As Tax Day quickly approaches, a new report by LendingTree examines property taxes around the country, specifically focusing on the median amount paid annually in each of the nation’s 50 largest metros. With real estate taxes varying based on a home’s location and worth, the report shines a light on which areas of the country will have homeowners paying thousands of dollars more than those in other parts of the country.
Key findings:
- Property taxes can vary significantly across the nation’s 50 largest metros. For example, annual median property taxes in Birmingham, Ala.—where homeowners pay the least in real estate taxes—are about $7,700 cheaper than in the New York metro area, where they’re the highest.
- Birmingham, Ala., is the only metro where median property taxes are less than $1,000 a year.
- New York, San Jose, Calif., and San Francisco are the metros where homeowners pay the most in property taxes. The median amount paid is $8,602 in New York, $7,471 in San Jose and $6,508 in San Francisco.
- Median property taxes on homes without a mortgage are 18% less expensive, on average, than on homes with mortgages. There are various reasons for this, ranging from home values tending to be less expensive on homes without a mortgage to some states having tax exemptions or reductions for older homeowners who may be more likely to own their home outright.
The takeaway:
“Remember that if you’re overburdened by property taxes, or just think that you’re paying too much, you can challenge your assessment. While this doesn’t guarantee that your bill will go down, it can help shed some light on why the government is saying you owe what you do. And, in the best-case scenario, you could end up paying less in taxes,” says Jacob Channel, the report’s author and senior economic analyst at LendingTree.
Click here to read the full report and metro rankings.
