Property Taxes on Single-Family Homes Rise Across U.S. to $328B

Property taxes increase faster than national average in 74 percent of markets

Despite the national increase in the average property tax of just 1.8 percent from 2020 to 2021, larger gains were seen in 163, or 74 percent, of the 220 metropolitan statistical areas analyzed in the report. That happened as taxes rose far less than the national figure across major metros with populations of at least 1 million last year. Those areas had about three-quarters of the population of all metros in the report, which helped keep the national increase low.

Among metro areas with a population of at least 1 million that had the largest increases in average property taxes last year, were Nashville, TN (up 27 percent); Milwaukee, WI (up 18.6 percent); Baltimore, MD (up 12.3 percent); Grand Rapids, MI (up 12.3 percent) and Louisville, KY (up 11 percent).

Major markets with the largest decreases in average property taxes included Pittsburgh, PA (down 35.1 percent); New Orleans, LA (down 20.2 percent); Houston, TX (down 18.7 percent); Dallas, TX (down 12.2 percent) and Austin, TX (down 7.7 percent).

Highest effective property tax rates in Illinois, New Jersey and Connecticut

States with the highest effective property tax rates in 2021 were Illinois (1.86 percent), New Jersey (1.73 percent), Connecticut (1.67 percent), Vermont (1.55 percent) and Pennsylvania (1.37 percent).

Other states in the top 10 for highest effective property tax rates were Nebraska (1.36 percent), New Hampshire (1.35 percent), New York (1.35 percent), Texas (1.31 percent) and Iowa (1.31 percent).

Hawaii, Alabama, Utah, Arizona and Nevada post lowest effective rates

The lowest effective tax rates in 2021 were in Hawaii (0.27 percent), Alabama (0.37 percent), Utah (0.39 percent), Arizona (0.41 percent) and Nevada (0.41 percent).

Other states in the top 10 for lowest effective property tax rates last year were Idaho (0.43 percent), Colorado (0.43 percent), Tennessee (0.45 percent), West Virginia (0.5 percent) and South Carolina (0.5 percent).

Source:Attom.com