Editor's Note: This story originally appeared on Construction Coverage.
America’s housing market has entered a period of recalibration after the frenzy of recent years. Home prices are still hovering near record highs, though their growth has slowed significantly, now trailing general inflation on average rather than outpacing it.
While existing homeowners have largely benefited from high prices in the form of equity gains, they also face their own set of challenges. For one, many are effectively “locked in” to their homes, having secured low-interest mortgages before rates began climbing.
Another factor is property taxes. Typically calculated as a percentage of a home’s assessed value, property taxes remain a growing burden even as the market cools. Because tax assessments often lag behind real-time market data, many homeowners are still seeing their bills climb as local governments play catch-up to the massive value spikes of the early 2020s.
Consequently, even in a slower market, property tax bills in many areas continue to rise, squeezing homeowners regardless of whether they have a fixed-rate mortgage or own their property outright.
Property tax burdens in the United States vary significantly depending on local tax policies.
To determine the locations with the highest and lowest property taxes, researchers at Construction Coverage analyzed data from the U.S. Census Bureau. Learn more about the methodology at the end.
Here are the cities with the highest property tax rates, followed by the cities with the lowest property tax rates.
15. Paterson, NJ
- Effective property tax rate for owner-occupied homes: 2.044%
- Median property taxes paid for owner-occupied homes: $9,021
- Median owner-occupied home value: $387,400
- Median owner-occupied household income: $94,004
14. Aurora, IL
- Effective property tax rate for owner-occupied homes: 2.050%
- Median property taxes paid for owner-occupied homes: $6,042
- Median owner-occupied home value: $289,100
- Median owner-occupied household income: $107,846
13. Mount Vernon, NY
- Effective property tax rate for owner-occupied homes: 2.061%
- Median property taxes paid for owner-occupied homes: $9,851
- Median owner-occupied home value: $513,300
- Median owner-occupied household income: $113,849
12. Trenton, NJ
- Effective property tax rate for owner-occupied homes: 2.085%
- Median property taxes paid for owner-occupied homes: $4,948
- Median owner-occupied home value: $232,100
- Median owner-occupied household income: $81,346
11. Clifton, NJ
- Effective property tax rate for owner-occupied homes: 2.094%
- Median property taxes paid for owner-occupied homes: $10,109
- Median owner-occupied home value: $483,800
- Median owner-occupied household income: $108,942
10. Rockford, IL
- Effective property tax rate for owner-occupied homes: 2.150%
- Median property taxes paid for owner-occupied homes: $3,378
- Median owner-occupied home value: $153,500
- Median owner-occupied household income: $71,356
9. Passaic, NJ
- Effective property tax rate for owner-occupied homes: 2.152%
- Median property taxes paid for owner-occupied homes: $9,636
- Median owner-occupied home value: $433,500
- Median owner-occupied household income: $87,411
8. New Britain, CT
- Effective property tax rate for owner-occupied homes: 2.158%
- Median property taxes paid for owner-occupied homes: $6,069
- Median owner-occupied home value: $268,200
- Median owner-occupied household income: $83,556
7. Bayonne, NJ
- Effective property tax rate for owner-occupied homes: 2.165%
- Median property taxes paid for owner-occupied homes: $10,632
- Median owner-occupied home value: $491,200
- Median owner-occupied household income: $134,859
6. Cicero, IL
- Effective property tax rate for owner-occupied homes: 2.174%
- Median property taxes paid for owner-occupied homes: $5,549
- Median owner-occupied home value: $261,000
- Median owner-occupied household income: $90,188
5. Schenectady, NY
- Effective property tax rate for owner-occupied homes: 2.226%
- Median property taxes paid for owner-occupied homes: $5,031
- Median owner-occupied home value: $222,100
- Median owner-occupied household income: $86,152
4. Waterbury, CT
- Effective property tax rate for owner-occupied homes: 2.257%
- Median property taxes paid for owner-occupied homes: $5,130
- Median owner-occupied home value: $248,500
- Median owner-occupied household income: $76,815
3. Waukegan, IL
- Effective property tax rate for owner-occupied homes: 2.345%
- Median property taxes paid for owner-occupied homes: $4,717
- Median owner-occupied home value: $219,700
- Median owner-occupied household income: $89,405
2. Peoria, IL
- Effective property tax rate for owner-occupied homes: 2.358%
- Median property taxes paid for owner-occupied homes: $4,263
- Median owner-occupied home value: $177,900
- Median owner-occupied household income: $89,867
1. East Orange, NJ
- Effective property tax rate for owner-occupied homes: 2.453%
- Median property taxes paid for owner-occupied homes: $9,962
- Median owner-occupied home value: $372,600
- Median owner-occupied household income: $122,051
5 Cities With the Lowest Property Taxes
Following are the American cities with the smallest property tax burdens.
5. Flagstaff, AZ
- Effective property tax rate for owner-occupied homes: 0.347%
- Median property taxes paid for owner-occupied homes: $1,983
- Median owner-occupied home value: $602,300
- Median owner-occupied household income: $110,215
4. Tempe, AZ
- Effective property tax rate for owner-occupied homes: 0.341%
- Median property taxes paid for owner-occupied homes: $1,893
- Median owner-occupied home value: $488,600
- Median owner-occupied household income: $117,606
3. San Tan Valley, AZ
- Effective property tax rate for owner-occupied homes: 0.337%
- Median property taxes paid for owner-occupied homes: $1,452
- Median owner-occupied home value: $430,400
- Median owner-occupied household income: $101,226
2. Scottsdale, AZ
- Effective property tax rate for owner-occupied homes: 0.296%
- Median property taxes paid for owner-occupied homes: $2,790
- Median owner-occupied home value: $856,700
- Median owner-occupied household income: $130,101
1. Mount Pleasant, SC
- Effective property tax rate for owner-occupied homes: 0.248%
- Median property taxes paid for owner-occupied homes: $2,311
- Median owner-occupied home value: $895,700
- Median owner-occupied household income: $155,624
Methodology
The data used in this analysis is from the U.S. Census Bureau’s 2024 American Community Survey.
To determine the locations with the highest property taxes, researchers at Construction Coverage calculated the effective property tax rate for owner-occupied homes by dividing the aggregate annual real estate taxes paid by the aggregate value of housing units.
In the event of a tie, the location with the greater median property taxes paid for owner-occupied homes was ranked higher.
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