Paying off a mortgage is an important milestone, but the property tax bill does not disappear. For retirees living on fixed incomes, it can become the largest housing expense left. To identify where the burden is steepest, FinanceBuzz compared median property tax bills with median home values in more than 600 U.S. cities using city-level Census data. Your own bill may differ depending on your assessment and any exemptions you qualify for.
Editor's note: Tax and home value figures are drawn from U.S. Census Bureau American Community Survey data used in FinanceBuzz's city study.
East Orange, New Jersey
- Effective property tax rate: 2.67%
- Median annual property tax bill: $9,962
- Median home value: $372,600
East Orange has the highest effective property tax rate in the analysis. A typical homeowner pays about $2,674 a year for every $100,000 of home value. Although the median home is only modestly above the national median, the typical tax bill is close to $10,000.
Market values are higher now as well. Zillow estimates average home value at roughly $474,800, which would put the annual tax bill at about $12,700 if the same rate applies. Retirees may be able to ease the burden through New Jersey’s ANCHOR, Senior Freeze, and Stay NJ programs, all accessed through a single state application.
Paterson, New Jersey
- Effective property tax rate: 2.58% or higher
- Median annual property tax bill: $10,000 or more
- Median home value: $387,400
The Census Bureau caps reported tax bills at $10,000, and Paterson’s median bill reaches that ceiling. As a result, the true median bill and effective rate are likely even higher than shown. Even at this floor, homeowners pay at least $2,582 a year per $100,000 of home value.
That is a heavy load in a city where per capita mean income is about $24,600, far below the national average of roughly $45,300. Stay NJ, which is aimed at homeowners age 65 and older, reimburses part of the property tax bill. State guidance says the combined value of all relief programs cannot exceed the taxes actually paid on a principal residence.
Peoria, Illinois
- Effective property tax rate: 2.40%
- Median annual property tax bill: $4,263
- Median home value: $177,900
Peoria shows how a high tax rate can hurt even when homes are relatively inexpensive. The median home value is less than half the national median, yet owners still pay about $2,396 a year for every $100,000 of value. That works out to a median bill of $4,263, which can be difficult on a fixed income.
Illinois offers several exemptions that may help. Outside the Chicago area, the general homestead exemption can reduce a home’s equalized assessed value by up to $6,000, and the Senior Citizens Homestead Exemption can reduce it by up to another $5,000. Seniors with household income of $75,000 or less for tax year 2026 may also qualify for the Low-Income Senior Citizens Assessment Freeze.
Bolingbrook, Illinois
- Effective property tax rate: 2.33%
- Median annual property tax bill: $7,780
- Median home value: $334,000
Bolingbrook, a village in the Chicago area, is located mostly in Will County. Its median tax bill of $7,780 is nearly twice Peoria’s. Homeowners pay roughly $2,329 a year per $100,000 of value, so moving to a somewhat larger home can noticeably raise the annual bill.
Because Will County borders Cook County, the available exemptions are larger than those in downstate Illinois. The general homestead exemption can reach $8,000 of equalized assessed value, and the senior exemption can also reach $8,000. Illinois also offers a Senior Citizens Real Estate Tax Deferral Program, which functions like a loan against home equity and is repaid when the home is sold.
Schenectady, New York
- Effective property tax rate: 2.27%
- Median annual property tax bill: $5,031
- Median home value: $222,100
Schenectady, in the Capital Region near Albany, combines moderate home prices with steep property taxes. The median owner pays about $2,265 a year for each $100,000 of value. Zillow’s average home value is much higher than the Census median, suggesting a recent buyer could face a bill closer to $7,200 if the effective rate stays the same.
New York’s main state program for older homeowners is Enhanced STAR, which lowers school taxes. For 2026 benefits, at least one resident owner must be 65 or older by the end of the year, and the combined income of resident owners and their spouses must be $110,750 or less.
New Britain, Connecticut
- Effective property tax rate: 2.26%
- Median annual property tax bill: $6,069
- Median home value: $268,200
New Britain, a small city southwest of Hartford, has a median home value well below the national median. Even so, its median tax bill of $6,069 is among the highest in this ranking outside New Jersey and the Chicago suburbs. That equals roughly $2,263 a year per $100,000 of value.
