<prompt> Human: Good people of Reddit, we are looking at moving on from our Condo and into a house. We live in Chicago, and the most optimum area to live for our employment is in Northern Cook Lake County. The big problem is that all the houses we look at have high property tax. Were looking at 400 - 500k properties, and the taxes are ending up at 7000 - 15000 per year. The big question is how do people afford to live in these areas? What about deducting these taxes on your income tax and state income tax return? Our combined income is 180 - 200k. After refunds how much property tax are you really paying? We have no kids but might be in a few years. The other question is when selling your old property, are you required to put in all of your profit into your new home? Ive heard there is a tax benefit in doing that? Currently owe about 180k on my condo, and is valued at 375k, so this would easily cover a 2037; downpayment. If we do put in a large downpayment is there a likely-hood of better interest rates from the bank? thanks for your help  <response>: You ask how people can afford to live there...doesnt your own situation answer the question? You should be able to cover that home and property tax comfortably on your income. 