Where real estate taxes are highest in the US

Property taxes are an unavoidable part of owning a home. They are generally wrapped into the mortgage payment to ensure that your home doesn’t incur a lien, or worse—foreclosure. And even after your mortgage ends, property taxes are a lifelong homeowner expense.  These taxes pay for local amenities, such as schools, infrastructure, police, and fire support, among other local services. How much you owe will vary from place to place and may even change over time. And while there may be discounts and exemptions available to some, it’s important to plan for property taxes in your short- and long-term budget as a homeowner.

With this in mind, SmartAsset ranked 342 of the largest U.S. cities to pinpoint where homeowners pay the most in property taxes in relation to their homes’ market values. 

Key Findings

• Two Illinois suburbs have the highest real estate taxes relative to home values. Homeowners with mortgages in Peoria, situated in central Illinois, have the highest relative real estate taxes at 2.64% of the median $168,900 home value. The median annual real estate taxes on these mortgaged homes is $4,455. In second place, Rockford, IL—about 90 miles west of Chicago—homeowners pay a median 2.46% of their $140,300 home values in taxes, or $3,452 annually.
• Median annual real estate taxes top $10,000 in five cities. Paterson, NJ has some of the highest real estate taxes both nominally and relatively, with real estate taxes estimated at 2.31% of median home values and ranking sixth overall. Elizabeth, NJ ranks 14th with 2.05% of the median home value going to real estate taxes. Yonkers, NY (1.82%); Naperville, IL (1.75%); and San Jose, CA (0.79%) also have real estate taxes over $10,000 annually, with various home value levels.
• Southwestern cities dominate for low real estate taxes relative to home values. While Honolulu has the lowest relative real estate taxes with $2,346 median annual payments making up 0.28% of the median $823,500 home values, Arizona and Nevada cities constitute the majority of the cheapest. These include Scottsdale, AZ (0.32%); San Tan Valley, AZ (0.35%); Mesa, AZ (0.35%); Sunrise Manor, NV (0.36%); Surprise, AZ (0.37%); Paradise, NV (0.39%); and Gilbert, AZ (0.40%).
• The median annual real estate tax is only $654 in this city. Montgomery, AL has the lowest annual nominal real estate tax at $654, making up 0.39% of the median home value (ninth-lowest overall). Alabama is also home to the next three-lowest median annual real estate taxes, including Mobile ($992), Tuscaloosa ($1,145), and Birmingham ($1,190).

SmartAsset

Top 10 Cities With the Highest Real Estate Taxes

Cities are ranked based on the highest percentage of median annual real estate taxes paid on owner-occupied homes with a mortgage relative to the median home value of such households. 

1. Peoria, Illinois

• Percent of home value as annual real estate taxes: 2.64%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $4,455
• Median value of owner-occupied homes with a mortgage: $168,900
• Median real estate taxes paid on homes without a mortgage: $2,315
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,476
• Aggregate real estate taxes paid in 2023: $135,405,200

2. Rockford, Illinois

• Percent of home value as annual real estate taxes: 2.46%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $3,452
• Median value of owner-occupied homes with a mortgage: $140,300
• Median real estate taxes paid on homes without a mortgage: $2,868
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,216
• Aggregate real estate taxes paid in 2023: $128,214,000

3. Waterbury, Connecticut

• Percent of home value as annual real estate taxes: 2.39%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $5,607
• Median value of owner-occupied homes with a mortgage: $234,400
• Median real estate taxes paid on homes without a mortgage: $4,892
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,776
• Aggregate real estate taxes paid in 2023: $106,040,300

4. Syracuse, New York

• Percent of home value as annual real estate taxes: 2.36%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $3,254
• Median value of owner-occupied homes with a mortgage: $137,800
• Median real estate taxes paid on homes without a mortgage: $3,044
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,206
• Aggregate real estate taxes paid in 2023: $74,376,400

5. Albany, New York

• Percent of home value as annual real estate taxes: 2.34%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $5,561
• Median value of owner-occupied homes with a mortgage: $237,700
• Median real estate taxes paid on homes without a mortgage: $3,920
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,744
• Aggregate real estate taxes paid in 2023: $96,373,000

6. Paterson, New Jersey

• Percent of home value as annual real estate taxes: 2.31%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $10,000
• Median value of owner-occupied homes with a mortgage: $432,000
• Median real estate taxes paid on homes without a mortgage: $9,694
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,574
• Aggregate real estate taxes paid in 2023: $126,218,300

