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Property Taxes: Where Americans are Paying Most

How much consumers pay in property taxes —often referred to as real estate taxes— varies significantly and can be influenced based on the home’s worth and location. LendingTree looked at the median amount paid annually in each of the nation’s 50 largest metropolitan areas.

Experts suggest homeowners in some metros can expect to shell out thousands of dollars more a year in property taxes than homeowners in other parts of the country.

Metros with the highest property taxes:

No. 1: New York

  • Median property taxes paid — all homes: $8,602
  • Median property taxes paid — homes with a mortgage: $8,819
  • Median property taxes paid — homes without a mortgage: $8,180

No. 2: San Jose, California

  • Median property taxes paid — all homes: $7,471
  • Median property taxes paid — homes with a mortgage: $8,559
  • Median property taxes paid — homes without a mortgage: $4,838

No. 3: San Francisco

  • Median property taxes paid — all homes: $6,508
  • Median property taxes paid — homes with a mortgage: $7,267
  • Median property taxes paid — homes without a mortgage: $4,384

Metros with the lowest property taxes:

No. 1: Birmingham, Alabama

  • Median property taxes paid — all homes: $909
  • Median property taxes paid — homes with a mortgage: $976
  • Median property taxes paid — homes without a mortgage: $753

No. 2: New Orleans

  • Median property taxes paid — all homes: $1,345
  • Median property taxes paid — homes with a mortgage: $1,494
  • Median property taxes paid — homes without a mortgage: $1,101

No. 3: Louisville, Kentucky

  • Median property taxes paid — all homes: $1,563
  • Median property taxes paid — homes with a mortgage: $1,650
  • Median property taxes paid — homes without a mortgage: $1,413

Key findings include:

  • 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, Alabama, is the only metro where median property taxes are less than $1,000 a year. The median amount of property taxes paid by homeowners in Birmingham is only $909. For comparison, residents in the next two metros with the lowest median real estate taxes — New Orleans and Louisville, Kentucky. — owe $1,345 and $1,563 a year, respectively.
  • New York, San Jose, California, and San Francisco are the metros where homeowners pay the most in property taxes. Unsurprisingly, residents in these metros known for their expensive real estate shell out a lot of money in property taxes each year. 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. Salt Lake City and Seattle — the two metros where median property taxes are slightly higher for homes without a mortgage — illustrate there are exceptions.

To see the full report, including tax tips and methodology, click here.

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport, with more than six years of writing experience. She has served as Editor-in-Chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington. She has covered events such as the Byron Nelson, Pac-12 Conferences, the Women in Dallas Film Festival, to freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, she is an avid jazz lover and reader. She can be reached at [email protected]
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