Sick of paying your property taxes? Homeowners in this Missouri town have dodged the headache for almost 40 years — here's how
Let’s face it — no one enjoys paying property taxes, especially when they increase without notice — and by as much as 1,000%, as in Chicago’s Cook County in 2023. You might not even know where the money goes or how it’s spent, but you’re still expected to pay up.
Soaring property taxes can turn once-affordable homes into for-sale signs. But in Ballwin, Missouri, homeowners have dodged this headache for nearly 40 years. This city of 31,300, composed of roughly one-third German descendants, according to the U.S. Census Bureau, hasn’t charged municipal property taxes since 1987. Zilch. No wonder Ballwin ranks second on realtor.com’s list of Hottest ZIP Codes of 2024. (Gahanna, Ohio, a suburb of Columbus, finished first.)
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With homes selling fast — Ballwin had 112 homes on the market as of Sept. 11— and many are already gone by the time you finish this sentence. It’s definitely a seller’s market. In August, 65% of properties sold above the asking price, and homes stayed on the market for just 14 days, even with 30-year mortgage rates, hovering around 6.35%.
Ballwin’s zero-tax secret sauce
While Ballwin doesn’t have municipal property taxes, locals know other fees make up for it. A mix of sales taxes, utility gross receipts taxes and recreational revenues fill in the gaps. However, Ballwin’s 8.74% total sales tax can be easily cut by shopping in nearby Wildwood, where it’s 8.24%.
Ballwin’s quality of life is a big draw. It scores an A+ on niche.com for its restaurants, coffee shops, schools and job opportunities. Its parks are also highly rated, but there is a catch.
For instance, A family platinum membership at The Pointe, Ballwin’s fitness center, costs $912 a year, which includes access to the aquatic center access and babysitting services.
Housing in Ballwin reflects its popularity. With a gonzo seller’s market, the median listing price is around $409,000. This is higher than other hot zip codes, like Highland, Indiana at $250,000, and Rochester, New York, where homes average a much more affordable 2.7 times higher than Rochester, N.Y.: a much more affordable $151,000.
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How property taxes compare elsewhere
So how does Ballwin’s zero property tax and sales tax stack up against other cities on realtor.com’s list?
Gahanna, Ohio, with a typical home assessed at $200,000, puts the total for the 2022 tax year at $5,227, with the city’s portion just $147. Homes there typically stay on the market for just 11 days.
In Salem, Massachusetts — famous for its witch trials — the median home price won’t exactly cast a spell on you. They’re $596,000, good for third place and ahead of Basking Ridge, N.J. at $967,000. In this town of 44,500, property taxes account for about half of Salem’s revenue with a rate of 14% per year. A $200,000 home would result in an annual tax bill of $28,000. Still, homes sell quickly, with a median market time of 16 days.
In Rochester, New York, property taxes, including the school rate, total $11.105 per $1,000 of assessed value. A $200,000 home would incur $2,221 in taxes. Despite the lower home prices in this city of 211,000, properties typically sell within eight days, the fastest turnover on the list.
While property taxes play a crucial role in home affordability, they are just one factor, similar to comparing gas prices when buying a car. In some markets, lower taxes could be outweighed by higher home prices and the general cost of living.
That’s why it’s important to crunch all the numbers before house hunting — taxes, home prices and overall quality of life — without letting blind rage for the taxman cloud your vision of domestic bliss.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
