Property Tax Burdens Rise for Homeowners

Homeowners across the U.S. are feeling the pinch as mortgage costs surge. New information indicates that property tax pressures increased last year, with details shared by analytics firm ATTOM.

The report highlights that by 2025, the property tax rate is expected to rise to 0.9%, up from 0.86% in 2024. This marks the highest level since 2020, when the country’s effective tax rate was at 1.1%. Interestingly, even though the projected price for a single-family home in 2025 is set to decline by 1.7% compared to the previous year, the 2024 values were still among the highest ever recorded.

Rob Barber, CEO of ATTOM, commented on the situation: “The 2025 property taxes illustrate that taxes reflect more than just home values. Even if prices dip slightly, the interplay between rising taxes and falling home prices has led to elevated effective tax rates. This situation sheds light on municipal expenses and evolving tax policies.”

Variations Across States

As for effective property tax rates, discrepancies exist across states, with the Northeast typically bearing the heavyweight. New Jersey tops the list with an effective tax rate of 1.58%, paired with a median home price of $544,450. Following close behind are Vermont and Connecticut at 1.4% and 1.36%, respectively, both hovering around median home prices of $500,000.

New Hampshire’s effective rate stands at 1.29%, based on a median home value of $587,450, while New York holds a rate of 1.23% with a median price of $672,000.

Interestingly, states with lower median home values have also found themselves facing significant property tax obligations. For instance, Ohio’s median home prices range from $272,000 to $345,000, with Iowa making the top ten list at 1.25%, accompanied by Pennsylvania and Nebraska at 1.24%.

In contrast, some areas boast lower effective tax rates, combining minimal taxes with substantial median home prices. Hawaii, for example, has the lowest effective rate at 0.33% and a median value of $747,545, but other Western states exhibit similar patterns.

Western States and Their Tax Rates

States like Idaho (0.39%), Wyoming (0.4%), Arizona (0.43%), Utah (0.48%), and Nevada (0.52%) rank among those with the smallest property tax burdens, accompanied by median home values ranging from $444,000 to $575,000. On the southern front, Alabama and Tennessee also enjoy relative tax relief; Alabama’s effective rate is 0.43% with a median home price of $333,675, while Tennessee registers 0.5% with median prices around $425,250.

Delaware presents an interesting case, holding an effective tax rate of 0.48% and showing a median home value near $500,000, marking it as an outlier among states with lower property tax obligations.

West Virginia rounds out the list with an effective tax rate of 0.48% but stands out for having the lowest median home price at $249,750.