Analysis Of Property Tax Rates Across The US: Which Areas Have The Highest Rates?

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Analysis Of Property Tax Rates Across The US: Which Areas Have The Highest Rates?

Apr 14, 2023 | News | 0 comments

As the deadline for filing federal income tax approaches, many individuals have taxes on their minds. According to a recent study by LendingTree, Americans are paying varying amounts of property taxes, with some areas having higher or lower rates than others. The amount of property taxes, also known as real estate taxes, can be influenced by several factors, including the location and value of the home.

Major Findings:

  • The median property taxes in the 50 largest metropolitan areas of the United States can vary greatly. In comparison, Birmingham, Alabama has the lowest annual median property taxes, which are $8,096 less than those in the New York metropolitan area, where they are the highest.
  • Among the 50 largest metropolitan areas in the US, Birmingham, Alabama is the only one where the median property taxes are below $1,000 annually. Homeowners in Birmingham pay a median property tax amount of $995, which is slightly below this threshold. In comparison, the median real estate taxes paid by residents in the next two metropolitan areas with the lowest taxes, New Orleans and Memphis, Tennessee, are $1,506 and $1,672 per year, respectively.
  • The metropolitan areas where property taxes are the highest are New York, San Jose (California), and San Francisco. It is not surprising that these areas, known for their expensive real estate, require homeowners to pay significant amounts in property taxes annually. The median property tax payment in New York is $9,091, while in San Jose and San Francisco, it is $8,858 and $7,335, respectively.
  • Over the last two years, median property taxes have increased in all of the 50 largest metropolitan areas of the United States. Among them, Tampa, Florida saw the highest increase, with a median amount paid increase of 18.0% from 2019 to 2021. Meanwhile, Hartford, Connecticut saw the smallest increase, with just 1.1%.
  • On average, homes without a mortgage have median property taxes that are $692 less expensive than homes with mortgages. The reasons behind this difference can vary, from lower home values for properties without a mortgage to tax exemptions or reductions in some states for older homeowners who are more likely to own their home outright.