New data from analytics firm ATTOM reveals that American homeowners faced a higher property tax burden in 2025, even as single-family home values declined by 1.7% year over year. The effective property tax rate for single-family homes increased to 0.9% in 2025, up from 0.86% in 2024, marking the highest level since 2020 when the rate was 1.1% [1]. ATTOM CEO Rob Barber emphasized that property tax bills are influenced by more than just home values, noting that increased tax bills alongside declining home values led to a rise in effective tax rates, highlighting the impact of local government costs and shifting tax policies [1].
The report found significant variation in effective tax rates across states. New Jersey had the highest effective tax rate at 1.58% with a median home price of $544,450, followed by Vermont (1.4%, ~$500,000), Connecticut (1.36%, ~$500,000), New Hampshire (1.29%, $587,450), and New York (1.23%, $672,000) [1]. States with lower median home prices, such as Ohio (1.32%, $272,000-$345,000), Iowa (1.25%), Pennsylvania (1.24%), and Nebraska (1.24%), also ranked among the top ten for highest effective property tax rates [1].
Conversely, states with the lowest effective tax rates included Hawaii (0.33%, $747,545), Idaho (0.39%), Wyoming (0.4%), Arizona (0.43%), Utah (0.48%), and Nevada (0.52%), all with median home prices between $444,000 and $575,000 [1]. Southern states like Alabama (0.43%, $333,675) and Tennessee (0.5%, $425,250) also had relatively low property tax burdens. Delaware (0.48%, just under $500,000) was noted as a regional outlier in the Northeast, while West Virginia had a 0.48% effective tax rate and the lowest median home price at $249,750 [1].
The increase in property tax rates amid declining home values suggests that homeowners may face greater financial pressure, particularly in states with higher effective tax rates. The data underscores the complexity of property tax calculations, which are affected by local government spending and tax policy changes, rather than solely by property values [1].
CONCLUSION
The ATTOM data indicates that U.S. homeowners are experiencing rising property tax burdens despite a slight decrease in home values. This trend is particularly pronounced in states with high effective tax rates, suggesting ongoing financial challenges for property owners. The findings highlight the influence of local government costs and tax policies on property tax bills, with potential implications for housing affordability and market sentiment.