10 Cities with the Highest Real Estate Taxes — 4 Are in the Same State
Written by
Stephanie Mickelson
Edited by
Zuri Anderson
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SmartAsset’s ranking of the cities with the highest property tax percentage in relation to home values revealed that four of the top 10 are from the same state: Illinois.
The rest of the top 10 cities are located in East Coast states with the exception of Pearland, Texas. According to 2022 data from the Tax Foundation, New Jersey’s effective tax rate on owner-occupied property was 2.08%, followed by Illinois at 1.95%.
SmartAsset’s study shows that some cities surpass these rates and, being in a higher tax rate state, end up at the top of the list of cities with the highest real estate taxes.
Also learn more about the best states to buy real estate property in the next five years.
1. Peoria, Illinois
- Percent of property taxes in relation to home’s value: 2.64%
The median home value in Peoria as reported by SmartAsset is $168,900, and the percent of the home value paid for property taxes was 2.64%. For homeowners with a mortgage, the amount they paid per year in property taxes equaled a median amount of $4,455.
2. Rockford, Illinois
- Percent of property taxes in relation to home’s value: 2.46%
Rockford ranks second, and homeowners with a mortgage pay a median of $3,452. Homes with a mortgage have a median value of $140,300. Without a mortgage, homeowners pay a median of $2,868 in real estate taxes.
3. Waterbury, Connecticut
- Percent of property taxes in relation to home’s value: 2.39%
Waterbury’s median home value of $234,400 means that homeowners who have a mortgage pay a median of $5,607 in property taxes, and homeowners who don’t pay a median of $4,892.
4. Syracuse, New York
- Percent of property taxes in relation to home’s value: 2.36%
Homeowners in Syracuse pay a median of $3,254 in property taxes if they have a mortgage and $3,044 if they don’t. Median home values fall at $137,800, the second lowest in the top 10.
5. Albany, New York
- Percent of property taxes in relation to home’s value: 2.34%
The Albany median home value is $237,700, and median real estate taxes paid are $5,561 for homeowners with a mortgage. Without a mortgage, homeowners pay a median of $3,920.
6. Paterson, New Jersey
- Percent of property taxes in relation to home’s value: 2.31%
Even though Paterson, New Jersey is ranked sixth, the median amount of property tax paid by homeowners with a mortgage was $10,000, tied with Elizabeth, New Jersey (14th) for the highest amount in the top 20 cities. The median home value in Paterson is $432,000.
7. Elgin, Illinois
- Percent of property taxes in relation to home’s value: 2.23%
Elgin has a median home value of $287,300, which makes the median property tax amount $6,394 for owner-occupied homes with a mortgage. Without a mortgage, homeowners pay a median amount of $4,897.
8. Aurora, Illinois
- Percent of property taxes in relation to home’s value: 2.21%
Aurora, the fourth Illinois city to make the top 10, has a median home value of $285,300 and a median real estate tax of $6,310 for homes with a mortgage and $5,359 for homes without.
9. Rochester New York
- Percent of property taxes in relation to home’s value: 2.19%
Homeowners in Rochester pay a median of $3,001 in property taxes if they have a mortgage and a median of $2,968 if they don’t. The median home value for owner-occupied homes with a mortgage is $136,900, the lowest in the top 10.
10. Pearland, Texas
- Percent of property taxes in relation to home’s value: 2.16%
The only non-East Coast city in the top 10, Pearland has a median home value of $364,000, and homeowners with a mortgage pay a median of $7,847 in property taxes.
All data is from the SmartAsset study.
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