Cities with the Highest Property Taxes

With President Trump’s Tax Cuts and Jobs Act in effect, living in a high-tax state is now even more expensive than before. Prior to the new law, taxpayers in those states benefited from the ability to deduct the full amount of their state and local tax (SALT) payments on their federal returns. However, starting with the 2018 tax year, the SALT deduction is capped at $10,000. As a result, taxpayers who pay more than that amount each year will likely be faced with higher federal tax bills. The new SALT deduction limit will hit high-income households (especially property owners) in high-tax states—for example, California, New York, and New Jersey—the hardest.

There’s a wide variation in how much people in different locations pay in taxes and what those taxes go toward. A recent study by Lattice Publishing highlights the differences at the state level. While federal income taxes go toward national programs like Medicare, Social Security, interest on the national debt, and discretionary spending, state and local taxes are put toward local needs, such as public education, municipalities, construction, and maintenance.

Taxpayers in every state are subject to property taxes, which are primarily levied by cities, counties, and school districts, not the state. Property taxes are calculated based on a property’s fair market value, an assessment rate, and the local nominal tax rate, which is sometimes referred to as the “mill levy.” The assessment rate is the percentage of the property’s fair market value that is subject to taxation. This rate ranges widely by location—from a few percentage points up to 100 percent. The nominal tax rate, which also varies widely, is calculated based on what the city, county, and school districts require to fund operations. Together, the assessment rate and the nominal tax rate determine an effective tax rate that can be used to compare property tax burdens across different locations.

According to the U.S. Census Bureau, the median property tax bill for American households was $2,428 in 2017. But depending on the state, that amount ranges from a high of $8,124 per year in New Jersey to a low of $571 in Alabama. Nationwide, states in the Northeast and on the West Coast tend to pay the highest median property taxes, which reflects a combination of higher state/local tax rates and higher home values.

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With so much geographic variation in property taxes, picking the right location to buy or build a new home can go a long way in lowering the ultimate tax burden. To help homeowners and builders, researchers at Construction Coverage analyzed the property tax rates for the largest city in each state and determined how much property taxes a typical resident would pay in those cities. The city-level tax data is from a 2017 study conducted by the Government of the District of Columbia and median home values are from Zillow. Here’s what Construction Coverage found:

Property Taxes for the Largest City in Every State

Alabama Birmingham F44C8K

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Birmingham, AL

  • Effective property tax rate: 0.725%
  • Nominal property tax rate: 7.250%
  • Assessment rate: 10.0%
  • Median home value: $144,600
  • Tax burden for median-value home: $1,048 per year
Alaska Anchorage PD600C

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Anchorage, AK

  • Effective property tax rate: 1.566%
  • Nominal property tax rate: 1.566%
  • Assessment rate: 100.0%
  • Median home value: $333,500
  • Tax burden for median-value home: $5,223 per year
Arizona Phoenix PAN2Y4

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Phoenix, AZ

  • Effective property tax rate: 1.336%
  • Nominal property tax rate: 13.360%
  • Assessment rate: 10.0%
  • Median home value: $241,500
  • Tax burden for median-value home: $3,226 per year
Arkansas Little Rock M5RKEB 1

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Little Rock, AR

  • Effective property tax rate: 1.400%
  • Nominal property tax rate: 7.000%
  • Assessment rate: 20.0%
  • Median home value: $140,500
  • Tax burden for median-value home: $1,967 per year
California Los Angeles F68171

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Los Angeles, CA

  • Effective property tax rate: 1.140%
  • Nominal property tax rate: 1.140%
  • Assessment rate: 100.0%
  • Median home value: $689,500
  • Tax burden for median-value home: $7,860 per year
Colorado Denver E78J82

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Denver, CO

  • Effective property tax rate: 0.578%
  • Nominal property tax rate: 8.033%
  • Assessment rate: 7.2%
  • Median home value: $427,200
  • Tax burden for median-value home: $2,471 per year
Connecticut Bridgeport M7P0BX

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Bridgeport, CT

  • Effective property tax rate: 3.425%
  • Nominal property tax rate: 5.437%
  • Assessment rate: 63.0%
  • Median home value: $174,700
  • Tax burden for median-value home: $5,984 per year
Delaware Wilmington HXE1X9

