As property tax bills arrive in mailboxes across Wisconsin, reactions range from shock to relief, depending on the municipality. Data from the U.S. Census Bureau highlights significant disparities in effective property tax rates across the state’s largest counties, offering insight into the factors behind these variations.
Effective property tax rates measure the amount of property taxes paid as a percentage of home value. This metric provides a clearer picture of tax burdens than nominal rates, which can be obscured by varying home values and tax structures.
Property taxes are a cornerstone of local government funding across the United States. They make up about 30% of total state and local tax collections, surpassing all other revenue sources. Unlike most taxes, property taxes are almost entirely levied at the local level, where they serve as the primary financial backbone for essential community services. Schools, road maintenance, law enforcement, fire departments, and emergency medical services all rely heavily on these funds. At the local level, property taxes represented a striking 72.5% of total tax collections during the same period, underscoring their critical role in supporting services tied to property ownership.
In 2023, Milwaukee County had the highest effective property tax rate among Wisconsin’s 25 largest counties at 1.81%. A typical Milwaukee County household with a median home value of $232,500 paid $4,210 in property taxes. Dane County, despite having the highest median property tax bill at $6,170, had an effective rate of 1.57% due to its higher median home value of $393,500.
Winnebago County followed with an effective rate of 1.51%, where the median home value was $222,400 and property taxes averaged $3,362. These rates illustrate how home values significantly influence effective tax burdens.
On the other hand, counties like Ozaukee and Waukesha, which boast some of the state’s highest median home values, had among the lowest effective rates, at just 1.08% and 1.09%, respectively.
The variation extends beyond simple percentages. Milwaukee County residents may feel the weight of high taxes compared to property values, while homeowners in counties like Ozaukee might appreciate a lower effective rate despite paying higher nominal taxes.
For homeowners, understanding their property tax bill involves considering both the assessed value of their home and the rates applied by local governments. As property tax rates reflect funding for schools, infrastructure, and local services, these figures also speak to broader community priorities.
Check out data from the highest property tax rates in Wisconsin largest counties.
Source: Badger Institute
