States With Highest and Lowest Property Taxes in America

The costs of homeownership simply keep rising: Property taxes within the U.S. elevated greater than twice as quick final yr in comparison with 2021, in keeping with new evaluation. The common U.S. house owner now pays practically $4,000 a yr in property taxes.

A report from the property knowledge firm ATTOM discovered that taxes in lots of areas within the South and West elevated extra rapidly than the nationwide common, though states within the Northeast continued to pay the very best charges within the nation.

ATTOM primarily based its evaluation on property knowledge from county tax assessors throughout the U.S. on the state, metro and county ranges, in addition to estimated market values for 87 million single-family houses.

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What the info says

• Property taxes on single-family houses jumped 3.6% general in 2022, to $339.8 billion. That’s greater than twice 2021’s 1.6% progress charge, however nonetheless decrease than 2020, when the rise was 5.4%.

• The common tax on single-family houses within the U.S. elevated 3% final yr to $3,901.

• The Northeast remained the area with the very best common property taxes final yr, with New Jersey main the pack with a single-family dwelling property tax of $9,527.

• The areas seeing the largest will increase in common property taxes have been metros within the South and West, the place the averages rose 5.8% and 5.5%, respectively.

“Property taxes continued their unending climb final yr,” Rob Barber, chief govt officer at ATTOM, stated in a information launch. “However, on steadiness, the most recent improve nationwide once more was modest.”

States with the very best property taxes

These states, all within the Northeast, had the very best common property taxes on single-family houses in 2022:

1. New Jersey ($9,527)
2. Connecticut ($7,671)
3. Massachusetts ($7,044)
4. New Hampshire ($6,855)
5. New York ($6,673)

States with the bottom property taxes

These states, all within the South or Southeast, had the bottom common property taxes for single-family houses in 2022:

1. West Virginia ($928)
2. Alabama ($1,022)
3. Arkansas ($1,228)
4. Louisiana ($1,296)
5. Mississippi ($1,311)

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The takeaway

Historically lower-cost states within the South and West have seen a surge in property taxes since individuals started relocating there during the pandemic — bringing a necessity for elevated providers and infrastructure with them.

“This yr, native governments and faculty programs will face even larger challenges maintaining taxes in examine, given rising inflation charges and a rising variety of industrial properties that could possibly be eligible for tax reductions after struggling a surge of vacancies through the pandemic,” Barber stated within the information launch.

Nonetheless, property taxes within the South and West are low in comparison with the Northeast, which is dwelling to seven out of 10 states with the very best property taxes.