What US City has the Highest Taxes?

Bridgeport, Connecticut, ranks highest for a family earning $75,000 in the latest available nationwide city household tax comparison from Washington, DC’s Office of Revenue Analysis. But the answer changes with income, housing and the type of tax being measured.

A homeowner, a renter and a business owner can face very different bills in the same city. Comparing sales tax alone will not tell you which place takes the largest share of your household income.

Here is what the newer figures show, how current rates differ, and what to check before deciding that a city is expensive—or affordable—for your circumstances.

Which US Cities Have the Highest Overall Tax Burdens?

The Office of Revenue Analysis report issued in October 2026 models 2023 taxes. It compares the largest city in each state plus Washington, DC, using a hypothetical family of three and income, property, sales and automobile taxes. Federal taxes are excluded.

For a household earning $75,000, Table 1c gives the following results:

Source: Table 1c, printed page 18. These are modeled household burdens, not average bills for every resident or a ranking of every US municipality.

Why “Highest Taxes” Can Mean Different Things

Before using any ranking, ask what it actually measures. Four common comparisons answer different questions:

• Total household tax burden: How much a particular household pays across several taxes.
• Income tax rate: The rate applied to taxable earnings or other taxable income.
• Effective property tax rate: A property’s tax bill divided by its market value.
• Combined sales tax rate: The state, local and applicable district taxes charged on a taxable purchase.

These percentages should not simply be added together. Income tax applies to income, property tax to property, and sales tax to taxable spending. Adding their headline rates produces a number with no useful household meaning.

Similarly, a top marginal income tax rate is not the percentage charged on every dollar someone earns. Brackets, deductions and credits affect the final bill.

Which Cities Have High Property Taxes?

The Lincoln Institute of Land Policy and Minnesota Center for Fiscal Excellence study, published in April 2026, compares property taxes paid in 2025. It covers homesteads, apartments, commercial and industrial properties.

In its group of 53 cities used for the largest-city comparison, the average effective rate on a median-valued homestead was 1.213%. Detroit, Aurora in Illinois, and Portland in Oregon had rates at least twice that average, according to the study announcement.

Ownership history matters, too. The study’s Miami example puts the tax on a newly purchased median-valued home at $10,024, compared with $3,166 for an equally valued home bought in 2012. Assessment limits help explain the difference.

The lesson for buyers is practical: request an estimate reflecting your purchase, rather than assuming that the seller’s bill will become yours.

Compare Effective Rates, Not Just Published Rates

Two jurisdictions can assess homes differently. One may tax a fraction of market value; another may offer substantial exemptions. That makes a direct comparison of statutory rates misleading.

For an illustration, a $6,000 annual bill on a home worth $400,000 equals a 1.5% effective property tax rate. This calculation is an example, not a reported city average.

Check the property’s taxable assessment, exemptions, school levies and reassessment rules. Those details are more useful for your budget than a statewide average.

Which Cities Have High Sales Taxes in 2026?

Current sales tax schedules show why a city’s reputation can lag behind its actual rates. California’s official schedule effective October 1, 2026 lists the following combined rates. New York City’s Department of Finance provides its general rate separately.

On a fully taxable $1,000 purchase, an 11.25% rate adds $112.50; an 8.875% rate adds $88.75. That is a difference of $23.75 on the same pre-tax price.

Read Also: The Best Tax Software on the Market

However, your annual cost depends on what you buy and whether those purchases are taxable. A higher rate on a narrower group of goods does not automatically produce the highest household burden.

How Much Do City Income Taxes Add?

New York City

New York City’s resident income tax uses graduated rates from 3.078% to 3.876%, in addition to state income tax. The state’s 2025 resident return instructions show the city schedule. Its 2026 withholding update confirms that the city wage-bracket tables and exact calculation methods did not change.

Use the schedule for your filing status and taxable income. Applying the highest city rate to your entire gross salary will generally overstate the city tax.

Philadelphia

Philadelphia reduced its Wage Tax rates on July 1, 2026. The official city schedule lists:

• Residents: 3.735%.
• Non-residents working in Philadelphia: 3.425%.

At the resident rate, $100,000 of wages fully subject to the tax would generate $3,735 of city Wage Tax over a full year at that rate. This is an illustration, not a calculation for calendar 2026, when the rate changed partway through the year.

Eligible taxpayers can receive income-based refunds. Residency, work location and refund rules therefore deserve attention alongside the headline rate.

Which State Has the Cheapest Taxes?

There is no universal cheapest state for every household. Someone living mainly on wages, someone receiving investment income and someone buying an expensive home may reach different conclusions.

One important correction concerns New Hampshire. Its Department of Revenue Administration confirms that the Interest and Dividends Tax was repealed effective January 1, 2025. Describing that tax as an ongoing charge is now outdated.

Washington also illustrates why income type matters: its capital gains excise tax can apply to qualifying long-term gains. A broad “no income tax” label does not explain every liability.

For state sales taxes, the Tax Foundation’s July 2026 comparison reports population-weighted combined state and local averages of 10.13% in Louisiana, 9.61% in Tennessee, and 9.57% in Washington. These are state averages, not rates for every city.

A useful comparison starts with your household numbers and includes housing, transport and insurance alongside taxes.

How to Compare Two Cities Before Moving

1. Use the same income and filing status. Include your spouse’s earnings and other income where relevant.
2. Price the actual home or rental. For a purchase, obtain a property-specific tax estimate.
3. Estimate taxable spending. Separate exempt purchases from those subject to sales tax.
4. Check employment rules. Where you live and where you work can both matter.
5. Include vehicles and recurring charges. Registration, vehicle taxes and local fees can affect the budget.
6. Apply available relief. Credits, exemptions and refunds can materially change the result.

For example, suppose one city saves you $2,000 a year in income taxes but adds $3,500 in property taxes and $600 in sales taxes. Your combined position is $2,100 worse before considering other costs. These are hypothetical figures showing the calculation.

Final Thoughts

A useful tax ranking must identify the household, the taxes included and the year measured. Current rates also need to be checked separately from studies published with a reporting delay.

Use the comparisons above to narrow your research, then build a budget around your own income, home and spending. That will tell you much more about affordability than a city’s position on a single list.

FAQ

1. What US city has the highest taxes?

Bridgeport leads the $75,000 household comparison above. The result depends on the study’s assumptions; it does not establish the highest bill for every taxpayer.

2. Does the highest sales tax mean the highest overall taxes?

No. Sales tax is only one component. Income, property and vehicle taxes can change the overall result substantially.

3. Does New Hampshire still tax interest and dividends?

No, for taxable periods beginning on or after January 1, 2025. Earlier-period obligations may still need to be addressed under the rules for those years.

4. Can two equally valuable homes have different tax bills?

Yes. Assessment limits, exemptions, ownership history and different taxing districts can produce different bills. Buyers should request an estimate for their own circumstances.