America’s homeowners face rising property tax burden by 2025, report finds
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American homeowners across the country are feeling the pinch property taxeswith new data showing that the property tax burden increased last year.
Data from statistical firm ATTOM showed that the effective tax rate is single family homes it was 0.9% in 2025, up from 0.86% in 2024 and the highest rate since 2020 when the national effective tax rate was 1.1%, according to a Realtor.com report.
It also found that while the average value of a single-family home fell 1.7% year-over-year in 2025, it was still one of the highest single-family values on record because the 2024 values were higher than their predecessors.
“Property taxes in 2025 show that tax credits reflect more than home values,” said ATTOM CEO Rob Barber. “Even with a modest decline in prices, higher tax liabilities combined with lower housing prices have led to an increase in effective tax rates, emphasizing the role of local government spending and tax policy reform.”
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Houses in the borough of Queens in New York City. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
The effective property tax rate varies by state and the report found that the states with the highest effective tax rates for single-family homes tend to be in the Northeast.
New Jersey led the way with an effective tax rate of 1.58% and a median home price for $544,450. It was followed by Vermont, with an effective tax rate of 1.4%, and Connecticut at 1.36%, both with median home prices around $500,000.
New Hampshire’s effective tax rate was 1.29% based on a home value of $587,450, while New York had an effective tax rate of 1.23% and a median home value of $672,000.
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Other states with lower median housing prices also faced higher property tax burdens. (Angus Mordant/Bloomberg via Getty Images)
Several states with lower median home values also ranked among the most efficient property tax rates. In Ohio was 1.32%, while Iowa at 1.25%, Pennsylvania at 1.24%, and Nebraska at 1.24% rounded out the top 10 with median home prices ranging between $272,000 and $345,000.
States with the lowest effective tax rates tend to have significant differences in terms of the median home value of a given state.
In Hawaii has a low effective tax rate of 0.33% with a median home value of $747,545, while other states in the West have similarly low effective tax rates and high home prices.
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Western countries used to have lower property tax burdens. (Sal Loeb/AFP via Getty Images.)
Idaho (0.39%), Wyoming (0.4%), In Arizona (0.43%), Utah (0.48%) and Nevada (0.52%) were among the states with the lowest property tax burdens and had median home prices ranging between $444,000 and $575,000.
The two Southern states with the lowest relative property tax burdens include Alabama with an effective tax rate of 0.43% and a median home value of $333,675, while Tennessee (0.5%) with a median of $425,250.
Delaware’s effective tax rate of 0.48% and its location in the Northeast make it an outlier among states with low property tax burdens, with a median home value of just over $500,000.
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West Virginia also had an effective tax rate of 0.48% with a lower median home value of $249,750.
