US homeowners paid an average of over $4,000 in property taxes in the US last year, marking the largest increase in five years.
Data from Attom, a real estate data firm tracking property taxes for 89.4 million single-family homes, reveals that governments collected over $363 billion in 2023, showing a 6.9% increase, nearly doubling the 3.6% gain seen the previous year.
US Property Tax Rise for Homeowners
According to Rob Barber, CEO of Attom, the property taxes in the US saw an increase last year, leading to higher rates, while there were larger differences in average tax bills across different regions of the country.
Barber added that the US property tax rise was likely due to inflationary pressures affecting the costs of running local governments and schools, the rise in wages for public employees, and other significant expenses.
In 2023, the highest effective property tax rates are in Illinois, Connecticut, New Jersey, Nebraska, and New York.
On a national scale, the US property tax rise was by 4.1% in 2023. However, there were large differences in how much US homeowners paid across various regions of the country, both in terms of percentage changes and the total tax bill. For instance, US homeowners in Charlotte, North Carolina, experienced a US property tax rise of 31.5% last year, while property taxes in Atlanta went up by 15.2%, as per the report.
Property Taxes in the US
According to ATTOM, a major provider of land, property, and real estate data, the property taxes in the US on the 89.4 million homes came to a total of $363.3 billion in 2023, showing a US property tax rise of 6.9% from $339.8 billion in 2022.
This US property tax rise is nearly double the 3.6% seen in the previous year and has marked the largest increase in the past five years. Additionally, the US homeowners also experienced an average tax on single-family homes rose by 4.1% in 2023, reaching $4,062 compared to a 3% increase the year before.
The report went through the data of property taxes in the US, sourced from county tax assessor offices across the US at the state, metro, and county levels. This data was combined with estimated market values of single-family US homeowners calculated using an automated valuation model (AVM).
The US property tax rise was due to declining home values and rising tax bills. Nationally, the average home value has decreased by 1.7%, which had seen a decade-long increase, and slowed down in 2023.
The trends in property taxes in the US for this year will depend largely on whether recent declines in home mortgage rates and the low inventory of homes for sale across the nation stimulate a market recovery.
Rob Barber further said that property taxes in the US have gone through a significant increase last year. He added that the ongoing discrepancies in the tax burdens of US homeowners across different regions of the country are because of many reasons. Some of the reasons behind the US property tax rise are varying levels of government services and the lack of economies of scale, particularly in metropolitan areas with numerous small municipalities that each maintain separate local governments and school systems.
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