See where U.S. homeowners pay the highest property taxes by county and state

Property taxes have always been a hot topic of debate in the United States, with local governments constantly trying to strike a balance between funding essential services and not burdening homeowners and businesses. Recently, New York City Mayor Zohran Mamdani stirred up controversy by proposing a significant increase in property taxes to address a budget shortfall. This move was seen as a strategy to push state lawmakers to raise taxes on wealthy individuals and corporations, but it faced strong opposition due to the financial strain already felt by many Americans.

Property taxes are a crucial source of revenue for local governments, contributing to 70% of all local tax collections. However, as home values across the country continue to rise, tax assessments have also increased, leading to higher property taxes for many residents. On the other hand, states like Florida, Georgia, and North Dakota are considering eliminating property taxes for homeowners altogether.

According to a report by the Tax Policy Center, the median property tax bill in the U.S. has surged by 30% between 2019 and 2024. Illinois currently has the highest effective property tax rate in the country, while Hawaii boasts the lowest. This trend of rising property taxes has sparked calls for cuts or even abolishment of property taxes, as homeowners fear being squeezed by larger tax bills.

In New York City, Mayor Mamdani’s proposal to raise property taxes comes in response to a $5.4 billion budget shortfall. However, the plan is facing opposition from Governor Kathy Hochul and City Council Speaker Julie Menin, making it unlikely to succeed. New York County, which includes Manhattan, is one of the top 16 counties in the U.S. with the highest median property tax payments, with homeowners paying over $10,000 per year on average.

Other counties with high property taxes include eight in New Jersey, five more in New York, Falls Church City in Virginia, and Marin County in California. The debate over property taxes continues to be a contentious issue, with local governments striving to find a balance between necessary revenue generation and the financial burden on residents and businesses.

As the discussion around property taxes evolves, it is essential for policymakers to consider the impact of tax policies on homeowners and businesses while ensuring the sustainability of essential services. The ongoing debate highlights the complex nature of property taxes and the challenges faced by local governments in meeting their budget priorities.