Property taxes are rising faster than inflation. See what homeowners pay across the U.S.

Property taxes in the United States are on the rise, outpacing inflation and putting a strain on homeowners’ wallets. According to a recent analysis by real estate data firm ATTOM, the average homeowner paid $4,427 in property taxes last year, a 3.7% increase from the previous year. This increase is higher than the 2.7% rise in the Consumer Price Index, indicating that property taxes are growing at a faster rate than the cost of goods and services.

Property taxes play a crucial role in funding local government services such as schools, roads, and public safety. They make up a significant portion of local tax collections, with the Tax Foundation reporting that 70 cents of every dollar in local taxes come from property taxes. Despite a slight decrease in the average estimated value of single-family homes, property taxes continue to climb, driven by the rising costs of providing essential services.

ATTOM CEO Rob Barber explains that property taxes often exceed inflation rates due to local government funding needs. Municipalities may raise tax rates to cover the increasing costs of schools, infrastructure, and public services, regardless of broader economic trends. While property taxes increased in most states, there were declines in 10 states, primarily in the West, where lawmakers implemented tax cuts or alternative revenue sources to ease the burden on homeowners.

Homeowners in the Northeast, California, and Illinois bear the highest property tax burdens, with New Jersey residents paying an average of $10,500 annually. In contrast, West Virginia has the lowest average property tax levy at $1,081 per home. These variations reflect different state policies and economic conditions that impact property tax rates.

Overall, property taxes continue to be a significant expense for homeowners across the country. As local governments grapple with rising costs and budget constraints, finding a balance between funding essential services and easing the tax burden on residents remains a challenge. Stay informed about property tax trends and policies to navigate the changing landscape of homeownership.