Property Tax Squeeze: Average U.S. Homeowner Bill Rises 3% in 2025
There may be a revolt against property taxes in the US, but the reality is that most states are still collecting property taxes – and they have increased across the board.
Nationally, the effective tax rate for single-family homes was 0.9% in 2025, up from 0.86% in 2024 and the highest since 2020, when the national effective tax rate was 1.1%, according to the latest property tax report from a data analytics firm ATOM.
The average single-family home, now valued at $494,231, generated $4,427 in taxes, a 3% increase from 2024.
And despite the assessed value for a single-family home in 2025 declining 1.7% year over year, 2024 values were still higher than previous years, making the average assessed value for single-family homes in 2025 one of the highest ever.
“Property taxes in 2025 show that tax bills reflect more than just home values,” he says Rob KapperCEO of ATTOM. “Even with a slight decline in prices, higher tax bills combined with falling house prices led to an increase in effective tax rates, underscoring the role of local government costs and changing tax policies.”
Which states are taxed the most and least?
Where you live can make a big difference in your tax bill.
The states with the highest effective tax rates were (in order): Illinois, New Jersey, Vermont, Connecticut, and Ohio.
The lowest were: Hawaii, Idaho, Wyoming, Arizona and Alabama.
Because property taxes are tied to home appraisals, it’s no surprise that the expensive Northeast states had the highest bills.
New Jersey topped the list ($10,499), followed by Connecticut ($8,901), New Hampshire ($8,174), Massachusetts ($7,904) and New York ($7,732).
But real estate experts say buyers aren’t bothered by the high bills, at least not those with means.
“Buyers are continually drawn to Boston for its world-class hospitals, universities and overall quality of life,” he says. George Sarkis by Douglas Elliman tells Realtor.com®. “For many buyers, especially those moving for work or education, access to those institutions justifies the higher tax environment, and as a result we are not seeing a meaningful exodus.”
Jessica Chestler by Douglas Elliman in New York echoes the sentiment. “We currently don’t see property taxes deterring serious buyers in New York City,” she tells Realtor.com. “For buyers, especially at the higher end, the emphasis is on lifestyle and opportunity. They understand what New York has to offer and are willing to pay for it, so property taxes are rarely the deciding factor.”
“Many buyers understand that higher tax bills can come with tradeoffs they value, whether it’s access to strong public services, attractive neighborhoods or other long-term benefits associated with location,” he agrees. Michael Reisor from Compass in New York.
But he says that doesn’t mean buyers aren’t looking closely at those numbers.
“When buyers are evaluating the purchase of a condo, co-op or townhome, they are absolutely paying attention to costs and thinking carefully about what those liabilities will look like over time,” he says.
For lower property taxes in general, head south. The states with the lowest average bills were West Virginia ($1,081), Alabama ($1,284), Arkansas ($1,387), Mississippi ($1,563) and Louisiana ($1,639).
The Midwest could not escape higher taxes. It may surprise some that Nebraska has a slightly higher effective tax rate than New York. But since houses in Nebraska are generally much cheaper, your tax bill there will probably still be a lot lower.
Then there’s Illinois. Although valuations in the Prairie State are much lower on average than in the Northeastern states, this state has the highest effective tax rate in the Midwest at 1.84%.
So it’s no surprise that Illinois is among the states up in arms.
In October 2025, Republican state Sen. Neil Anderson introduced SB 1862 to create a homestead exemption that eliminates property taxes for homeowners who have been paying property taxes for at least 30 years.
Highest taxed states:
Illinois
Effective tax rate: 1.84%
Median home price: $299,450
New Jersey
Effective tax rate: 1.58%
Median home price: $544,450
Vermont
Effective tax rate: 1.4%
Median home price: $495,000
Connecticut
Effective tax rate: 1.36%
Median home price: $507,500
Ohio
Effective tax rate: 1.32%
Median home price: $272,450
New Hampshire
Effective tax rate: 1.29%
Median home price: $587,450
Iowa
Effective tax rate: 1.25%
Median home price: $279,000
Pennsylvania
Effective tax rate: 1.24%
Median home price: $300,000
Nebraska
Effective tax rate: 1.24%
Median home price: $345,000
New York
Effective tax rate: 1.23%
Median home price: $672,000
Lowest taxed states:
Hawaii
Effective tax rate: 0.33%
Median home price: $747,545
Idaho
Effective tax rate: 0.39%
Median home price: $575,000
Wyoming
Effective tax rate: 0.40%
Median home price: $444,500
Arizona
Effective tax rate: 0.43%
Median home price: $475,000
Alabama
Effective tax rate: 0.43%
Median home price: $333,675
Utah
Effective tax rate: 0.45%
Median home price: $575,000
Delaware
Effective tax rate: 0.48%
Median home price: $499,450
West Virginia
Effective tax rate: 0.48%
Median home price: $249,750
Tennessee
Effective tax rate: 0.50%
Median home price: $425,250
Nevada
Effective tax rate: 0.52%
Median home price: $485,000
