Buying a home is a major life goal for many, but it’s also a big financial commitment — not just at the time of purchase, but year after year. One of the ongoing costs homeowners face is property tax, which can significantly affect monthly budgets, especially in some cities more than others.
SmartAsset recently studied real estate taxes in 330 U.S. cities by comparing the taxes paid to the median home values, identifying the 10 cities where homeowners pay the highest property tax rates.
Let’s take a closer look at which cities top the list — and why owning a home there might be harder on your wallet.
Why Property Taxes Matter
Property taxes help pay for important local services like schools, roads, police, and parks. But for homeowners, these taxes can be a major expense, especially in areas where tax rates are high relative to home prices.
SmartAsset’s study shows how tax rates affect homeowners across the country and highlights where real estate taxes make up the largest portion of home values.
1. Rockford, Illinois
- Median Home Value: $107,900
- Median Annual Property Tax: $3,283
- Effective Tax Rate: 3.04%
Despite its low home prices, Rockford has the highest property tax rate on this list. Homeowners end up paying over 3% of their home’s value in taxes each year.
2. Waterbury, Connecticut
- Median Home Value: $193,300
- Annual Tax: $5,324
- Effective Tax Rate: 2.75%
Known for its natural beauty and access to larger cities, Waterbury has one of the highest tax burdens in the U.S. Its property tax rate is much higher than the national average.
3. Bridgeport, Connecticut
- Median Home Value: $229,900
- Annual Tax: $6,130
- Effective Tax Rate: 2.67%
Bridgeport residents pay more than $6,000 in annual taxes, making it one of the most expensive places to own a home in terms of tax burden.
4. Aurora, Illinois
- Median Home Value: $235,800
- Annual Tax: $6,128
- Effective Tax Rate: 2.60%
Aurora may offer more affordable housing than nearby Chicago, but property taxes are still high. Homeowners pay over 2.5% of home value in taxes each year.
5. Elgin, Illinois
- Median Home Value: $244,900
- Annual Tax: $6,194
- Effective Tax Rate: 2.53%
Elgin homeowners have some of the highest total tax payments, even though the city isn’t among the most expensive. High taxes add a significant burden.
6. Rochester, New York
- Median Home Value: $112,000
- Annual Tax: $2,806
- Effective Tax Rate: 2.51%
While homes in Rochester are affordable, the property tax rate is one of the highest in New York, affecting long-term affordability.
7. Syracuse, New York
- Median Home Value: $125,600
- Annual Tax: $3,026
- Effective Tax Rate: 2.41%
Syracuse offers city life with a college-town feel, but high property taxes mean homeowners must be prepared for ongoing costs.
8. Peoria, Illinois
- Median Home Value: $143,500
- Annual Tax: $3,402
- Effective Tax Rate: 2.37%
In Peoria, homeowners enjoy a suburban lifestyle, but taxes are well above the national average, reducing overall affordability.
9. Lansing, Michigan
- Median Home Value: $112,100
- Annual Tax: $2,597
- Effective Tax Rate: 2.32%
As Michigan’s capital, Lansing offers many amenities. But real estate taxes take up a large percentage of property value.
10. Pearland, Texas
- Median Home Value: $313,200
- Annual Tax: $7,247
- Effective Tax Rate: 2.31%
Pearland has the highest home values on this list. While home prices are higher, taxes are also high, leaving many homeowners with big bills.
Homeownership comes with more than just a mortgage. Property taxes can be a long-term burden that affects your monthly budget and your decision to buy a home.
Cities like Rockford, Waterbury, and Bridgeport may have affordable homes, but their high effective tax rates can surprise buyers. Whether you’re a first-time buyer or planning retirement, it’s essential to consider property taxes before purchasing a home.
Understanding the true cost of homeownership — beyond just the price tag — helps you plan better and avoid financial surprises later.
