For homebuyers already grappling with high home prices, soaring mortgage rates, and escalating homeowners insurance costs, there’s more unwelcome news: property taxes on single-family homes across the United States saw a significant jump in 2024. According to a recent report from ATTOM Data Solutions, a leading property data and analytics firm, the average property tax on a single-family home reached $4,172 in 2024, marking a 2.7% increase compared to the previous year.
This rise in the average tax bill underscores the persistent challenges facing those trying to achieve homeownership. While the total amount of property taxes levied nationwide actually decreased slightly by 1.6% to $357.5 billion, the fact that the average burden per homeowner increased highlights shifting dynamics in the housing market.
Interestingly, the national average effective property tax rate saw a slight dip, falling to 0.86% in 2024 from 0.87% in 2023. This seemingly contradictory trend is partly explained by the rebounding housing market. After a 1.7% decrease in 2023, the national average home value surged by 4.8% to $486,456 in 2024. As home values increase, the effective tax rate can decrease even if the actual tax bill goes up, depending on how local tax levies are adjusted. It’s important to note that ATTOM’s analysis excluded New York, a state known for its high property tax rates, due to data limitations.
Rob Barber, CEO of ATTOM, shed light on this dynamic, stating, “While rising home values can influence property taxes, they don’t automatically lead to higher bills for homeowners. In many areas, we’ve seen taxes increase not just due to property appreciation, but also because of growing costs to operate local governments and schools or shifts in how tax burdens are distributed.”
Local governments heavily rely on property tax revenues to fund essential public services such as schools, emergency services, and infrastructure. Therefore, increases in these costs can translate directly to higher property tax bills for homeowners.
Where Property Taxes Are Hitting the Hardest
Unsurprisingly, Northeastern and Midwestern states continue to shoulder the highest effective property tax rates:
- Illinois: 1.87%
- New Jersey: 1.59%
- Connecticut: 1.48%
- Nebraska: 1.32%
- Ohio: 1.31%
In contrast, many Southern and Western states offer more affordable property tax environments. The lowest effective tax rates were found in:
- Hawaii: 0.33%
- Idaho, Arizona, Alabama: 0.41%
- Delaware: 0.43%
Average Property Tax Bill By State
The average tax bill varies dramatically by location. New Jersey homeowners paid the highest average property tax bill at $10,135, nearly ten times more than West Virginia’s average of just $1,027.
Other states with notably high tax bills include:
- Connecticut: $8,402
- New Hampshire: $7,723
- Massachusetts: $7,720
- California: $7,131
Though New York was not included in ATTOM’s analysis, data from the Tax Foundation shows the state had a 1.6% effective property tax rate in 2023, the sixth-highest in the nation.
For our friends here in The Sunshine State, Florida ranked as the 24th lowest for property tax rate in 2024 with a 0.89% rate.
Summary
Property taxes are a critical funding source for local services—everything from public schools and police departments to road maintenance and emergency medical services. However, the growing financial strain on homeowners could impact housing affordability, especially in states where taxes are already high.
As home values rise and local governments face increased operating costs, property taxes are likely to remain a hot-button issue for homebuyers, homeowners, and policymakers alike. If you’re planning to buy or own a home in 2024, don’t overlook property taxes. They’re a significant—and often growing—part of your total housing costs.
Are you thinking about buying or selling real estate in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search App for your smartphone or tablet.