7. Elgin, Illinois

• Percent of home value as annual real estate taxes: 2.23%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $6,394
• Median value of owner-occupied homes with a mortgage: $287,300
• Median real estate taxes paid on homes without a mortgage: $4,897
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,132
• Aggregate real estate taxes paid in 2023: $177,934,300

8. Aurora, Illinois

• Percent of home value as annual real estate taxes: 2.21%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $6,310
• Median value of owner-occupied homes with a mortgage: $285,300
• Median real estate taxes paid on homes without a mortgage: $5,359
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,887
• Aggregate real estate taxes paid in 2023: $253,707,800

9. Rochester, New York

• Percent of home value as annual real estate taxes: 2.19%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $3,001
• Median value of owner-occupied homes with a mortgage: $136,900
• Median real estate taxes paid on homes without a mortgage: $2,968
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,205
• Aggregate real estate taxes paid in 2023: $110,398,400

10. Pearland, Texas

• Percent of home value as annual real estate taxes: 2.16%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $7,847
• Median value of owner-occupied homes with a mortgage: $364,000
• Median real estate taxes paid on homes without a mortgage: $5,555
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,515
• Aggregate real estate taxes paid in 2023: $247,198,700

Top 10 Cities With the Lowest Real Estate Taxes

Cities are ranked based on the lowest percentage of median annual real estate taxes paid on owner-occupied homes with a mortgage relative to the median home value of such households. 

1. Honolulu, Hawaii

• Percent of home value as annual real estate taxes: 0.28%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $2,346
• Median value of owner-occupied homes with a mortgage: $823,500
• Median real estate taxes paid on homes without a mortgage: $2,675
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,951
• Aggregate real estate taxes paid in 2023: $221,461,800

2. Scottsdale, Arizona

• Percent of home value as annual real estate taxes: 0.32%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $2,773
• Median value of owner-occupied homes with a mortgage: $858,800
• Median real estate taxes paid on homes without a mortgage: $3,130
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,527
• Aggregate real estate taxes paid in 2023: $255,554,800

3. San Tan Valley, Arizona

• Percent of home value as annual real estate taxes: 0.35%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $1,513
• Median value of owner-occupied homes with a mortgage: $427,800
• Median real estate taxes paid on homes without a mortgage: $1,725
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,791
• Aggregate real estate taxes paid in 2023: $52,205,300

4. Mesa, Arizona

• Percent of home value as annual real estate taxes: 0.35%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $1,641
• Median value of owner-occupied homes with a mortgage: $462,400
• Median real estate taxes paid on homes without a mortgage: $1,302
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,826
• Aggregate real estate taxes paid in 2023: $267,814,200

5. Sunrise Manor, Nevada

• Percent of home value as annual real estate taxes: 0.36%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $1,248
• Median value of owner-occupied homes with a mortgage: $344,900
• Median real estate taxes paid on homes without a mortgage: $848
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,543
• Aggregate real estate taxes paid in 2023: $45,230,500

6. Surprise, Arizona

• Percent of home value as annual real estate taxes: 0.37%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $1,668
• Median value of owner-occupied homes with a mortgage: $448,800
• Median real estate taxes paid on homes without a mortgage: $1,904
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,789
• Aggregate real estate taxes paid in 2023: $93,221,600

7. Paradise, Nevada

• Percent of home value as annual real estate taxes: 0.39%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $1,599
• Median value of owner-occupied homes with a mortgage: $405,900
• Median real estate taxes paid on homes without a mortgage: $1,442
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,783
• Aggregate real estate taxes paid in 2023: $54,970,500

8. Montgomery, Alabama

• Percent of home value as annual real estate taxes: 0.40%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $654
• Median value of owner-occupied homes with a mortgage: $164,700
• Median real estate taxes paid on homes without a mortgage: $431
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,208
• Aggregate real estate taxes paid in 2023: $37,985,500

9. Gilbert, Arizona

• Percent of home value as annual real estate taxes: 0.40%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $2,467
• Median value of owner-occupied homes with a mortgage: $615,300
• Median real estate taxes paid on homes without a mortgage: $2,507
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,100
• Aggregate real estate taxes paid in 2023: $181,693,500

