Yahoo Finance Think your housing expenses are steep? Here's a list of the 5 metro areas with the highest property taxes in the country
Homeowners often celebrate when the value of their property increases, at least until tax time. That's when many realize their housing expenses have also gone up.
In many states, property tax rates are tied to home value. So when that value jumps — based on regularly scheduled estimates or the sale price of the property — your tax bill can shoot up, too.
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But not every homeowner faces the same tax burden. According to an analysis of Census Bureau data by Construction Coverage, effective property tax rates in for owner-occupied homes in metro areas range from 0.2% (Kahului-Wailuku-Lahaina of Hawaii) to 2.4% on the East Coast. At those rates, property taxes can range from $600 to $7,200 for a home valued at $300,000.
Here's where the analysis shows property taxes run highest.
5. Kankakee, Ill.
Effective property tax rate: 2.2%
Median home value: $165,700
Median property taxes paid: $4,117
Illinois comes second to New Jersey for the state with the highest effective property tax rate in the nation at 1.9%, according to Construction Coverage. But residents of Kankanee pay a higher premium for homeownership than other Illinoisans, at 2.2%, and homeowners in this small agricultural and manufacturing center have seen home values skyrocket in recent years.
4. Rockford, Ill.
Effective property tax rate: 2.3%
Median home value: $149,800
Median property taxes paid: $3,581
Rockford, Ill., is situated about 90 miles east of Chicago. The median household income in this small city, which has a population of around 150,000, is $56,746. Unemployment rates are high in Rockford, and yet as in Kankakee, residents have seen property values explode.
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3. Syracuse, N.Y.
Effective property tax rate: 2.3%
Median home value: $164,000
Median property taxes paid: $4,188
According to the Census Bureau, the median value of owner-occupied housing units in this snowy, midsize city was $99,200 between 2017 and 2021. Despite rapidly rising home prices, Homebuyer.com named Syracuse the sixth most affordable city to buy a house in the U.S.
2. Rochester, N.Y.
Effective property tax rate: 2.4%
Median home value: $171,000
Median property taxes paid: $4,586
Rochester, N.Y., is among those cities boasting the nation’s highest effective property tax rate of 2.4%. In 2023, U.S. News named this location the 26th best place to live in the U.S., stating the cost of living as well below the national average.
1. Trenton-Princeton, N.J.
Effective property tax rate: 2.4%
Median home value: $311,900
Median property taxes paid: $8,070
The municipality of Princeton and city of Trenton are located in New Jersey's Mercer County, in the center of the Garden State. While homeowners pay the same effective property tax rate as in Rochester, the median property value is much higher, according to Construction Coverage.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