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Wilmington, DE

  • Effective property tax rate: 1.603%
  • Nominal property tax rate: 5.319%
  • Assessment rate: 30.1%
  • Median home value: $232,700
  • Tax burden for median-value home: $3,729 per year
District of Columbia EGNM0Y

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Washington, DC

  • Effective property tax rate: 0.850%
  • Nominal property tax rate: 0.850%
  • Assessment rate: 100.0%
  • Median home value: $581,200
  • Tax burden for median-value home: $4,940 per year
Florida Jacksonville EE563W

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Jacksonville, FL

  • Effective property tax rate: 1.823%
  • Nominal property tax rate: 1.823%
  • Assessment rate: 100.0%
  • Median home value: $175,600
  • Tax burden for median-value home: $3,201 per year
Georgia Atlanta EEX7HJ

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Atlanta, GA

  • Effective property tax rate: 1.728%
  • Nominal property tax rate: 4.319%
  • Assessment rate: 40.0%
  • Median home value: $259,200
  • Tax burden for median-value home: $4,478 per year
Hawaii Honolulu H601A4

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Honolulu, HI

  • Effective property tax rate: 0.350%
  • Nominal property tax rate: 0.350%
  • Assessment rate: 100.0%
  • Median home value: $677,300
  • Tax burden for median-value home: $2,371 per year
Idaho Boise F5NJKM

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Boise, ID

  • Effective property tax rate: 1.534%
  • Nominal property tax rate: 1.611%
  • Assessment rate: 95.2%
  • Median home value: $291,400
  • Tax burden for median-value home: $4,470 per year

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Illinois Chicago P7MRNE

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Chicago, IL

  • Effective property tax rate: 2.153%
  • Nominal property tax rate: 7.266%
  • Assessment rate: 29.6%
  • Median home value: $228,500
  • Tax burden for median-value home: $4,919 per year
Indiana Indianapolis KHJR75

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Indianapolis, IN

  • Effective property tax rate: 2.754%
  • Nominal property tax rate: 2.754%
  • Assessment rate: 100.0%
  • Median home value: $141,000
  • Tax burden for median-value home: $3,883 per year
Iowa Des Moines E8GE0E

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Des Moines, IA

  • Effective property tax rate: 2.642%
  • Nominal property tax rate: 4.750%
  • Assessment rate: 55.6%
  • Median home value: $140,300
  • Tax burden for median-value home: $3,707 per year
Kansas Wichita J222PW

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Wichita, KS

  • Effective property tax rate: 1.349%
  • Nominal property tax rate: 11.730%
  • Assessment rate: 11.5%
  • Median home value: $127,300
  • Tax burden for median-value home: $1,717 per year
Kentucky Louisville KYXTGP

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Louisville, KY

  • Effective property tax rate: 1.251%
  • Nominal property tax rate: 1.251%
  • Assessment rate: 100.0%
  • Median home value: $158,600
  • Tax burden for median-value home: $1,985 per year
Louisiana New Orleans HDEAGR

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New Orleans, LA

  • Effective property tax rate: 1.650%
  • Nominal property tax rate: 16.500%
  • Assessment rate: 10.0%
  • Median home value: $180,800
  • Tax burden for median-value home: $2,983 per year
Maine Portland HAAAPW

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Portland, ME

  • Effective property tax rate: 2.035%
  • Nominal property tax rate: 2.165%
  • Assessment rate: 94.0%
  • Median home value: $312,400
  • Tax burden for median-value home: $6,358 per year
Maryland Baltimore GYFB3E

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Baltimore, MD

  • Effective property tax rate: 2.360%
  • Nominal property tax rate: 2.360%
  • Assessment rate: 100.0%
  • Median home value: $120,100
  • Tax burden for median-value home: $2,834 per year
Massachusetts Boston HT4181

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Boston, MA

  • Effective property tax rate: 1.048%
  • Nominal property tax rate: 1.048%
  • Assessment rate: 100.0%
  • Median home value: $599,400
  • Tax burden for median-value home: $6,282 per year

