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Think Rochester property taxes are high? You’re right: Study finds them highest in US
Property owners in the Greater Rochester metro area pay the highest "effective" tax rate in the country, according to a recent analysis. (File photo by Kevin Oklobzija)
Property owners in the Greater Rochester metro area pay the highest "effective" tax rate in the country, according to a recent analysis. (File photo by Kevin Oklobzija)
Think Rochester property taxes are high? You’re right: Study finds them highest in US
Listen to this articleProperty owners in the Greater Rochester area pay the highest “effective” tax rate in the country among metropolitan areas with at least one million residents, a recent analysis has found.
The annual property tax report by ATTOM, a real estate data analytics firm, shows an effective tax rate of 1.82 percent for the Rochester metro area, followed by Chicago (1.78), Buffalo (1.73), Cleveland (1.63) and Philadelphia (1.41).
ATTOM said it calculates rates by examining tax assessor data for more than 86 million single-family homes in 1,502 counties.
The average tax bill is calculated by dividing the total taxes levied by the number of homes in each area. “Estimated market values are based on ATTOM’s automated valuation model, and effective tax rates is determined by dividing the average tax bill by the average estimated home value,” the report says.
“The ATTOM report underscores a critical affordability challenge: even though home values in the Rochester area are relatively low, property taxes take up a larger share of those values — resulting in the highest effective tax rate among large metro areas in the country,” said Justin Wilcox, executive director of Upstate United, the nonpartisan business and taxpayer advocacy coalition.
Another New York city, Binghamton, had the highest tax rate among metro areas with at least 200,000 residents at 2.27.
“While Rochester tops the list, several other Upstate New York metro areas, including Buffalo and Binghamton, also rank among the highest, pointing to a broader statewide affordability issue,” Wilcox said.
Government leaders talk about efforts to improve affordability, yet tax burdens are significant for those who can afford to buy houses.
“In New York, where local governments rely heavily on property taxes to fund services, this drives up housing costs relative to income and can make homeownership less attainable, particularly in regions with higher poverty rates,” Wilcox said.
“It also highlights a structural issue in which communities with weaker tax bases face higher relative tax burdens. Ultimately, this raises serious questions about whether state policies are shifting costs onto local governments and, in turn, the residents who can least afford them.”
At the other end of the national scale, Honolulu had the lowest effective tax rate among large metro areas at 0.33, followed by Phoenix (0.39), Nashville (0.49), Salt Lake City (0.50) and Las Vegas (0.52).
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