How much you pay in property taxes varies significantly and can be influenced based on the home’s worth and location, among other factors. But, what cities have the most and least expensive property taxes?
LendingTree’s new report analyzed U.S. Census Bureau data on the median amount paid annually in each of the nation’s 50 largest metros to find where the highest, and lowest, property taxes are. The report found that median property taxes have increased in each of the nation’s 50 largest metros since 2019, increasing the most in Tampa, Florida (+18%) and the least in Hartford, Connecticut (+1.1%)
Key highlights:
- Property taxes can vary significantly across the nation’s 50 largest metros. For example, annual median property taxes in Birmingham, Alabama—where homeowners pay the least in real estate taxes—are $8,096 cheaper than in the New York metro, where they’re the highest.
- Median property taxes on homes without a mortgage are $692 less expensive, on average, than on homes with mortgages. Salt Lake City, Utah; Seattle, Washington; Portland, Oregon; Boston, Massachusetts; Virginia Beach, Virginia, and Nashville, Tennessee—the six metros where median property taxes are slightly higher for homes without a mortgage—illustrate there are exceptions.
- The most expensive property taxes are in New York, New York, at $9,091 average for all homes. For homes with a mortgage it’s $9,342, and for homes without a mortgage it’s $8,669.
- Second is San Jose, California, at an average of $8,858. For homes with a mortgage it’s $10,000, and for homes without a mortgage it’s $5,816.
- San Francisco, California comes in third at an average of $7,335. For homes with a mortgage it’s $8,422, and for homes without a mortgage it’s $5,278.
- The most affordable property taxes can be found in Birmingham at $995 average for all homes. For homes with a mortgage it’s $1,152, and for homes without a mortgage it’s $774.
- Birmingham is the only city in the rankings with any property taxes at less than $1,000.
- Second is New Orleans, Louisiana, at an average of $1,506. For homes with a mortgage it’s $1,733, and for homes without a mortgage it’s $1,174.
- Memphis, Tennessee is third at an average of $1,672. For homes with a mortgage it’s $1,810, and for homes without a mortgage it’s $1,372.
Major takeaway:
Jacob Channel, LendingTree’s senior economist and report author, commented that “Though paying property taxes isn’t fun, one of the nice things about them is it can be easy to see their impact. Property taxes are often reinvested directly into the communities from which they came.”
“Real estate taxes are generally used to pay for things people and their families frequently use, like roads, schools and emergency response services—including fire departments,” Channel added. “While it can be easy to take these kinds of public services and infrastructures for granted, maintaining them isn’t cheap. Without the taxes to support them, many things in our communities would likely become unusable for the majority of people—or outright disappear. It’s for this reason that paying property taxes is important.”
Channel concluded, “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.”
For the full report, click here.
