Published by REALTOR.com | March 7, 2025
Parts of the U.S. with low to moderate property tax rates have been seeing an influx of retirees who are leaving areas with high tax rates.
Sky-high property taxes in large metros like New York City, Philadelphia, and Chicago are driving retirees out and fueling an internal migration to places where owning a home won’t land you in the poorhouse, a new analysis has found.
John Burns Research and Consulting has shared a map on LinkedIn showing which U.S. regions have the highest and lowest median property tax rates, based on the most recently available data from the U.S. Census Bureau’s American Community Survey.
The dark red areas on the map show cities and counties with property taxes that amount to over 2% of a home’s value. Areas colored light beige on the map display sectors where property taxes account for less than 0.5% of the value, according to John Burns data scientist Ian Kennedy.
“Property taxes are a huge expense, especially for retirees,” commented John Burns, the founder and CEO of the consulting firm. “We see a lot of retirement outmigration from the states in dark red in this map.”
Property taxes are based on the value of a home and the land it sits on.
The tax rate amount varies by town, city, school district, county, and state. It is raised to fund local governments, public schools, road maintenance, and other municipal services.
Based on the data from the John Burns graphic, much of New York state, along with large swaths of neighboring New Jersey and Philadelphia, had median property taxes ranging between 1.75% and 2%, or higher.
Other Northeastern states fared better, with property taxes in Massachusetts, Connecticut, New Hampshire, and Vermont mostly falling within the 1.25% to 1.5% range.
In the Midwest, Illinois stood out for having the highest property tax rate in the region, with much of the state landing within the 1.75% to 2% zone, and some sections veering into the 2%-plus territory.
Nearby states of Wisconsin, Iowa, Kansas, and Nebraska also had elevated property taxes, mostly within the 1.25% to 1.5% range, with a few enclaves going above that benchmark.
In the South, Texas has earned the dubious distinction of having the highest property taxes in the area, running the gamut from 1% all the way to 2% in parts of Houston and San Antonio.
