Madison is considered one of the cities with the highest property tax burden in Wisconsin. As the state capital and a college town, it has a large budget for public services and school districts, which is reflected in the tax rates.

As of 2025, the net mill rate for the city of Madison is $20.95 per $1,000 of assessed value, which is about 2.1%. In comparison, the average effective tax rate for Dane County is around 1.7%, making Madison relatively high within the county.

The median home price in Dane County has recently risen to around $400,000. For homes in Madison, applying the effective tax rate of 2.1% results in an estimated annual property tax of about $8,400.

Wisconsin is near the Great Lakes, so it has little risk of hurricanes or earthquakes, but it is prone to heavy snowfall and ice in winter, as well as hail and strong winds in summer. Reflecting these risks, homeowners insurance premiums are typically set between $1,300 and $1,600 per year.

Maintenance costs are generally estimated at 1-2% of the home price, meaning for a $400,000 home, this would be between $4,000 and $8,000 annually. Considering the many older neighborhoods in Madison, a realistic estimate would be around 1.5%, or about $6,000.

When combining property taxes, insurance, and maintenance costs, the total annual cost of homeownership is around $15,800. This means that over $1,300 per month is needed in addition to the mortgage principal and interest, so it's essential to factor this into the budget when planning a move to Madison.

The state of Wisconsin automatically applies the School Levy Tax Credit and Lottery and Gaming Credit to tax bills, reducing the actual burden. Additionally, low-income homeowners can apply for the Homestead Credit, so qualifying households should take advantage of this opportunity.

Recent market trends show that Madison's tax rates are somewhat higher compared to nearby suburban areas like Middleton or Fitchburg. If commuting distances are manageable, exploring suburban areas could be a way to reduce tax burdens.

Condos or townhome developments near Madison often have separate HOA fees ranging from $150 to $350 per month. When comparing listings, it is advisable to consider not just the listing price but also the total monthly burden including taxes, insurance, and HOA fees.