U.S. Housing and Property Taxes

A new nationwide analysis from real estate data firm ATTOM finds the average U.S. homeowner paid $4,427 in property taxes last year, a 3.7% increase from 2024 that outstripped the 2.7% rise in the Consumer Price Index, even as average estimated single‑family home values dipped 1.7% to $494,231. Taxes climbed in 40 states and Washington, D.C., with especially sharp hikes of about 18% in Delaware and 11.6% in Maryland, while 10 mostly Western states saw declines thanks to targeted cuts and rebates such as Wyoming’s 25% reduction on homes up to $1 million and Montana’s new rebate and tiered system. ATTOM and tax‑policy experts say the divergence from inflation underscores that local revenue needs for schools, roads, and public safety — and political decisions on rates and relief — drive property tax bills more than year‑to‑year home-price moves. The burden remains heaviest in the Northeast, California and Illinois, with the average New Jersey homeowner paying about $10,500 annually, compared with just $1,081 in West Virginia, highlighting stark regional disparities that are drawing increasing attention from homeowners already squeezed by higher mortgage rates and insurance costs. The findings are feeding renewed online debate over whether states should cap annual tax growth, broaden other revenue sources like sales or energy taxes, or expand relief for seniors and middle‑income owners facing rising local levies despite flat or falling valuations.