Taxes On Single-Family Homes Up Nearly 4% Across U.S.

Taxes levied on single-family homes last year increased twice as fast as in 2021, according to a 2022 property tax analysis of 87 million single-family homes by real estate data curator ATTOM.

Taxes on single-family homes last year totaled $339.8 billion — up 3.6% from $328 billion in 2021, according to ATTOM’s report.

The increase was more than double the 1.6% rise in 2021, although less than the 5.4% increase the previous year. The average tax on single-family homes in the U.S. increased 3% in 2022 to $3,901, after rising 1.8% the previous year.

“Property taxes continued their never-ending climb last year, with wide disparities continuing from one area of the country to another, connected to varying costs, services and tax bases,” ATTOM CEO Rob Barber said. “But on balance, the latest increase nationwide again was modest.”

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The report analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county levels as well as estimated market values of single-family homes calculated using an automated valuation model. The effective tax rate was the average annual property tax expressed as a percentage of the average estimated market values of the homes in each geographic area.

“This year, local governments and school systems will face even greater challenges keeping taxes in check, given rising inflation rates and a growing number of commercial properties that could be eligible for tax reductions after suffering a surge of vacancies during the pandemic,” Barber said.

States with the highest effective property tax rates in 2022 were New Jersey, 1.79%; Illinois, 1.78%; Connecticut, 1.57%; New York, 1.26%; and Nebraska, 1.36%.

States with the lowest effective tax rates in 2022 were Hawaii, 0.3%; Alabama, 0.37%; Arizona, 0.39%; Colorado, 0.4%; South Carolina, 0.46%; and West Virginia, 0.42%.

The five top and bottom states were the same in both 2021 and 2022.

“Huge gaps in average tax bills around the U.S. remain in place,” Barber said. “Those disparities are heavily connected to differences in local government and school services, public employee wages, economies of scale between large and smaller towns and the amount of commercial properties that help shoulder the local tax burden.”

“Depending on what prospective buyers want in a community and its school system, the gaps can have a big impact on how easy or hard it is to sell a home.”

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