Published by REALTOR Magazine | April 14, 2023
Real estate taxes have been on the rise over the last few years.
Property taxes can make up a sizable portion of homeowners’ budgets, particularly in certain markets. While owners in some locations pay less than $1,000 a year, that bill can top $9,000 in other areas. In general, property taxes are increasing nationwide, doubling in some markets between 2021 and 2022, according to a recent study from ATTOM Data Solutions, a real estate research firm.
The average tax amount on single-family homes nationwide jumped by 3% in 2022, averaging $3,901 annually. That follows a 1.8% increase the previous year, according to the report.
“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 and tax bases,” says ATTOM CEO Rob Barber. “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.”
That said, effective rates—the average annual property tax provided as a percentage of the estimated market value of the home—actually decreased nationwide in 2022. However, total taxes that homeowners are paying are on the rise because home values have surged faster than taxes across the country, ATTOM’s research notes.
Property taxes can make up a sizable portion of homeowners’ budgets, particularly in certain markets. While owners in some locations pay less than $1,000 a year, that bill can top $9,000 in other areas. In general, property taxes are increasing nationwide,doubling in some markets between 2021 and 2022, according to a recent study from ATTOM Data Solutions, a real estate research firm.
The average tax amount on single-family homes nationwide jumped by 3% in 2022, averaging $3,901 annually. That follows a 1.8% increase the previous year, according to the report.
The median amount paid in property taxes in some locales has surged since 2019. For example, property taxes in Tampa, Fla., rose by 18% from 2019 to 2021, the highest percentage-point jump in the country, according to a report from LendingTree.
Homeowners can deduct a certain amount of state and local property taxes; it’s capped at $10,000, or $5,000 for married taxpayers filing separately, LendingTree notes. Homeowners may be able to deduct property taxes and mortgage interest on their federal tax return, but they will need to itemize their return to do so.
