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
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
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
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
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
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
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
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
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
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
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
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
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
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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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
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
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
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
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
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
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
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
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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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
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
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
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
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
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
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
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
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
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, 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
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
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
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 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
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
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
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
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
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
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
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
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
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 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
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
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
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
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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