Rising home values have pushed up many Americans’ net worth in recent years. But there is often a downside: higher property taxes.
The average tax bill for a single-family home in 2025 was more than $4,400, up 3 percent from the year before, according to data from Attom, a provider of real estate data.
Property taxes, a major source of revenue for local governments to fund schools and services, are tied to home values and tend to rise when homes become more expensive. At the same time, local governments, faced with higher inflation and the end of federal pandemic-era funding, are sometimes turning to higher tax rates to fund their budgets.
“The cost of public services has gone up,” said Thomas Brosy, a senior research associate at the Tax Policy Center, a nonpartisan think tank.
Bills vary widely by location, however, and can be much higher in some areas. States in the Northeast generally had the fattest property bills because of a combination of high tax rates and home values, the analysis found. New Jersey had the highest average, at $10,499, followed by Connecticut ($8,901), New Hampshire ($8,174), Massachusetts ($7,904) and New York ($7,732).
Some cities and counties had much higher bills. In Westchester County, outside New York City, the average was $18,386, and in Marin County, Calif., near San Francisco, it was $16,745.
States with the lowest average tax bills were concentrated in the South. The lowest was West Virginia, at $1,081.
Nationally, the effective tax rate ticked up to 0.9 percent, from 0.86 percent in 2024, and was the highest since 2020, the company found.
What’s driving the increase in property taxes?
Property tax bills are based on the assessed value of a home, or a percentage of the full value, multiplied by a tax rate often known as a millage rate. (The taxes are managed and collected locally, but states generally set the rules governing them.)
Home values have been rising, particularly since the Covid-19 pandemic, because of a variety of factors, including a shortage of supply. Unless the authorities reduce tax rates or assessments to compensate for rising values, property tax bills increase as well. Some states have passed laws limiting increases.
Property taxes are increasing as people face also higher costs for gas and groceries along with other costs of homeownership, like insurance. At least a dozen states — including Florida, Texas and North Dakota — have cut back or are even considering eliminating property taxes.
“Tax bills have risen dramatically,” said Jared Walczak, a senior fellow at the Tax Foundation, a nonprofit that generally favors lower taxes.
People may not realize how much they pay in income tax because the money is withheld from their paychecks, Mr. Walczak said, and sales taxes are typically paid in smaller increments over time. But homeowners are usually very aware of how much they pay in property taxes, he said, whether they send the money directly to the local government or it’s part of their mortgage payment. If tax bills go up but people don’t perceive the level of services changing to a similar degree, he said, that creates “substantial discontent.”
It is challenging for cities and counties to reduce property taxes, however, because the taxes generate about 70 percent of local tax revenue, according to the Tax Foundation, and are the main way those governments pay for services like schools, police and fire departments, and road maintenance. While some states don’t levy income or sales taxes, they all have property taxes, and curtailing them leaves a gap in local finances.
Can I appeal my property tax bill?
Yes, but you should do some research to back up your challenge.
Homeowners should first check that the bill’s calculations are correct, said Pete Sepp, president of the National Taxpayers Union, a nonprofit group that says it supports a “simple and fair tax system.” “That’s not always the case,” he said.
Typically, communities send out an assessment notice each year, often in the spring or early summer, outlining your expected bill. There’s usually a relatively short period to appeal — 30 or 60 days is common — so don’t wait if you think your assessment is high.
Confirm the accuracy of the assessment itself by checking the official property “card,” which has details of the home, like the number of bedrooms, Mr. Sepp said. Many governments make the information available online, he said, but in some smaller towns you may need to visit the assessor’s office to check a physical document.
If you find an obvious error — say, you’re being assessed for a house with three bathrooms, but yours has two — a call to the assessor’s office may result in a quick correction.
If there are no blatant mistakes, try to check the value of homes in your neighborhood to see if your property is being valued similarly. County assessors’ offices may list recent home sales online. Or you can check “sold” listings on commercial sites like Zillow, Redfin and Realtor.com. (Be sure to use actual sales data rather than estimates.)
“There may be reasons why yours should be assessed less,” Mr. Sepp said. Maybe your home has an older roof, for instance, or an unappealing view. If you think your valuation is unfairly high, you can pursue an appeal.
Some communities let you appeal by mail, while others may require you to present your case at a hearing. “It’s like arguing against a traffic ticket,” Mr. Sepp said. His group offers an online checklist for mounting an appeal.
Are special exemptions available?
Often, exemptions or lower rates are available to certain homeowners to lessen the burden of property taxes, so make sure your bill reflects any that apply to you. They can include “homestead” exemptions if the home is your primary residence or reduced rates for older people and disabled service members.
Some states offer so-called circuit breakers, a type of tax credit or rebate available to people whose property taxes are high relative to their incomes. The credits help keep property taxes affordable so they don’t hurt a family’s capacity to pay for necessities like food, utilities and car loans.
What if I don’t have time to research an appeal?
If you aren’t the do-it-yourself type, you can hire someone, such as a local real estate lawyer or appraiser, to do the work for you. Some companies handle the appeal with no charge upfront, You pay if they are successful, and they take part of the savings as their fee.
Joel Berner, senior economist with Realtor.com, said he had used a service called Ownwell to appeal the assessment of his home in Austin, Texas. The company’s representative attended an appeal hearing on his behalf, he said, and got his tax bill reduced by $600. Mr. Berner ended up saving $450 after the firm’s 25 percent fee, $150.
Can I deduct my property tax bill on my income tax return?
Yes, if you itemize deductions on your federal return — meaning you list them separately, rather than taking the standard deduction. You can claim a deduction for state and local taxes, including property taxes.
Tax legislation in 2017 created a cap of $10,000 on this so-called SALT deduction, but last summer’s tax and spending bill increased the cap to $40,000 for the tax years 2025 through 2029. (The full deduction decreases gradually for people with higher incomes, and the $10,000 ceiling remains in place for people with income of $600,000 or higher.)
After five years, the cap is scheduled to return to $10,000.
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