Chicago Tops the List for Commercial Real Property Tax Rates

Chicago and New York City have topped the list of cities for the highest effective property tax rates, more than double the 10-city average, in a recent report by Altus Group.

Altus Group, a provider of asset and fund intelligence for commercial real estate, released its inaugural U.S. Real Property Tax Benchmark Report with a comparative analysis of real property tax rates for commercial real estate across ten major cities in the United States. The report provides a comparison of property taxes paid in 2023 for office, multifamily, industrial, and retail properties.

“This report not only identifies cities with property tax assessments that do not align with local sales data, but also highlights where commercial property owners might consider filing appeals to secure property tax reductions and where they should prepare for higher taxes in the future,” said Sandi Prendergast, Director of Tax Research, Altus Group.