In my review of the single-family sales data for 2019 compared to 2018, I was interested on the impact of differing property tax rates on the change in sales price compared to 2018 among neighborhoods in Hamilton County. Here's what was found:
- There is a clear relationship between tax rate and the change in the average sales price for the neighborhood in the chart above
- Sales prices were flat or even declined for 2019 for those neighborhoods with the highest property tax rates.
- Property taxes can vary from as low as about 1.5% of total value to 3.5% of total value across the Cincinnati area
- For an average priced home of $225,000, the property taxes could range from $3,375 per year to $7,875 per year depending upon the tax district.
It is not always appreciated how much the property tax rate impacts a buyers purchasing power when comparing home prices from different tax districts. Are you surprised? How much did property taxes or local municipality income taxes factor into your home buying decision?