10. Chandler, Arizona

• Percent of home value as annual real estate taxes: 0.40%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $2,221
• Median value of owner-occupied homes with a mortgage: $552,600
• Median real estate taxes paid on homes without a mortgage: $2,118
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,922
• Aggregate real estate taxes paid in 2023: $183,115,300

Top 10 Cities With the Highest Aggregate Residential Real Estate Taxes Collected

1. New York, New York

• Aggregate real estate taxes paid in 2023: $7,457,402,200
• Percent of home value as annual real estate taxes: 0.81%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $6,228
• Median value of owner-occupied homes with a mortgage: $765,500
• Median real estate taxes paid on homes without a mortgage: $6,454
• Median monthly housing costs for owner-occupied homes with a mortgage: $3,087

2. Los Angeles, California

• Aggregate real estate taxes paid in 2023: $4,070,373,600
• Percent of home value as annual real estate taxes: 0.72%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $6,702
• Median value of owner-occupied homes with a mortgage: $935,000
• Median real estate taxes paid on homes without a mortgage: $4,184
• Median monthly housing costs for owner-occupied homes with a mortgage: $3,394

3. Chicago, Illinois

• Aggregate real estate taxes paid in 2023: $3,201,888,000
• Percent of home value as annual real estate taxes: 1.52%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $5,146
• Median value of owner-occupied homes with a mortgage: $337,600
• Median real estate taxes paid on homes without a mortgage: $4,000
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,235

4. Houston, Texas

• Aggregate real estate taxes paid in 2023: $2,307,142,700
• Percent of home value as annual real estate taxes: 1.70%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $5,728
• Median value of owner-occupied homes with a mortgage: $336,700
• Median real estate taxes paid on homes without a mortgage: $2,989
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,219

5. Austin, Texas

• Aggregate real estate taxes paid in 2023: $1,935,298,100
• Percent of home value as annual real estate taxes: 1.43%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $8,742
• Median value of owner-occupied homes with a mortgage: $610,100
• Median real estate taxes paid on homes without a mortgage: $7,293
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,768

6. San Diego, California

• Aggregate real estate taxes paid in 2023: $1,873,287,900
• Percent of home value as annual real estate taxes: 0.70%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $6,583
• Median value of owner-occupied homes with a mortgage: $944,200
• Median real estate taxes paid on homes without a mortgage: $4,537
• Median monthly housing costs for owner-occupied homes with a mortgage: $3,204

7. San Jose, California

• Aggregate real estate taxes paid in 2023: $1,837,758,600
• Percent of home value as annual real estate taxes: 0.79%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $10,000
• Median value of owner-occupied homes with a mortgage: $1,258,800
• Median real estate taxes paid on homes without a mortgage: $6,224
• Median monthly housing costs for owner-occupied homes with a mortgage: $3,855

8. Dallas, Texas

• Aggregate real estate taxes paid in 2023: $1,592,898,300
• Percent of home value as annual real estate taxes: 1.69%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $6,727
• Median value of owner-occupied homes with a mortgage: $398,800
• Median real estate taxes paid on homes without a mortgage: $3,435
• Median monthly housing costs for owner-occupied homes with a mortgage: $2,381

9. San Antonio, Texas

• Aggregate real estate taxes paid in 2023: $1,271,058,300
• Percent of home value as annual real estate taxes: 1.77%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $4,944
• Median value of owner-occupied homes with a mortgage: $279,400
• Median real estate taxes paid on homes without a mortgage: $2,981
• Median monthly housing costs for owner-occupied homes with a mortgage: $1,784

10. Seattle, Washington

• Aggregate real estate taxes paid in 2023: $1,234,890,600
• Percent of home value as annual real estate taxes: 0.77%
• Median real estate taxes paid on owner-occupied homes with a mortgage: $6,992
• Median value of owner-occupied homes with a mortgage: $910,300
• Median real estate taxes paid on homes without a mortgage: $6,984
• Median monthly housing costs for owner-occupied homes with a mortgage: $3,369

Data and Methodology

SmartAsset examined data from the Census Bureau’s 1-Year American Community Survey for 2023. The study includes 342 cities with greater than 100,000 in population. Specifically, cities are ranked by the median real estate taxes paid (by homeowners with a mortgage) as a proportion of the median annual housing payments. Any amounts of $10,000 even may actually be higher than $10,000.

This story was produced by SmartAsset and reviewed and distributed by Stacker.