Property taxes levied on U.S. single-family homes totaled $363.3 billion in 2023, up 6.9% from $339.8 billion in 2022.
According to data from ATTOM, the increase was almost double the 3.6% growth rate in 2022 and was the largest in the past five years. ATTOM also noted the average tax on single-family homes in the U.S. increased last year by 4.1% to $4,062, after going up 3% the previous year.
The latest average tax resulted in an effective tax rate nationwide of 0.87%, up slightly from 0.83% in 2022, for the first increase since 2017.
The top 10 states with the highest effective property tax rates in 2023 were all in the Northeast and Midwest: Illinois (1.88%), New Jersey (1.64%), Connecticut (1.54%), New York (1.46%), Nebraska (1.46%), Ohio (1.37%), Pennsylvania (1.33%), Vermont (1.29%), Kansas (1.26%) and New Hampshire (1.25%).
The 10 states with the lowest effective property tax rates in 2023 were all in the South and West: Hawaii (0.31%), Arizona (0.41%), Alabama (0.42%), Delaware (0.43%), Tennessee (0.44%), Idaho (0.44%), Utah (0.45%), Nevada (0.48%), Colorado (0.48%) and West Virginia (0.49%).
“Property taxes took an unusually high turn upward last year, pushing effective rates up, while huge gaps in average tax bills between different parts of country remained in place,” said Rob Barber, CEO at ATTOM. “The tax increases were likely connected, at least in part, to inflationary pressures on the cost of operating local governments and schools, along with rising public employee wages and other major expenses.”
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