Property Tax Squeeze: Average U.S. Homeowner Bill Rose 3% in 2025

There may be a property tax revolt surging across the U.S., but the reality is that most states still collect property taxes—and they've risen across the board.

Nationwide, the effective tax rate for single-family homes in 2025 was 0.9%, up from 0.86% in 2024 and the highest since 2020, when the national effective tax rate was 1.1%, according to the latest property tax report from data analytics firm ATTOM.

The average single-family home, now valued at $494,231, generated $4,427 in taxes, a 3% increase over 2024.

And despite the estimated value for a single-family home in 2025 being down 1.7% year over year, 2024's values were still higher than the years prior, making 2025’s average estimated value for single-family homes one of the highest recorded.

"Property taxes in 2025 demonstrate that tax bills reflect more than just home values," said Rob Barber, CEO of 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."

Which states are taxed the most—and least?

Where you live can make a big difference in your tax bill.

The states with the highest effective tax rates were (in order): Illinois, New Jersey, Vermont, Connecticut, and Ohio.

The lowest were: Hawaii, Idaho, Wyoming, Arizona, and Alabama.

With property taxes tied to home valuations, it's no surprise that pricey Northeast states had the highest invoices.

New Jersey led the list ($10,499), followed by Connecticut ($8,901), New Hampshire ($8,174), Massachusetts ($7,904), and New York ($7,732).

But real estate experts say the big bills aren't bothering buyers—at least those with means.

"Buyers are consistently drawn to Boston because of its world-class hospitals, universities, and overall quality of life," George Sarkis of Douglas Elliman tells Realtor.com®. "For many buyers, especially those relocating for work or education, the access to those institutions justifies the higher tax environment, and we're not seeing a meaningful exodus because of it."

Jessica Chestler of Douglas Elliman in NYC echoes the sentiment. "We’re not seeing property taxes deter serious buyers in New York City right now," she tells Realtor.com. "For buyers, especially at the higher end, the focus is on lifestyle and opportunity. They understand what New York offers and are willing to pay for it, so property taxes are rarely the deciding factor."

"Many buyers understand that higher tax bills can come with trade-offs they value, whether that is access to strong public services, desirable neighborhoods, or other long-term benefits tied to the location," agrees Michael Reisor of Compass in NYC.

But he says that doesn't mean buyers aren't looking closely at those numbers.

"When buyers are evaluating a condo, co-op, or townhome purchase, they are absolutely paying attention to carrying costs and thinking carefully about what those obligations will look like over time," he says.

For lower property taxes overall, head to the South. The states with the lowest average bills were West Virginia ( $1,081), Alabama ($1,284), Arkansas ($1,387), Mississippi ($1,563), and Louisiana ($1,639).

The Midwest didn't escape higher taxation. It may surprise some that Nebraska has a slightly higher effective tax rate than New York. But given that Nebraska's homes are generally much cheaper, your tax bill is still likely to be a lot less there.

Then, there is Illinois. While valuations in the Prairie State are much lower on average than in Northeast states, this Midwest state has the highest effective tax rate at 1.84%.

So it's no shocker that Illinois is one of the states revolting.

In October 2025, Republican state Sen. Neil Anderson introduced SB 1862 to create a homestead exemption that eliminates property taxes for homeowners who have paid property taxes for at least 30 years.

Highest taxed states:

Illinois

Effective tax rate: 1.84%

Median home price: $299,450

New Jersey

Effective tax rate: 1.58%

Median home price: $544,450

Vermont

Effective tax rate: 1.4%

Median home price: $495,000

Connecticut

Effective tax rate: 1.36%

Median home price: $507,500

Ohio

Effective tax rate: 1.32%

Median home price: $272,450

New Hampshire 

Effective tax rate: 1.29%

Median home price: $587,450

Iowa

Effective tax rate: 1.25%

Median home price: $279,000

Pennsylvania

Effective tax rate: 1.24%

Median home price: $300,000

Nebraska

Effective tax rate: 1.24%

Median home price: $345,000

New York

Effective tax rate: 1.23%

Median home price: $672,000

Lowest taxed states:

Hawaii

Effective tax rate: 0.33%

Median home price: $747,545

Idaho

Effective tax rate: 0.39%

Median home price: $575,000

Wyoming

Effective tax rate: 0.40%

Median home price: $444,500

Arizona

Effective tax rate: 0.43%

Median home price: $475,000

Alabama

Effective tax rate: 0.43%

Median home price: $333,675

Utah

Effective tax rate: 0.45%

Median home price: $575,000

Delaware

Effective tax rate: 0.48%

Median home price: $499,450

West Virginia 

Effective tax rate: 0.48%

Median home price: $249,750

Tennessee

Effective tax rate: 0.50%

Median home price: $425,250

Nevada

Effective tax rate: 0.52%

Median home price: $485,000