For older homeowners, Connecticut’s Homeowners’ Elderly/Disabled Circuit Breaker Tax Relief Program offers a credit of up to $1,250 for married couples and $1,000 for single filers, depending on income. Applications are filed through the local assessor’s office during the annual filing window, and the credit is applied directly to the property tax bill.
Cheektowaga, New York
- Effective property tax rate: 2.21%
- Median annual property tax bill: $4,852
- Median home value: $219,500
Cheektowaga, a Buffalo suburb in Erie County, has the largest share of older residents in the group. About 19% of residents are 65 or older, and roughly 25.5% of households receive retirement income. That makes its median tax bill of $4,852 especially relevant for retirees planning to remain in place.
Homes here are moderately priced, but the 2.21% effective rate means owners pay about $2,210 a year per $100,000 of value. Enhanced STAR can reduce the school portion of the bill for qualifying seniors, and local assessors may offer additional senior exemptions.
Lansing, Michigan
- Effective property tax rate: 2.07%
- Median annual property tax bill: $2,960
- Median home value: $142,800
Michigan’s capital has the lowest median tax bill in the top 10 at $2,960, largely because home values are low, with a median of just $142,800. Even so, the tax rate is still steep at about $2,073 a year per $100,000 of value, so the bill can rise quickly as prices increase.
Michigan’s Homestead Property Tax Credit, claimed on the state income tax return, can help qualifying homeowners and renters cover part of what they pay. The state says the credit can be filed up to four years after the year it first could have been claimed, which may help older residents who missed it earlier.
Waterbury, Connecticut
- Effective property tax rate: 2.06%
- Median annual property tax bill: $5,130
- Median home value: $248,500
Waterbury, a former brass manufacturing center in western Connecticut, is the second city in the state to appear on the list. The median homeowner pays $5,130 a year, or about $2,064 per $100,000 of home value. Zillow’s average home value suggests a typical more recent purchase could carry a bill of about $5,700.
Waterbury’s median rent is slightly below New Britain’s, which can make renting a practical alternative to buying. Homeowners age 65 and older may qualify for Connecticut’s circuit breaker credit, and some towns add their own local senior tax relief on top of it.
Racine, Wisconsin
- Effective property tax rate: 2.01%
- Median annual property tax bill: $3,471
- Median home value: $173,100
Racine, on Lake Michigan between Milwaukee and Chicago, rounds out the list with an effective rate just above 2%. Homeowners pay about $2,005 a year per $100,000 of value, producing a median bill of $3,471. Around 26.1% of households here have retirement income, one of the higher shares in the top 10.
Wisconsin’s lottery and gaming credit lowers property tax bills on owner-occupied primary homes. The state estimated the average credit at $213 on December tax bills. If the credit is missing from your bill, you can apply to your municipal treasurer by the end of January.
Bottom line
High property tax burdens are concentrated in the Northeast and Midwest, especially in New Jersey, Illinois, New York, and Connecticut. A lower-priced home does not necessarily mean a lighter tax bill. In Peoria, Lansing, and Racine, median home values are well below the national median, yet owners still pay more than $2,000 a year for every $100,000 of value.
Since your bill is tied to assessed value, it is worth reviewing that assessment each year. If it appears too high compared with similar nearby homes, most local assessors provide an appeals process, and many senior exemptions or freezes require an application. Before buying in any of these places, review the property’s actual tax bill and find out which exemptions may apply to you.
This article is for informational purposes only and should not be considered investment advice.
More from Digilifetrends
How to Choose a Dream Home Without Sacrificing Financial Security
Finding a house you love is only part of the equation. Making sure it remains affordable for years to come is just as important. A property in an appealing neighborhood may look…
5 min read · Published 2026-11-03Why Some Owners With Low-Rate Mortgages Are Choosing to Rent Instead of Sell
Some homeowners are increasingly treating a move and a sale as separate choices. A new job may take them to another city, a growing family may need more space, or aging parents…
8 min read · Published 2026-11-02A Safer First Step Than Selling Your Home Before Retirement
Selling a house and relocating after retirement is a major life choice. If the destination is unfamiliar, deciding can be even harder.
3 min read · Published 2026-11-02