However, taxpayers’ burdens can vary substantially depending on geography. Certain states have put in place laws that limit how much the state or localities can charge in property taxes. One of the most notable examples is California’s Proposition 13, enacted in 1978. Prop 13 caps the property tax rate at 1% (in addition to any local voter-approved indebtedness) and limits when the value of properties can be reassessed for tax purposes. A number of other states have followed suit with similar legislation and ballot initiatives to limit property tax collection in various ways. Even within statewide limits, local governments could also choose to levy taxes at different rates, meaning that comparably valued properties in two localities or taxing districts could have widely different tax bills.
These overlapping state and local policies create a complicated mosaic of property tax regimes across the U.S. At the state level, the Northeast and Midwest tend to have the highest effective property tax rates, led by New Jersey at 2% and Illinois at 1.9%. In contrast, effective rates tend to be much lower in the South and Mountain West regions.
At the metropolitan level, those in Texas and New York headline the list of locations with the highest property taxes. Texas places four major metros in the top 15, while three New York metros are represented—including Rochester, which has the nation’s highest property taxes at a 2.4% effective rate.
The data used in this analysis is from the U.S. Census Bureau. 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 real estate taxes paid by the aggregate value of housing units in 2021. In the event of a tie, the location with the greater median property taxes paid for owner-occupied homes was ranked higher.
The analysis found that Georgia had an effective property tax rate of 0.8%…
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