IRVINE, CA — Property taxes levied on U.S. single-family homes totaled $357.5 billion in 2024, down 1.6% from the previous year, according to ATTOM’s newly released property tax analysis. Despite this decrease in total revenues, the average property tax bill for a single-family home rose 2.7%, reaching $4,172.
The study reveals that the nationwide effective property tax rate fell slightly to 0.86%, compared to 0.87% in 2023. This decline coincided with a significant turnaround in home values, which rebounded by 4.8% to a national average of $486,456 after a rare dip in 2023. While home values generally rose, ATTOM CEO Rob Barber explained that higher property values don’t automatically translate to higher taxes. “We’ve seen taxes increase not just due to property appreciation but also because of growing costs to operate local governments and schools,” Barber noted.
Regional and State Trends
The highest effective property tax rates remain concentrated in the Northeast and Midwest, led by Illinois (1.87%), New Jersey (1.59%), Connecticut (1.48%), Nebraska (1.32%), and Ohio (1.31%). Notably, all five of these states recorded slight reductions in their rates over the past year.
Conversely, the lowest effective tax rates are in the South and West. Hawaii retained the nation’s lowest rate at 0.33%, while states including Idaho, Arizona, and Alabama followed closely at 0.41%.
Property tax bills, however, showed a different trend. New Jersey topped the nation with an average bill of $10,135 per home, nearly 10 times higher than West Virginia’s $1,027 average, the lowest in the U.S.
Metro Areas Highlight Significant Disparities
Among metro areas, many of the highest effective tax rates were located in the Midwest, particularly Illinois. Rockford (2.06%), Chicago (1.91%), and Peoria (1.89%) led the nation. On the other hand, cities such as Honolulu, Hawaii (0.34%), and Salisbury, Maryland (0.29%) offered the lowest rates.
Homeowners in metropolitan areas also saw contrasting changes in tax bills. Raleigh, North Carolina, experienced the largest increase at 21.1%, while residents in Charlotte, North Carolina, saw their average tax bills decrease by 7.3%.
Looking Ahead
With property values increasing and effective tax rates falling, the property tax landscape remains dynamic across regions. ATTOM’s analysis offers a blend of optimism for rising home equity and concerns over the varying tax burdens across states and metro areas. While some regions benefit from relatively lower taxes, disparities remain stark, particularly in areas with high-value homes and robust local services. Future shifts in home values, local funding needs, and policy adjustments will likely shape the tax environment in the coming years.
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