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Michigan Detroit ENA9Y7

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Detroit, MI

  • Effective property tax rate: 3.405%
  • Nominal property tax rate: 6.810%
  • Assessment rate: 50.0%
  • Median home value: $160,000
  • Tax burden for median-value home: $5,448 per year
Minnesota Minneapolis F47CET

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Minneapolis, MN

  • Effective property tax rate: 1.281%
  • Nominal property tax rate: 1.360%
  • Assessment rate: 94.2%
  • Median home value: $264,700
  • Tax burden for median-value home: $3,391 per year
Mississippi Jackson JATF7J 1

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Jackson, MS

  • Effective property tax rate: 1.894%
  • Nominal property tax rate: 18.940%
  • Assessment rate: 10.0%
  • Median home value: $143,900
  • Tax burden for median-value home: $2,725 per year
Missouri Kansas City F6X6P6

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Kansas City, MO

  • Effective property tax rate: 1.469%
  • Nominal property tax rate: 7.730%
  • Assessment rate: 19.0%
  • Median home value: $148,400
  • Tax burden for median-value home: $2,180 per year
Montana Billings K5D20F

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Billings, MT

  • Effective property tax rate: 0.952%
  • Nominal property tax rate: 70.550%
  • Assessment rate: 1.4%
  • Median home value: $236,600
  • Tax burden for median-value home: $2,253 per year
Nebraska Omaha JE2A2N

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Omaha, NE

  • Effective property tax rate: 2.091%
  • Nominal property tax rate: 2.249%
  • Assessment rate: 93.0%
  • Median home value: $173,400
  • Tax burden for median-value home: $3,626 per year
Nevada Las Vegas KFNT58

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Las Vegas, NV

  • Effective property tax rate: 1.147%
  • Nominal property tax rate: 3.278%
  • Assessment rate: 35.0%
  • Median home value: $273,500
  • Tax burden for median-value home: $3,138 per year
New Hampshire Manchester H3M0PH

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Manchester, NH

  • Effective property tax rate: 2.102%
  • Nominal property tax rate: 2.330%
  • Assessment rate: 90.2%
  • Median home value: $239,500
  • Tax burden for median-value home: $5,033 per year
New Jersey Newark JATF9N

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Newark, NJ

  • Effective property tax rate: 3.031%
  • Nominal property tax rate: 3.560%
  • Assessment rate: 85.1%
  • Median home value: $249,900
  • Tax burden for median-value home: $7,574 per year
New Mexico Albuquerque CXP6M8

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Albuquerque, NM

  • Effective property tax rate: 1.622%
  • Nominal property tax rate: 4.872%
  • Assessment rate: 33.3%
  • Median home value: $200,700
  • Tax burden for median-value home: $3,256 per year
New York New York M3DGHF

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New York, NY

  • Effective property tax rate: 0.817%
  • Nominal property tax rate: 19.920%
  • Assessment rate: 4.1%
  • Median home value: $680,000
  • Tax burden for median-value home: $5,554 per year
North Carolina Charlotte FC0BCK 1

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Charlotte, NC

  • Effective property tax rate: 1.036%
  • Nominal property tax rate: 1.294%
  • Assessment rate: 80.0%
  • Median home value: $224,200
  • Tax burden for median-value home: $2,322 per year
North Dakota Fargo K346CY

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Fargo, ND

  • Effective property tax rate: 1.119%
  • Nominal property tax rate: 28.550%
  • Assessment rate: 3.9%
  • Median home value: $221,700
  • Tax burden for median-value home: $2,481 per year
Ohio Columbus P1R4RP

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Columbus, OH

  • Effective property tax rate: 2.050%
  • Nominal property tax rate: 6.833%
  • Assessment rate: 30.0%
  • Median home value: $152,300
  • Tax burden for median-value home: $3,122 per year
Oklahoma Oklahoma City KHFMFN 1

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Oklahoma City, OK

  • Effective property tax rate: 1.247%
  • Nominal property tax rate: 11.335%
  • Assessment rate: 11.0%
  • Median home value: $129,900
  • Tax burden for median-value home: $1,620 per year
Oregon Portland B5XDD2

