ATTOM: Overall Property Taxes Rose 7% in 2023

(Image courtesy of ATTOM)

ATTOM, Irvine, Calif., released an analysis of property taxes across the U.S., finding that there was a 6.9% increase in overall property taxes levied in 2023 from 2022.

Nationwide, $363.3 billion in property taxes were levied on single-family homes, up from $339.8 billion in 2022.

That compares with a 3.6% growth in 2022. The 6.9% level is the largest jump in the past five years.

The average tax on single-family homes grew by 4.1% in 2023, to $4,062. That follows a 3% increase the previous year.

The average effective tax rate nationwide is 0.87%, up from 0.83% in 2022.

“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 country remained in place,” said Rob Barber, CEO at ATTOM. “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.”

Fluctuations in home prices also played a role on final effective tax rate numbers.

Average property taxes rose by more than the national increase of 4.1% in 52.9% of the 223 metro areas ATTOM analyzed.

The top states with the highest effective property tax rates were Illinois, at 1.88%, New Jersey, at 1.64%, Connecticut, at 1.54%, New York, at 1.46%, and Nebraska, at 1.46%.

The 10 states with the lowest effective property tax rates were Hawaii, at 0.31%, Arizona, at 0.41%, Alabama, at 0.42%, Delaware, at 0.43%, and Tennessee, at 0.44%.