The 11 worst places to buy a home if Trump's tax plan passes

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The 11 worst places to buy a home if Trump's tax plan passes

new home sales

REUTERS/Larry Downing

The New York metro area will be hit pretty hard.

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  • Republicans have reached a preliminary agreement on their tax bill, meaning tax reform could soon be finalized.
  • The proposed tax bill limits the property tax deduction to $10,000 a year - currently, homeowners can deduct their property tax in full.
  • We compiled a list of the places where homeowners and prospective homebuyers will be hit the hardest if the tax bill is signed into law.

House and Senate Republicans came to a preliminary agreement Wednesday on their final tax bill.

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The bill could affect current and future homeowners in a few different ways, including capping the deduction for state and local property taxes at $10,000. Under the current tax system, there is no cap on the amount of property taxes a homeowner can deduct.

As part of its latest housing report, Trulia found the top metro areas in the US with the greatest share of homeowners who pay $10,000 or more in property taxes annually. It's these places where homeowners and prospective homebuyers will be hit the hardest if the tax bill is signed into law.

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New Yorkers would be hit especially hard. In each of three New York area metros - New York City, Newark, and Long Island - more than one out of every five households pay at least $10,000 annually in property taxes.

Below, check out the top 11 worst places to buy a home if Trump's tax plan passes, based on where the largest share of homeowners pay more than $10,000 in property taxes. For each metro, we also calculated the minimum home value at which the annual property tax bill would be at least $10,000.