Homebuyers looking to save on their property tax should consider living in Birmingham, Ala., which a new study revealed was the metro area with the lowest real estate taxes in the country.
Data from LendingTree showed that residents in Birmingham paid an average of $2,035 in real estate taxes. This was followed by Louisville, Ky., with an average of $2,733, and Salt Lake City, with an average of $2,765.
LendingTree’s study looked at the average amount of real estate taxes that were paid by homeowners in a given metro, as reflected on their tax returns. The study then ranked the nation's 50 largest metros to show where people paid the lowest taxes on their homes.
On the opposite end of the spectrum are the large urban areas of San Francisco ($8,493) San Jose, Calif. ($9,626), and New York City ($10,202).
The study also revealed that relatively few Americans itemize their tax returns because they either save more by taking the standard deduction or find taking it more convenient. People who pay high property taxes can sometimes save more by not taking the standard deduction and instead itemizing their tax returns, but only around seven in 10 federal tax returns filed don't contain any specific info on things like real estate taxes or mortgage interest paid.