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US Property Taxes Increased in 40 States in 2025 Despite Home Price Decline
Property taxes on single-family homes rose 3.7 percent nationwide in 2025, reaching $396.8 billion across 89.6 million homes, according to ATTOM data. The effective tax rate increased to 0.9 percent, the highest since 2020, even as the average home value fell 1.7 percent to $494,231. Northeast and Midwest states recorded the highest rates, while Western states saw declines.
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Property taxes on single-family homes rose nationwide in 2025, even as home values declined.
The average single-family home incurred property taxes in 2025. Home prices had risen significantly since the start of the COVID-19 pandemic.
The Northeast and Midwest states had the highest effective property tax rates in 2025.
Homeowners in these states also faced some of the highest average tax bills. In contrast, property taxes declined in some states, mostly in the West.
These states also had the lowest average tax bills.
The rise in property taxes is attributed to factors beyond home values, including local government costs and tax policies.
A spokesperson noted that tax bills reflect more than just home values. Higher tax bills combined with declining home values led to increased effective tax rates. Home prices had increased substantially following the COVID-19 pandemic due to limited supply and sustained demand, contributing to higher assessed values and taxes in prior years.
Lawmakers in various states have implemented relief measures for homeowners, though the 2025 increases persisted. The data covers single-family homes and highlights ongoing challenges in housing affordability amid fluctuating market conditions. Affected groups include homeowners, particularly those with low incomes or fixed incomes such as seniors, who may face higher financial burdens.
Future tax assessments will depend on local policies, home value trends, and economic factors. Additional data from various providers may provide further insights into 2026 trends.
