Partnership for New York City president and CEO Steve Fulop discusses the city’s budget deficit and Mayor Zohran Mamdani’s proposed property tax increase during “The Claman Countdown.”
American homeowners across the country are feeling the pressure from above property taxeswith new data showing that property tax burdens increased last year.
Data from analytics firm ATTOM showed that the effective tax rate for single-family homes was 0.9% in 2025, up from 0.86% in 2024 and the highest level since 2020, when the national effective tax rate was 1.1%, according to a Realtor.com report.
It also found that although the assessed value for a single-family home fell 1.7% year-on-year in 2025, this was still one of the highest values on record for single-family home values, as 2024 values were higher than those that preceded it.
“Property taxes in 2025 show that tax bills reflect more than just home values,” said Rob Barber, CEO of ATTOM. “Even with a slight decline in prices, higher tax bills combined with falling house prices led to an increase in effective tax rates, underscoring the role of local government costs and changing tax policies.”
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Homes in the Queens neighborhood of New York City. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
The effective tax rate for property taxes varies by state, and the report shows that the states with the highest effective tax rates for single-family homes tend to be in the Northeast.
New Jersey led the way with an effective tax rate of 1.58% and a average house price of $544,450. It was followed by Vermont, which had an effective tax rate of 1.4%, and Connecticut at 1.36%, both with a median home price of about $500,000.
The effective tax rate in New Hampshire was 1.29%, based on a median home price of $587,450, while New York had an effective tax rate of 1.23% and a median home price of $672,000.
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Some states with lower average home prices also faced higher relative property tax burdens. (Angus Mordant/Bloomberg via Getty Images)
Several states with lower average home prices also made the rankings for the highest effective property tax rates. Ohios was 1.32%, while Iowa at 1.25%, Pennsylvania at 1.24% and Nebraska at 1.24% rounded out the top 10 with median home prices ranging from $272,000 to $345,000.
States with the lowest effective tax rates tended to have notable differences in terms of the average home price for a given state.
Hawaii had the lowest effective tax rate of 0.33% with a median home value of $747,545, while other western states had similarly low effective tax rates with higher home prices.
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States in the West generally had lower relative property tax burdens. (Saul Loeb/AFP via Getty Images.)
Idaho (0.39%), Wyoming (0.4%), Arizona (0.43%), Utah (0.48%) and Nevada (0.52%) were among the states with the lightest property tax burdens and had average home prices ranging between $444,000 and $575,000.
Two southern states with lower relative property tax costs include Alabama with an effective tax rate of 0.43% and a median home price of $333,675, while Tennessee (0.5%) with a median of $425,250.
Delaware’s effective tax rate of 0.48% and its location in the Northeast made it a regional outlier among states with lower property tax burdens, with a median home price of just under $500,000.
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West Virginia also had an effective tax rate of 0.48% with the lowest median home price of $249,750.
