Senior Spotlight: The Push & Pull of Property Taxes
Here’s 5 things to know about how property tax rates are impacting retirees.
Did you know that nationwide, property taxes are 30% higher than they were during the pandemic? In a recent article featuring data from both Redfin & John Burns Research & Consulting (JBREC), it was revealed that property taxes have surged in in nearly every U.S. metropolitan area between 2019 and 2024. Rising home prices which provide the basis of the calculation coupled with the tax rate percentage have also created rising costs.
For retirees on a fixed income, high property tax rates can be a deal breaker when it comes to where to live. Here are 5 important data points with regards to property tax rates & retirement.
#1: Homeowners pay the highest property tax rates on the East Coast, particularly in New York, New Jersey, and Pennsylvania (property tax rates are between 1.75-2% of a home’s value).
#2: The Midwest ranked 2nd for the nation’s highest property tax rates, with Illinois also having a property tax rates of 1.75-2%.
#3: The West and South generally have the nation’s lowest property tax rates, typically 1% or less. The exception is Texas who has property tax rates of 1-1.5%.
#4: In corroborating property tax rates with migration trends of those aged 65 and older, reports found that states with lower property taxes were attracting the highest number of out-of-state newcomers. Nevada, Delaware and Arizona have low property tax rates and welcomed the most out-of-state newcomers aged 65+ in 2023.
#5: While California has a low property tax rate, the high home prices tend to motivate out-of-state moves. 36% of Nevada’s residents from out-of-state came from California. This follows the pattern that when people move for lower property taxes or home prices, they generally make a close move within the same region.
We encourage you to view the map of color-coded property tax rates from John Burns Research & Consulting (JBREC) here.
We hope you found this Senior Spotlight interesting & informative! If you ever consider an out-of-state move in retirement or otherwise, please be sure to understand what the property taxes would be in your new area and how much room there is for them to rise!
Cheers,
Bobbi
Bobbi Decker
DRE#00607999
Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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