SmartAsset Ranks U.S. Cities by Homeowners' Property Tax Burden

Property taxes remain a persistent financial obligation for U.S. homeowners even after mortgage payments end, varying significantly by jurisdiction. These taxes, which can range from 1% to 10% of homeowner income, fund local infrastructure and community amenities, influencing local lifestyle values. However, the benefits received from these taxes are not uniformly distributed among households, making property tax considerations critical in real estate decisions, especially for first-time buyers and those relocating. A recent analysis by SmartAsset evaluated 343 of the largest U.S. cities, ranking them based on the percentage of homeowner income allocated to annual property taxes. This ranking provides valuable insight into the varying tax burdens faced by homeowners across cities with populations exceeding 100,000. The study uses median annual real estate tax payments compared to median household income data from the U.S. Census Bureau's 1-Year American Community Survey for 2024. This approach highlights the relative financial impact of property taxes on homeowners, an important factor for financial planning in homeownership and relocation. While some regions offer preferential tax treatment to groups such as senior citizens and owner-occupants, the overall tax burden underscores the importance of integrating property tax assessments into broader market and financial analyses. These findings are particularly relevant for insurance professionals assessing homeowner risk and portfolio strategies, as property taxes can influence homeowner equity and affordability. The analysis by SmartAsset emphasizes the need for ongoing evaluation of property tax landscapes as part of comprehensive market intelligence. Understanding regional variations in tax burdens assists insurers, real estate professionals, and regulators in contextualizing homeowner financial obligations within local economic conditions.