Property taxes are a critical factor for homebuyers, often viewed as a hidden cost that can significantly affect affordability. A recent analysis by SmartAsset highlighted the cities with the highest property taxes relative to home value, revealing a trend in the Northeast and Midwest, particularly in Illinois and New York. Illinois holds the second-highest effective property tax rate in the nation at 2.1%, while Monroe County in New York has an even higher rate at 2.9%. Despite Texas's lack of an income tax, its cities also rank high in property tax reliance, indicating a complex tax landscape for homebuyers.
SmartAsset ranked 342 of the largest cities in the US to find where homeowners are paying the highest property taxes relative to home value, using data from the US Census Bureau's 2023 American Community Survey.
According to SmartAsset, Illinois has the second-highest property taxes in the US, with a statewide average effective tax rate of 2.1%. That's more than twice the national average rate of 0.9%.
Property taxes are set by the local municipality, there's high variability within the state. While New York City is infamous for its sky-high cost of living, property taxes in the city are actually in line with the national average of 0.9%.
Many cities in upstate New York also made the top 10 list. Monroe County, located in upstate New York, has one of the highest effective property tax rates in the state, at 2.9%.
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