H
igh property taxes in large cities like New York City, Philadelphia, and Chicago are driving retirees out of these areas and fueling an internal migration to places with lower tax burdens. According to a new analysis by John Burns Real Estate Consulting, the dark red areas on their map show cities and counties where property taxes exceed 2% of a home's value.

    Property taxes vary widely depending on location, with much of New York state, neighboring New Jersey, and Philadelphia having median rates between 1.75% and 2%. In contrast, other Northeastern states like Massachusetts, Connecticut, New Hampshire, and Vermont have lower property tax rates, mostly falling within the 1.25% to 1.5% range.

    In the Midwest, Illinois stands out for its high property tax rate, with much of the state landing in the 1.75% to 2% zone. Nearby states like Wisconsin, Iowa, Kansas, and Nebraska also have elevated property taxes, mostly within the 1.25% to 1.5% range.

    On the other hand, a group of Western and Southern states have low property tax rates, including Nevada, Arizona, Utah, Colorado, Louisiana, Alabama, South Carolina, Tennessee, and West Virginia, where rates are under 0.5%.

    Retiree migration trends are driven by a combination of factors, including affordability and access to warm weather. According to Chris Porter, senior vice president of research at John Burns Real Estate Consulting, the younger generation often drives the retiree migration, with young professionals relocating to more affordable states and their parents following suit.

    Florida remains the top retiree destination in the US, despite its relatively high property tax rate. Texas is a close second, followed by Arizona, North Carolina, Pennsylvania, and California. Looking ahead, Porter predicts that North and South Carolina will emerge as more attractive destinations for retirees, along with states like West Virginia, which offers a winning combination of affordability and low property taxes.

    Census data mirrors these predictions, showing significant growth in the 65-plus age group in Southern cities like Myrtle Beach, SC, and Raleigh, NC. Despite having higher property taxes overall, Texas continues to attract large numbers of retirees, with four of its major cities ranking in the top 10 for population growth among older Americans.