job Opportunities: Military, healthcare, and tourism are significant sectors.

Methodology: GOBankingRates looked at the 50 biggest cities in the U.S. by housing market according to Zillow’s December 2022 data and ranked them to determine the most and least tax-friendly cities for retirees. Each city was scored on: (1) its estimated total amount paid in retirement taxes annually. This figure was calculated by state, assuming a single-filer turning 65 in 2032, receiving the national average annual amount in retirement benefits (sourced from the Social Security Administration’s February 2023 Monthly Statistical Snapshot) and collecting the majority of their income from a retirement account (assuming retirement benefits account for 30% of total income, as estimated by the SSA Fact Sheet). (2) the effective retirement tax rate in each state, calculated as the percentage of total income paid in retirement taxes. (3) the average amount paid in property taxes annually, calculated by using Tax-Rates.org’s Property Tax Calculator to apply the appropriate county, parish, or district’s tax rates to the estimated 2023 median home value for each city (as sourced from Zillow’s March 2023 Housing Data). (4) the estimated property tax rate in its county, parish, or district from Tax-Rates.org. and (5) the sales tax rate in each city, according to Avalara. All 50 cities were then ranked according to their scores on the above 5 factors, with sales tax weighted at 0.5x the other factors. All data was compiled on and up-to-date as of 04/20/23. Lead Researcher: Andrew M.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.