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Portland, OR

  • Effective property tax rate: 1.258%
  • Nominal property tax rate: 2.320%
  • Assessment rate: 54.2%
  • Median home value: $426,300
  • Tax burden for median-value home: $5,364 per year
Pennsylvania Philadelphia HE88C9

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Philadelphia, PA

  • Effective property tax rate: 1.400%
  • Nominal property tax rate: 1.400%
  • Assessment rate: 100.0%
  • Median home value: $160,200
  • Tax burden for median-value home: $2,242 per year
Rhode Island Providence ERPB9J

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Providence, RI

  • Effective property tax rate: 1.692%
  • Nominal property tax rate: 1.880%
  • Assessment rate: 90.0%
  • Median home value: $211,300
  • Tax burden for median-value home: $3,575 per year
South Carolina Charleston EWNAHB

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Charleston, SC

  • Effective property tax rate: 1.154%
  • Nominal property tax rate: 28.860%
  • Assessment rate: 4.0%
  • Median home value: $322,300
  • Tax burden for median-value home: $3,721 per year
South Dakota Sioux Falls KKP6FC

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Sioux Falls, SD

  • Effective property tax rate: 1.514%
  • Nominal property tax rate: 1.781%
  • Assessment rate: 85.0%
  • Median home value: $189,100
  • Tax burden for median-value home: $2,863 per year
Tennessee Nashville EAN9K1

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Nashville, TN

  • Effective property tax rate: 0.818%
  • Nominal property tax rate: 3.270%
  • Assessment rate: 25.0%
  • Median home value: $264,100
  • Tax burden for median-value home: $2,159 per year
Texas Houston G2C895

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Houston, TX

  • Effective property tax rate: 2.530%
  • Nominal property tax rate: 2.530%
  • Assessment rate: 100.0%
  • Median home value: $185,600
  • Tax burden for median-value home: $4,696 per year
Utah Salt Lake City F410F1

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Salt Lake City, UT

  • Effective property tax rate: 0.783%
  • Nominal property tax rate: 1.425%
  • Assessment rate: 55.0%
  • Median home value: $398,900
  • Tax burden for median-value home: $3,125 per year
Vermont Burlington GF1DFA

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Burlington, VT

  • Effective property tax rate: 2.044%
  • Nominal property tax rate: 2.587%
  • Assessment rate: 79.0%
  • Median home value: $319,200
  • Tax burden for median-value home: $6,525 per year
Virginia Virginia Beach F2K2D8

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Virginia Beach, VA

  • Effective property tax rate: 0.891%
  • Nominal property tax rate: 0.990%
  • Assessment rate: 90.0%
  • Median home value: $266,000
  • Tax burden for median-value home: $2,370 per year
Washington Seattle MATJJM

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Seattle, WA

  • Effective property tax rate: 0.882%
  • Nominal property tax rate: 0.950%
  • Assessment rate: 92.8%
  • Median home value: $730,000
  • Tax burden for median-value home: $6,436 per year
West Virginia Charleston KX9G32

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Charleston, WV

  • Effective property tax rate: 0.854%
  • Nominal property tax rate: 1.424%
  • Assessment rate: 60.0%
  • Median home value: $107,900
  • Tax burden for median-value home: $922 per year
Wisconsin Milwaukee P7MTFR

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Milwaukee, WI

  • Effective property tax rate: 2.732%
  • Nominal property tax rate: 2.732%
  • Assessment rate: 100.0%
  • Median home value: $120,000
  • Tax burden for median-value home: $3,278 per year
Wyoming Cheyenne BNWG01

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Cheyenne, WY

  • Effective property tax rate: 0.952%
  • Nominal property tax rate: 10.017%
  • Assessment rate: 9.5%
  • Median home value: $255,000
  • Tax burden for median-value home: $2,427

Methodology & Full Results

The tax data used in this analysis is from Tax Rates and Tax Burdens In the District of Columbia – A Nationwide Comparison, issued March 2019. The median home value for each city is the most recent Zillow Home Value Index, accessed on March 7, 2019. This statistic includes all  single-family, condominium, and co-operative homes with a county record.

In each city, the tax burden for a median-value home was calculated by multiplying the median home value by the effective property tax rate.

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