by furqanBy Aimee Picchi
Property taxes are officially outrunning inflation. According to a new report from ATTOM, the average U.S. homeowner paid $4,427 last year—a 3.7% increase that eclipses the 2.7% rise in the Consumer Price Index. While the national average is climbing, some states are seeing explosive hikes, with Delaware and Maryland facing jumps of 18% and 11.6% respectively. These taxes remain the backbone of local infrastructure, accounting for 70% of all local tax revenue used to fund schools, roads, and emergency services.
Key Takeaways from the Latest Property Tax Analysis:
- The Paradox: Property taxes rose in 40 states despite a 1.7% year-over-year decrease in average home values ($494,231).
- The Drivers: Increases are fueled by municipal needs (schools, roads, and public safety) rather than inflation or home assessments.
- Highest vs. Lowest: New Jersey remains the costliest ($10,500 avg), while West Virginia offers the most relief ($1,081 avg).
- Policy Wins: 10 states saw tax declines, largely due to legislative action. Wyoming introduced a 25% cut for homes under $1M, and Montana utilized a new tiered rebate system to lower costs for 80% of its residents.
ApkiProperty Insight: Investors often assume that if property prices fall, their tax burden will follow. However, as seen in this analysis, local governments often hike tax rates to cover the rising costs of public services, schools, and infrastructure—regardless of whether your property’s value went up or down.