The 11 worst cities for homeowners if the GOP tax plan passes

  • Republicans have reached a preliminary agreement on their tax bill, meaning the US tax code could soon be overhauled.
  • The tax bill would limit the property tax deduction to $10,000 a year; currently, homeowners can deduct their property tax in full.
  • We compiled a list of the places where homeowners and prospective homebuyers are likely to be hit hardest if the tax bill is enacted.

House and Senate Republicans on Wednesday came to a preliminary agreement on their final tax bill.

The bill could affect current and future homeowners in a few different ways, including by capping the deduction for state and local property taxes at $10,000. Under the current tax system, there is no cap on the amount of property taxes a homeowner can deduct.

As part of its latest housing report, Trulia identified the top metro areas in the US with the greatest share of homeowners who pay $10,000 or more in property taxes annually. It's these places where homeowners and prospective homebuyers are likely to be hit hardest if the tax bill is enacted. 

New Yorkers would be hit especially hard. In each of three New York area metros — New York City, Newark, Long Island — more than one out of every five households pay at least $10,000 annually in property taxes.

For each metro, Trulia also calculated the effective property tax rate paid by homeowners in 2016, according to data from the American Community Survey. Business Insider used that rate to estimate the minimum home value at which the annual property tax bill would be at least $10,000.

Here are the 11 worst places to buy a home if the GOP tax bill passes — with the largest share of homeowners who pay more than $10,000 in property taxes.  

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The worst cities to own a home if GOP tax plan passes
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The worst cities to own a home if GOP tax plan passes

11. Houston, Texas

Effective property tax rate for 2016: 1.7%

Household property tax bills above $10,000: 10.2%

Home value at which property tax bill exceeds $10,000:$583,371 

Photo credit: Getty

10. Cambridge, Massachusetts

Effective property tax rate for 2016: 1.2%

Household property tax bills above $10,000: 10.8%

Home value at which property tax bill exceeds $10,000:$866,626 

Photo credit: Getty

9. Austin, Texas

Effective property tax rate for 2016: 1.6%

Household property tax bills above $10,000: 11.4%

Home value at which property tax bill exceeds $10,000:$619,641 

Photo credit: Getty

8. Chicago, Illinois

Effective property tax rate for 2016: 1.9%

Household property tax bills above $10,000: 11.8%

Home value at which property tax bill exceeds $10,000:$519,453 

Photo credit: Getty

7. Boston, Massachusetts

Effective property tax rate for 2016: 1%

Household property tax bills above $10,000: 12.4%

Home value at which property tax bill exceeds $10,000:$988,190

Photo credit: Getty

6. San Jose, California

Effective property tax rate for 2016: 0.6%

Household property tax bills above $10,000: 18%

Home value at which property tax bill exceeds $10,000:$1,561,628 

Photo credit: Alamy

5. San Francisco, California

Effective property tax rate for 2016: 0.6%

Household property tax bills above $10,000: 19.9%

Home value at which property tax bill exceeds $10,000:$1,762,341 

Photo credit: Alamy

4. Fairfield County, Connecticut

Effective property tax rate for 2016: 0.6%

Household property tax bills above $10,000: 20.6%

Home value at which property tax bill exceeds $10,000:$783,275 

Photo credit: Getty

3. New York, New York

Effective property tax rate for 2016: 1.2%

Household property tax bills above $10,000: 22.7%

Home value at which property tax bill exceeds $10,000:$848,752 

Photo credit: Getty

2. Newark, New Jersey

Effective property tax rate for 2016: 2.1%

Household property tax bills above $10,000: 33.7%

Home value at which property tax bill exceeds $10,000:$468,957 

Photo credit: Getty

1. Long Island, New York

Effective property tax rate for 2016:

Household property tax bills above $10,000: 46.5%

Home value at which property tax bill exceeds $10,000:$522,432 

Photo credit: Shutterstock

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More from Business Insider:  
This is how much $100 is actually worth in every state 
Here's what Trump's tax plan means for people making between $300,000 and $10 million a year 
5 last-minute tax moves to make now before Trump's tax plan goes into effect 

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