An analysis shows the average tax bill rose more than 3% in 2025
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Average U.S. property taxes rose again in 2025, with the typical bill climbing to $4,427, up 3% year over year, according to ATTOM.
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Total property taxes hit nearly $397 billion, a 3.7% annual increase, reflecting growing financial pressure on homeowners nationwide.
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Effective tax rates are rising even as home values dip, signaling a worsening tax burden driven by local costs and policy shifts, ATTOM said.
Costs for American homeowners continue to pile up. Not only are electric bills sharply higher, but homeowners also face a growing property tax burden.
A new report from real estate analytics firm ATTOM found that the average property tax bill on a single-family home rose to $4,427, marking a 3% increase from the previous year. At the same time, total property taxes levied nationwide climbed to $396.8 billion, up 3.7% annually.
What makes the trend stand out is that rising tax bills are no longer tied solely to surging home values. ATTOM reported that the average estimated value of a single-family home actually declined 1.7% year over year, yet the effective tax rate still increased to 0.9%, up from 0.86% in 2024.
"Property taxes in 2025 demonstrate that tax bills reflect more than just home values," said Rob Barber, CEO at ATTOM. "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."
A multi-year upward trend
The latest increase continues a pattern of rising property taxes over several years. In 2024, the average tax bill rose 2.7% to $4,172, following a 4.1% jump in 2023.
ATTOM data shows that property taxes have increased in a majority of U.S. markets, with more than 72% of major metro areas experiencing above-average tax hikes in recent years.
The sustained increases are being driven by a combination of factors beyond home appreciation, including rising costs for schools, infrastructure, and local government services, as well as changes in how tax burdens are distributed.
Regional disparities
The tax burden is not evenly distributed. Homeowners in the Northeast and Midwest continue to face the highest effective tax rates, with states like Illinois, New Jersey, and Connecticut topping the list.
Meanwhile, even in lower-tax states, rising home values can still translate into higher overall bills, underscoring the nationwide nature of the trend.
The rapid rise in property taxes is becoming a broader affordability issue, especially as it combines with higher mortgage rates, insurance costs, and general inflation. In some regions, the burden is intensifying due to shifts away from commercial property taxes, leaving homeowners to shoulder a larger share.
Posted: 2026-04-10 13:38:14

















