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The amount of property taxes a homeowner pays depends on which side of the city, district, or county line they live on. According to the US Census Bureau, the typical American pays property taxes of 1.02% of the home’s value each year.
Property taxes across the country have been increasing since before the pandemic. Median annual property taxes increased by nearly 25% from 2019 to 2023, according to an analysis by real estate industry analysis firm CoreLogic.
Property taxes fund public schools and also pay for other programs such as infrastructure repairs and police departments. A portion of your monthly mortgage payment goes toward property taxes, so if you’re on a tight budget, higher property taxes can make it harder to save.
Property taxes vary by state
Property taxes are very localized, and similar homes in a neighborhood can have higher or lower tax burdens depending on their location. Some states impose property taxes, but in most cases these taxes are levied at the county, city, or district level.
New Jersey had the highest median property tax amount for single-family homes in 2023. The top five states with the highest median property taxes were Connecticut, New York, New Hampshire, and Massachusetts. Homeowners in West Virginia pay an average of about $694 per year in property taxes.
Differences in property taxes by state reflect differences in home prices and property tax rates in each state.
Find out how much homeowners in your state pay in property taxes.
“States calculate property taxes differently from municipality to municipality because home prices and tax rates can vary widely by region,” Yanlin Mayer, chief economist at CoreLogic, wrote last month.
“For example, in West Virginia, average annual property taxes range from about $210 in McDowell and Webster counties to about $1,856 in Jefferson County,” Mayer wrote. “In New Jersey, average property taxes in 2023 ranged from $4,590 in Cumberland County to approximately $11,350 in Essex and Bergen counties.”
These counties have the highest property taxes
The average homeowner in Westchester County, New York, paid the most in property taxes last year, with a median of $15,373, according to a separate CoreLogic analysis.
In 2023, 13 of the top 15 counties with the highest property tax bills were in the greater New York City area, including surrounding cities and suburbs.
Find out how much a home is worth in your county
For nearly two-thirds of American homeowners, location is a major factor in determining the value of a home. Home ownership is a major financial asset for many households, and knowing the value of a home can help families make buying or selling decisions.
Find the median home value for each U.S. county.
Contributor: Janna Herron
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