Property Tax Surge Hits U.S. Homeowners as Costs Outpace Inflation Nationwide

Rising local tax burdens push average bills higher despite softening home values, new data shows.

By yourNEWS Media Newsroom

Property tax burdens increased across the United States in 2025 at a rate exceeding inflation, with homeowners paying significantly more even as home values showed slight declines in some areas.

According to reporting by Epoch Times, citing new data from ATTOM, Americans paid a total of $396.8 billion in property taxes on more than 89.6 million single-family homes, marking a 3.7 percent increase from the previous year.

The average tax bill rose to $4,427 per home, a 3 percent increase compared to 2024, based on findings from ATTOM’s annual report. The increase was attributed in part to a rise in the effective tax rate, which reached 0.9 percent nationally, the highest level recorded since 2020.

ATTOM’s analysis combined local tax assessment records with estimated property values. The average home value in 2025 was calculated at $494,231, reflecting a 1.7 percent decrease year over year following a sharp increase in 2024.

Despite the dip in property values, tax obligations continued to rise. The pace of property tax growth exceeded inflation as tracked by the U.S. Bureau of Labor Statistics, which remained below 3 percent for much of the year before reaching 3.3 percent in March, driven in part by higher energy and fuel costs.

Analysts attribute the sustained increase in tax bills to long-term housing price growth. The Tax Foundation reported that rising property assessments over the past several years have played a key role in driving higher taxes, even amid shifting market conditions.

Data from the Federal Reserve Bank of St. Louis shows the median home price increased from $327,100 in late 2019 to $405,300 by the end of 2025, representing a 24 percent rise over that period.

ATTOM CEO Rob Barber said the findings highlight broader factors influencing tax bills beyond home price changes.

“Even with a slight dip in prices, higher tax bills combined with declining home values led to an increase in effective tax rates, underscoring the role of local government costs and shifting tax policies. Regional disparities persist, with the Northeast and Midwest continuing to see the highest burdens,” Barber said.

More than half of metropolitan areas with populations exceeding 1 million recorded property tax increases above 3 percent in 2025, according to ATTOM.

Regional differences remained pronounced. New Jersey posted the highest average tax bill at $10,499, followed by Connecticut at $8,901 and New Hampshire at $8,174. Lower averages were reported in West Virginia at $1,081, Alabama at $1,284 and Arkansas at $1,387.

At the county level, Westchester County, New York, recorded the highest average property tax bill at $18,386, followed by Marin County, California, at $16,745 and Bergen County, New Jersey, at $14,443.

ATTOM calculated these averages by dividing total property tax collections by the number of single-family homes in each jurisdiction, providing a standardized comparison across regions.

The data reflects continued upward pressure on housing-related costs nationwide, with property taxes remaining a central component of local government revenue systems.