BAM Key Details: 

  • A recent ATTOM report shows property taxes on single-family homes increased by 6.9% across the United States in 2023, totaling $363 billion, with significant variations in rates across different states, metro areas, and counties.
  • The increase is nearly double the growth rate for 2022 and marks the largest tax surge in the past five years. 

Property taxes on single-family homes across the U.S. increased by nearly 7% in 2023, nearly doubling the previous year’s growth rate and resulting in a total of $363 billion in tax revenue. 

A recent report from ATTOM breaks down the numbers for the largest property tax surge in the past five years. 

The average annual increase is 4.1%, resulting in an effective nationwide tax rate of 0.87%, which is up slightly from 0.83% in 2022, when property taxes increased year over year by 3%.

That said, tax rates vary significantly across different states and metro areas. And every new homebuyer should be made aware of the rates in their chosen area. 

Read on for the highlights from ATTOM’s report. 

Property taxes are up 6.9% with an average annual tax increase of 4.1%

Property taxes for 2023 totaled $363.3 billion, reflecting an annual increase of 6.9%, which is almost double the annual increase reported for 2022. It’s also the largest surge in property taxes in the past five years. 

The average tax on a single-family home in the U.S. rose 4.1%, reaching a total $4,062, compared to the previous year’s 3% annual increase. 

Rates vary by region, with the highest effective tax rates seen in the Northeast and Midwest 

The effective nationwide tax rate increased by a slight margin from 0.83% in 2022 to 0.87% in 2023, marking the first annual increase since 2017. 

ATTOM-Property-taxes-by-county-map

Source: ATTOM

Click here for an interactive version of the above chart. 

ATTOM’s analysis is based on data from county tax assessor’s offices and shows effective property tax rates rising across much of the U.S. as property values declined and tax bills increased. 

Property taxes took an unusually high turn upward last year, pushing effective rates up, while huge gaps in average tax bills between different parts of the country remained in place. The tax increases were likely connected, at least in part, to inflationary pressures on the cost of operating local governments and schools, along with rising public employee wages and other major expenses.

Ongoing disparities in how much homeowners pay in different parts of the country are usually related to a couple of important things: varying levels of government services and reduced economies of scale in metro areas with many small municipalities that each maintain separate local governments and school systems.

Rob Barber

CEO at ATTOM

Property taxes at the state level

As the map above shows, states with the highest and lowest property tax rates show clear regional trends, with states in the Midwest and Northeast topping the list for the highest effective tax rates in 2023: 

  1. Illinois (1.88%)
  2. New Jersey (1.64%)
  3. Connecticut (1.54%)
  4. New York (1.46%)
  5. Nebraska (1.46%)
  6. Ohio (1.37%)
  7. Pennsylvania (1.33%)
  8. Vermont (1.29%)
  9. Kansas (1.26%)
  10. New Hampshire (1.25%)

Predictably, northeastern states also dominated the list for the highest average property taxes in the U.S., taking up the first five spots: 

  1. New Jersey ($9,488)
  2. Connecticut ($8,022)
  3. New York ($7,936)
  4. Massachusetts ($7,414)
  5. New Hampshire ($7,172)

Meanwhile, states in the South and West had the lowest effective property tax rates in 2023:

  1. Hawaii (0.31%)
  2. Arizona (0.41%)
  3. Alabama (0.42%)
  4. Delaware (0.43%)
  5. Tennessee (0.44%)
  6. Idaho (0.44%)
  7. Utah (0.45%)
  8. Nevada (0.48%)
  9. Colorado (0.48%)
  10. West Virginia (0.49%)

The top five states with the lowest average property taxes were all in the South: 

  1. West Virginia ($989)
  2. Alabama ($1,104)
  3. Arkansas ($1,296)
  4. Mississippi ($1,367)
  5. Louisiana ($1,418)

Property taxes by metro area

Among U.S. metros, 15 of the 25 highest effective tax rates were recorded in Illinois, Ohio, Pennsylvania, and Texas. Again, the Midwest and Northeast dominate the top five: 

  1. Akron, OH (2.71%)
  2. Rockford, IL (2.41%)
  3. Champaign, IL (1.95%)
  4. Trenton, NJ (1.94%)
  5. Peoria, IL (1.91%)

The top five among metros with populations of one million or more: 

  1. Chicago, IL (1.84%)
  2. Rochester, NY (1.77%)
  3. Hartford, CT (1.76%)
  4. Cleveland, OH (1.66%)
  5. Columbus, OH (1.45%)

The top five metros with the lowest effective property tax rates in 2023: 

  1. Daphne-Fairhope, AL (0.27%)
  2. Salisbury, MD (0.30%)
  3. Honolulu, HI (0.31%)
  4. Knoxville, TN (0.32%)
  5. Tuscaloosa, AL (0.32%)

Among metros with populations of one million or more, the top five with the lowest effective tax rates for 2023 were— 

  1. Honolulu, HI (0.31%)
  2. Phoenix, AZ (0.38%)
  3. Nashville, TN (0.45%)
  4. Las Vegas, NV (0.48%)
  5. Salt Lake City, UT (0.49%)

In more than half the metros in ATTOM’s analysis, property taxes rose faster than the national average year-over-year increase of 4.1% in 2023: 

Among metros with populations of one million or more, those with the largest annual increases in average property taxes (2022-2023) were— 

  1. Charlotte, NC (up 31.5%)
  2. Indianapolis, IN (up 18.8%)
  3. Kansas City, MO (up 16.8%)
  4. Denver, CO (up 15.7%)
  5. Atlanta, GA (up 15.2%)

The top five major metros with the biggest annual drops in average property taxes (2022-2023): 

  1. Rochester, NY (down 28.6%)
  2. Houston, TX (down 26%)
  3. San Antonio, TX (down 11%)
  4. Baltimore, MD (down 8.3%)
  5. Buffalo, NY (down 3%)

Counties with the highest property taxes in 2023

Twenty-one of the counties in ATTOM’s analysis had an average single-family-home property tax of more than $10,000, with 12 of these counties in the New York City metro area. 

Among counties with at least 100,000 single-family homes, the five with the highest average property taxes in 2023: 

  1. Essex County, NJ (outside New York City) ($13,145)
  2. Bergen County, NJ (outside New York City) ($13,112)
  3. Nassau County (outside New York City), NY ($13,059)
  4. San Mateo County, CA ($13,001)
  5. Santa Clara County (San Jose), CA ($12,462)

Read the full report for more information, including methodology. 

Byron reviewed the data in a recent Hot Sheet. Tune in to get your day-by-day review, Mondays through Thursdays, of the latest news on the housing market and U.S. economy. BAMx members have 24/7 access to the show notes and all the charts.