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Average Property Tax Analysis in the U.S. for 2024

In a recent release by ATTOM, a recognized leader in property data and real estate analytics, a comprehensive analysis of property taxes across single-family homes in the United States has confirmed that in 2024, the average property tax bill increased by 2.7%. This uptick brings the average property tax to $4,172.

The report highlights that while property taxes are on the rise, the total amount levied on single-family homes in 2024 reached $357.5 billion—representing a minor decrease of 1.6% from 2023. This increase in average tax bill follows a significant jump of 4.1% in the previous year.

Effective Tax Rate Observations

The average effective property tax rate across the country has seen a modest decline, from 0.87% in 2023 to 0.86% in 2024. This rate reflects the annual property tax as a percentage of the average market value of homes. Notably, homes in New York were excluded from this analysis, which limits the comprehensiveness of the data.

Home Values Rebounding

Despite the rising property taxes, the effective tax rates mostly declined owing to a surge in estimated home values, which averaged $486,456 nationally—a 4.8% increase from the previous year. This follows a rare drop in home values in 2023. Rob Barber, the CEO of ATTOM, states that while increasing home values might contribute to property tax hikes, they do not always correlate directly with higher tax bills for homeowners. Local government costs and shifts in tax burden distribution are also influential factors.

Regional Variations: The Northeast and Midwest

The report indicates significant regional disparities in property tax rates. The areas with the highest tax rates remain concentrated in the Northeast and Midwest. The states showing the highest effective rates in 2024 included:

• - Illinois (1.87%)
• - New Jersey (1.59%)
• - Connecticut (1.48%)
• - Nebraska (1.32%)
• - Ohio (1.31%)

These states maintained slightly lower rates compared to the previous year. Conversely, states with the lowest tax rates, primarily located in the South and West, were led by Hawaii at 0.33%, followed closely by Idaho, Arizona, and Alabama, all at 0.41%.

Insights on Tax Bills by County

The average property tax bills illustrate a similar disparity. In fact, New Jersey holds the highest average tax bill for single-family homes at $10,135, significantly higher than West Virginia’s lowest average of $1,027. Other states following New Jersey in terms of high tax bills include Connecticut ($8,402), and New Hampshire ($7,723).

Urban Areas with Notable Tax Rates

Within the metropolitan statistical areas, a marked trend is noted, with 16 of the top 25 highest effective tax rates mostly found in the Midwest, primarily attributed to Illinois cities like Rockford (2.06%) and Chicago (1.91%). Meanwhile, areas like Salisbury, MD (0.29%) showcased some of the lowest effective rates.

Metro Areas Seeing Significant Tax Bill Growth

The year also saw a significant number of metropolitan areas (157 out of 217 analyzed) report increases in property tax bills that were above the national average of 3%. The standout increases were observed in Raleigh, NC (21.1%), Honolulu, HI (17.2%), and New Orleans, LA (16%). Conversely, cities like Charlotte, NC, and Atlanta, GA reported decreases in tax bills, highlighting varying local economic conditions.

Average Tax Bills in Large Counties

Among counties with at least 10,000 single-family homes, 19 counties reported average tax bills exceeding $10,000. Bastrop County, TX leads with a staggering average bill of $28,297.

Conclusion: A Year of Changes Ahead

As homeowners look towards 2025, it’s evident that property taxes will continue to be a topic of focus, with wide-ranging implications based on regional economic conditions, government budgets, and evolving housing markets. The report serves not just to inform but to prepare homeowners for the potential financial impacts in the year ahead.

About ATTOM

ATTOM is a data powerhouse, providing extensive analysis and insights into the property landscape across the U.S. Understanding property values and taxes has never been more critical for homeowners and investors alike, and ATTOM remains at the forefront of delivering this invaluable information.

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