Buying a house is a big investment—but it doesn’t stop there. Real estate taxes are a major ongoing cost for homeowners, and in some cities, these taxes can take a serious toll on your finances.
Whether you’re a first-time homebuyer or a retiree, the property tax rate in your area can greatly affect your cost of living.
In a recent study, SmartAsset compared real estate taxes paid vs. median home values in 330 U.S. cities. The result? A list of places where homeowners feel the heaviest property tax burden—and Illinois dominates the list.
How Is Property Tax Burden Measured?
SmartAsset compared:
- Median home value in each city
- Median annual property tax paid
- To get the effective tax rate (% of home value paid as tax)
Let’s look at the top 10 cities where property taxes are highest compared to home value.
Top 10 Cities With the Highest Real Estate Tax Burden
1. Rockford, Illinois
- Median home value: $107,900
- Annual property tax: $3,283
- Effective tax rate: 3.04%
Rockford may offer affordable housing, but it tops the list with the highest tax burden in the U.S.
2. Waterbury, Connecticut
- Median home value: $193,300
- Annual tax: $5,324
- Effective tax rate: 2.75%
Waterbury homeowners pay a steep tax, making this scenic city one of the costliest for property owners.
3. Bridgeport, Connecticut
- Median home value: $229,900
- Annual tax: $6,130
- Effective tax rate: 2.67%
Despite its charm, Bridgeport ranks third with a high property tax burden.
4. Aurora, Illinois
- Median home value: $235,800
- Annual tax: $6,128
- Effective tax rate: 2.60%
Just outside Chicago, Aurora’s taxes take a toll despite being more affordable than the big city.
5. Elgin, Illinoi
- Median home value: $244,900
- Annual tax: $6,194
- Effective tax rate: 2.53%
Elgin homeowners pay the second-highest average tax amount in the top 10 list.
6. Rochester, New York
- Median home value: $112,000
- Annual tax: $2,806
- Effective tax rate: 2.51%
Homes are cheaper in Rochester, but the percentage paid in taxes is high.
7. Syracuse, New York
- Median home value: $125,600
- Annual tax: $3,026
- Effective tax rate: 2.41%
College town charm comes at a price, with Syracuse residents paying some of the highest tax percentages.
8. Peoria, Illinois
- Median home value: $143,500
- Annual tax: $3,402
- Effective tax rate: 2.37%
Peoria continues Illinois’ streak with high taxes relative to home value.
9. Lansing, Michigan
- Median home value: $112,100
- Annual tax: $2,597
- Effective tax rate: 2.32%
Even in the Michigan capital, real estate taxes are steep for the average homeowner.
10. Pearland, Texas
- Median home value: $313,200
- Annual tax: $7,247
- Effective tax rate: 2.31%
Though homes are costlier here, Pearland’s tax percentage is still high, making it tough on buyers.
High Property Taxes Hurt More in Certain Cities
Real estate taxes are something every homeowner must pay—but where you live makes a huge difference in how much you pay each year. Cities like Rockford, Aurora, and Elgin in Illinois, along with parts of Connecticut and New York, have some of the highest effective property tax rates in the U.S.
So if you’re planning to buy a home, remember that lower home prices don’t always mean lower costs in the long run. Always check the effective property tax rate—it might save you a lot of money!
