Household Income and Property Taxes

A previous blog discussed the Tax Foundation data and the additional light shed on Pennsylvania’s counties in a state study. Allegheny County ranked 1st in the state when measuring tax burden by the median property tax bill and the median value of a home.

How about tax burden when measuring property taxes paid as a percentage of income? In Allegheny County with the median property tax bill of $2,547 and median household income of $61.9k, the property tax burden works out to 4.1%. The U.S. average complied by the Foundation was 2.85% (taxes of $1,854 and household income of $65,088).

Unlike the taxes/home value metric that placed Allegheny County at the top of the state’s ranking, the 4.1% was lower than that of many other counties, including Berks (4.54%), Delaware (4.97%), Northampton (4.67%), and Monroe (5.31%, the state’s highest). Using the County’s median household income to find similar counties (in the $60k to $66k range) found counties that fell below Allegheny’s tax-to-income burden (Adams County, 3.05%, Butler County, 2.97%, and six others) as well as counties that were above Allegheny County’s level (Berks, Monroe, and Pike, 4.59%).

Food for thought as the County works through the process of a new reasessment for 2012.