The Best And Worst Cities For Property Taxes In 2016

Property Tax 2016

There are no certain things in life except for these two; death and tax.

Even so, people can somewhat control the latter. Owning a home anywhere in America, requires you to pay property taxes. Although a recent study shows that the tax rates vary by state and city.

This new research was conducted by the Lincoln Institute of Land Policy, a think tank company that is based in Cambridge, Mass.

It focuses on the property taxes in the major cities in all states of the America. With this, they learned that the people who pay the highest taxes are the residents in Bridgeport, Conn.

After calculating the main residences’ effective tax rate, or the property’s market value in percentage of tax bill, the Lincoln Institute learned that the Bridgeport homeowners of a on a median-value property pay 3.88%, significantly higher compared to the 0.30% in Honolulu, HI., which has the lowest rate out of all the 50 states.

Behind Bridgeport, Detroit (3.81% ) and Aurora, Ill (3.72%) came second and third. Following Honolulu, Cheyenne (0.65%) and Denver (0.66%) are on the lower section in effective tax rates.

Even though residents give importance to property taxes, these rates may not have a full scope of how cities deal with their taxpayers. For example, Bridgeport strongly depends on property taxes for income with an average of $1,891 per person, since they have no sales and income tax.

On the other hand, the people in Birmingham pay both sales and income tax together with property taxes, which is about $2,429 for each resident.

The study also reveals that in some of the cities, the total tax is not so high, despite having high property taxes.

This is caused by lower median home values. Detroit has a 3.81% effective tax rate, wherein the median home values are among the lowest, compared to New York City’s 1.13%, noted for its extremely high property rates.

Across the 53 cities, the average effective tax rate is assessed; Washington D.C. plus Chicago and New York City was 1.5% is considered the biggest city out of the 50 states.

The cities with above-average rates were Aurora, Ill, Bridgeport and Detroit. Those below the average were Washington D.C., Honolulu, Denver and Boston.

For the cities evaluated in the study, the average rate of effective property tax dropped a little, from 1.511% in the past year, as 31 cities have declined in rates while 20 experiencing increases.

Sioux Falls, S.D. had the most significant decrease while Phoenix got the largest increase.

The study illustrates another example; a change in revenue system, high level government cuts down its support in a state, or increases its health care expenses, may have contributed to the rise or decline in the property tax rates in the cities.

Below is The List:

Highest Property Tax Rates

1. Bridgeport, CT – Property Tax Rate: 3.88%

2. Detroit – Property Tax Rate: 3.81%

3. Aurora, IL – Property Tax Rate: 3.72%

4. Newark – Property Tax Rates: 3.05%

5. Milwaukee – Property Tax Rate: 2.68%

Lowest Property Tax Rates

49. Boston – Property Tax Rate: 0.67%

50. Birmingham, AL – Property Tax Rate: 0.66%

51. Denver – Property Tax Rate: 0.66%

52. Cheyenne, WY – Property Tax Rate: 0.65%

53. Honolulu – Property Tax Rate: 0.30%

Kristina Howard

Kristina Howard - Real Estate Writer at RateTake
Kristina has worked – as writer, editor or publisher – on numerous real estate websites. Her career took her form being a Real Estate Agent to an avid writer.
Kristina Howard

Written by Kristina Howard

Kristina Howard

Kristina has worked – as writer, editor or publisher – on numerous real estate websites. Her career took her form being a Real Estate Agent to an avid writer.