ROCHESTER, N.Y. (WROC) — Rochester led all metro areas in the nation with the highest effective property tax rates in 2021, according to a new report from ATTOM.
The California-based real estate data solutions company reported Rochester’s effective property tax rate was 2.22% in 2021, and local residents paid an average of $5,061 in property taxes.
According to ATTOM, $328 billion in property taxes were leveied on single-family homes last year, up from $323 billion in 2020.
The report analyzed property tax data collected from county tax assessor offices with the estimated market value of single-family homes. The report found the effective tax rate was the average annual property tax as a percentage of the average estimated market value of homes.
Rochester led the list ahead of Rockford, Illinois (2.16%), Syracuse (2.16%), Binghamton (2.1%), and Trenton, New Jersey (2.07%).
ATTOM reports the average tax on single-family homes in the U.S. last year increased at the smallest pace in the past five years, up 1.8% from $3,719 in 2020 to $3,785 in 2021.
Aside from Rochester, the highest rates for metro areas with a population of at least 1 million people in 2021 were Hartford, Connecticut (1.98%), Chicago (1.84%), Philadelphia (1.6%), and Cleveland (1.56%).
Among the 220 metro areas with a population of at least 200,000 last year, 19 of the 20 highest effective tax rates were in the midwest and northeast while nine of the top ten were in New York, Illinois, or Connecticut.
“It’s hardly a surprise that property taxes increased in 2021, a year when home prices across the country rose by 16 percent,” says Rick Sharga, executive vice president of market intelligence at ATTOM. “In fact, the real surprise is that the tax increases weren’t higher, which suggests that tax assessments are lagging behind rising property values and will likely continue to go up in 2022.”
On the other end of the spectrum, metros with the lowest effective property tax rates last year were Honululu (0.25%), Daphne-Fairhope, Alabama (0.27%), Montgomery, Alabama (0.31%), Tuscaloosa, Alabama (0.35%), and Prescott, Arizona (0.35%).
The lowest among metro areas with at least 1 million residents were Phoenix (0.38%), Nashville (0.41%), Las Vegas (0.41%), Salt Lake City (0.42%), and Denver (0.48%).
“Prospective homeowners often fail to include property taxes when considering the cost of homeownership,” Sharga said. “But, especially in some of the higher-priced markets across the country, property taxes can add thousands of dollars to annual ownership costs, and possibly be the difference between someone being able to afford a home or not. It’s critically important for consumers to factor in taxes, insurance and maintenance when determining whether they’re ready for the financial responsibility of home ownership.”