U.S. property taxes to rise nearly 7% in 2023

Total number of single-family homes property tax Data from 89.4 million households analyzed by Attom shows growth will almost double in 2023, rising 6.9% to $363.3 billion.

Compared with 3.6% in 2022, this increase is the largest in the past five years.This confirms it Other reports and rumor suggests that this cost has been rising rapidly, which may result in Mortgage performance under pressure in some areas.

“Last year, there were unusually high increases in property taxes, pushing up effective tax rates, while there remain wide disparities in average tax bills between regions across the country,” Attom CEO Rob Barber said in a news release. The increase may be at least partly related to localities. Government and school operating costs are related to inflationary pressures. “

Last year’s increase brought the average effective property tax rate on a typical home up 4.1 percent to 0.87 percent, or $4,062, compared with 3 percent and 0.83 percent the year before; but as Barber noted, there are considerable regional differences.

Illinois leads all states with an effective tax rate of 1.88%, according to Attom’s calculations. Attom based the effective tax rate as a percentage of the home’s average estimated market value and calculated that Hawaii had the lowest effective tax rate at 0.31%.

The most expensive states by dollar amount are in the Northeast, where New Jersey’s average property tax of $9,488 is nearly 10 times higher than the state with the lowest average tax bill, West Virginia, which has an average property tax of just $989.

“Differences in what homeowners pay in different parts of the country are often related to several important factors: varying levels of government services and reduced economies of scale in metropolitan areas with many smaller cities,” Barber said.

He noted that small cities that do not have shared services and independently run government and school systems often cannot operate efficiently.

Additionally, some jurisdictions may take steps to lower property taxes in response to the pressures of higher property taxes.texas voters A ballot measure was approved last year Aims to reduce school district property taxes by $18 million.

Certain counties have the highest single-family property tax bills, the report said, noting that a total of 1,502 counties have single-family property tax bills exceeding $10,000.

The top two counties in this category are Essex and Bergen counties in New Jersey, with average property taxes last year of $13,145 and $13,112, respectively. Third place was Nassau County, New York, at $13,059.

Rounding out the top five are San Mateo and Santa Clara counties in California, with prices of $13,001 and $12,462 respectively.

Attom, a real estate data management company, analyzed state, city and county property tax information provided by county tax assessor’s offices nationwide to conduct research and use an automated appraisal model to derive the estimated home values ​​used in the report.

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