Even after paying off a mortgage, homeowners still have to deal with ongoing property taxes, which they typically pay between 1% and 10% of their income.
If you are considering purchasing a home in the near future, there are some cities you might want to avoid—specifically, Aurora and Elgin in Illinois. According to a recent report from the financial company SmartAsset, these two cities have some of the highest property tax burdens in the nation relative to typical incomes.
A recent report found that a typical Aurora resident spends 5.83% of their income on property taxes, while a typical Elgin resident spends slightly less, at 5.46%.
According to SmartAsset, the median household income for mortgage holders in Aurora is $109,738. The median monthly housing costs in Aurora are $1,996, and the median annual property tax is $6,399.
In contrast, Elgin has a higher median household income for mortgage holders, at $120,773. The median monthly housing costs there are $2,020, and the median annual property taxes amount to $6,595, according to SmartAsset.
Both Aurora and Elgin have significantly higher median household incomes for mortgage holders than the statewide median household income, which stands at $81,702.
Top 15 cities with the highest tax burdens
- Paterson, New Jersey
- Bridgeport, Connecticut
- Waterbury, Connecticut
- Newark, New Jersey
- Jersey City, New Jersey
- Richmond, California
- Aurora, Illinois
- Allentown, Pennsylvania
- New Haven, Connecticut
- Stamford, Connecticut
- Hartford, Connecticut
- Elgin, Illinois
- Oakland, California
- Edinburg, Texas
- Georgetown, Texas