Top 10 Cities with Sky-High Real Estate Taxes: 4 from One State!

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According to a recent analysis, the cities that pack the biggest punch in property tax percentages relative to home values are predominantly found in Illinois. Four of the top ten most expensive cities for property taxes share this Midwestern state!

Interestingly, the remaining cities in the top ten are based on the East Coast, with Pearland, Texas, being the odd one out. Data from 2022 showcases that New Jersey leads the pack with a staggering effective tax rate of 2.08% on owner-occupied properties, closely followed by Illinois at 1.95%.

This study highlights how some cities have tax rates that outshine even these averages, making them contenders for the highest real estate taxes in the country. 

Discover the best states to invest in real estate over the next five years!

1. Peoria, Illinois

• Property Tax Percentage: 2.64%

In Peoria, where the median home value stands at $168,900, homeowners find themselves paying a hefty 2.64% of their home value in property taxes. This amounts to an annual median tax bill of approximately $4,455 for those with a mortgage.

2. Rockford, Illinois

• Property Tax Percentage: 2.46%

Rockford takes the second spot, where homeowners with a mortgage fork out a median tax of $3,452 on a median home value of $140,300. For those without a mortgage, the annual tax bill averages $2,868.

3. Waterbury, Connecticut

• Property Tax Percentage: 2.39%

Homeowners in Waterbury, where the median home value is $234,400, face an average tax bill of $5,607 per year with a mortgage, and $4,892 if they own their home outright.

4. Syracuse, New York

• Property Tax Percentage: 2.36%

Syracuse homeowners with a mortgage pay a median property tax of $3,254, while those without a mortgage pay $3,044. The median home value here is $137,800, making it one of the more affordable cities on this list.

5. Albany, New York

• Property Tax Percentage: 2.34%

In Albany, the median home value is $237,700, resulting in median property taxes of $5,561 for mortgaged homes and $3,920 for those without a mortgage.

6. Paterson, New Jersey

• Property Tax Percentage: 2.31%

Even though Paterson ranks sixth, the median property tax burden for homeowners with a mortgage is a staggering $10,000, tied for the highest among the top 20 cities. The median home value here is $432,000.

7. Elgin, Illinois

• Property Tax Percentage: 2.23%

Elgin has a median home value of $287,300, leading to a median tax bill of $6,394 for those with a mortgage, and $4,897 for homeowners without a mortgage.

8. Aurora, Illinois

• Property Tax Percentage: 2.21%

Aurora, the fourth city from Illinois to land in the top 10, has a median home value of $285,300, resulting in a median real estate tax of $6,310 for mortgaged properties and $5,359 for those without.

9. Rochester, New York

• Property Tax Percentage: 2.19%

Homeowners in Rochester, where the median home value is $136,900 (the lowest in the top 10), pay a median of $3,001 in property taxes if they have a mortgage and $2,968 if they don’t.

10. Pearland, Texas

• Property Tax Percentage: 2.16%

Pearland stands out as the only non-East Coast city in the top 10 with a median home value of $364,000, and homeowners with a mortgage shell out a median of $7,847 in property taxes.

All statistics are derived from recent credible analyses.