Homeowners Face Rising Costs
Property taxes are rising across the country, but some states are seeing sharper increases than others. Your next tax statement might surprise you if you live in one of these states.
Florida
A 38% jump in median property taxes has left Florida homeowners struggling with higher bills. Rapid home appreciation in Miami, Tampa, and Orlando has triggered reassessments, which has increased taxable values. While the homestead exemption helps some, caps on tax increases apply only to primary residences.
Florida (Cont.)
This has left investment property owners and new buyers vulnerable to steep hikes. Many property owners are experiencing increases of hundreds or even thousands of dollars in their yearly tax payments, with no signs of relief in sight. It’s about to get worse, for sure.
Texas
Texas may have no state income tax, but that doesn’t mean homeowners get a break. With a 1.68% average property tax rate, local governments rely heavily on property levies to fund public education, emergency services, and infrastructure. Harris County is one of the locations with the highest rates.
i_am_jim, CC BY-SA 3.0, Wikimedia Commons
Texas (Cont.)
The residents in Houston suburbs like Pearland and Katy have faced double-digit percentage increases in their tax bills over the past five years. Rising home values and school district tax rates have contributed to these sharp hikes.
Grguy2011, CC BY-SA 3.0,Wikimedia Commons
Colorado
Homeowners in Colorado are experiencing increased property tax burdens due to rising home values. Colorado's average effective property tax rate is around 0.49%, with Pueblo County at 0.54% and Boulder County at 0.53%. Higher home values are pushing up tax bills.
Billy Hathorn, CC BY-SA 3.0, Wikimedia Commons
Colorado (Cont.)
In Denver, the median home value is $540,789 (Zillow) as of January 2025, while many residents struggle with affordability. Colorado has enacted bipartisan property tax relief measures, including a recent reduction averaging $233 for Denver homeowners in 2025. However, these efforts provide only modest relief.
North Carolina
Charlotte homeowners saw property assessments surge by an average of 51% in 2023, leading to significant tax increases. Residential properties experienced a 58% median rise, while commercial properties increased by 41%. Many homeowners appeal assessments or adjust budgets to cover unexpectedly high tax bills.
Grindstone Media Grp, Adobe Stock
North Carolina (Cont.)
Mecklenburg County’s revaluation hit hardest in rapidly growing areas, leaving some longtime homeowners struggling with affordability. While appeals are available through the County Assessor’s Office, the burden remains high for many. Residents continue voicing concerns over property tax fairness amid soaring real estate values.
brandon walker, CC0, Wikimedia Commons
Indiana
Indiana homeowners in cities like Fishers, Carmel, and Indianapolis have experienced significant property tax increases in recent years. For instance, as of October 2024, according to Market Watch, in Indianapolis, property tax bills have risen by nearly 67% since 2019, one of the highest jumps in the nation.
Indiana (Cont.)
This surge is attributed to rising property values and increased funding for local services, including schools. Even rural areas are not exempt; farmland property taxes have escalated due to higher base rates, with a 27% increase noted in 2024.
Georgia
The Associated Press reported that between 2018 and 2023, Georgia's total assessed property values surged nearly 61%, leading to a 44% increase in statewide property tax collections. This sharp rise has strained many middle-class families as their tax obligations outpace income growth.
Georgia (Cont.)
In response, numerous homeowners have filed appeals against their assessments. However, success rates remain low, and this offers limited relief. To address concerns, Georgia voters approved a measure to cap annual increases in a home's taxable value to the inflation rate. Despite this, many school districts are opting out.
Ggia, CC BY-SA 3.0, Wikimedia Commons
Utah
In Salt Lake City and Provo, housing demand has driven higher property tax bills. Even with Utah's average effective property tax rate of 0.55%, according to Smart Asset, rising home values have led to increased assessments, and this results in higher tax obligations for homeowners.
Utah (Cont.)
Some lawmakers have proposed income tax cuts and constitutional amendments to ease rising property taxes, but relief remains uncertain. As Utah’s population expands, higher valuations keep pushing tax bills upward. Many homeowners worry these increases will continue without significant legislative intervention.
Michigan
Despite Michigan’s Proposal A, which caps annual tax increases, new homebuyers face immediate reassessments. Property transfers uncap taxable values, often resulting in steep tax hikes. In Detroit, 2024, residential values jumped 19%, hitting buyers with unexpectedly high bills despite constitutional protections.
Michigan (Cont.)
Many Michigan homeowners struggle with rising tax burdens, especially in Grand Rapids and Detroit, where housing demand has surged. While appeals are possible, relief is rare. Programs like HOPE offer exemptions based on household income, but most homeowners see annual tax bills rise steadily.
WMrapids, CC0, Wikimedia Commons
New York
According to Tax-Rates.org, Westchester County homeowners face substantial property tax burdens, with a median annual payment of $9,003 for a median home value of $556,900. This equates to an effective tax rate of 1.62%, ranking Westchester among the highest in the nation.
Omoo, CC BY 3.0, Wikimedia Commons
New York (Cont.)
While property tax appeals are an option, the process can be complex and challenging. Homeowners often find it difficult to achieve reductions, which leads to persistent high tax obligations. The result? Rising living costs for sure.
Ivan2010, CC BY-SA 4.0, Wikimedia Commons
Illinois
Illinois has one of the highest rates in the US, with Rocket Morgage estimating the average to be 2.08%. In DuPage County, homeowners pay a $5,417 median annual tax on a $316,900 median home value, equating to an effective tax rate of 1.71% (Tax-Rates.Org).
Sea Cow, CC BY-SA 4.0, Wikimedia Commons
Illinois (Cont.)
The high property tax rates have been a significant concern for residents, leading to discussions about tax reform (2024) and the need for a more balanced tax system. In Cook County, elected leaders are examining how the property tax system affects taxpayers and the communities that rely on these funds.
Andrew Horne, CC BY 2.0, Wikimedia Commons
New Jersey
New Jersey homeowners face the nation's highest property tax burden, with an effective rate of 2.33% (Smart Asset). The average property tax in Essex County bill is $13,448 for a home valued at $428,538 in 2023. These escalating costs are prompting many to relocate.
Jim.henderson, CC0, Wikimedia Commons
New Jersey (Cont.)
Relief programs like Stay NJ by the NJ Treasury offer property tax benefits to eligible homeowners aged 65 and older with an annual income below $500,000. Qualifying can be challenging due to such specific requirements. Consequently, many residents continue to bear substantial tax burdens despite available assistance programs.
King of Hearts, CC BY-SA 4.0, Wikimedia Commons
Connecticut
Connecticut mandates property reassessments every five years to ensure equitable valuations. Homeowners in cities like Greenwich and Stamford often experience significant tax increases following these reassessments, reflecting rising property values.
John9474, CC BY-SA 4.0, Wikimedia Commons
Connecticut (Cont.)
With an effective property tax rate of 1.78%, Connecticut ranks among the most expensive states for property owners. Even with available tax relief programs, many residents find that their property tax obligations continue to escalate over time.
Massachusetts
From the fiscal year 2022 to 2023, Massachusetts’s median residential tax rate fell 6.7%, from $14.56 to $13.58 per $1,000 of assessed value. However, rising home prices in Boston and Cambridge still pushed tax bills higher. Cambridge’s property tax levy jumped 8.3% in FY24.
Sharon Hahn Darlin, CC BY 2.0, Wikimedia Commons
Massachusetts (Cont.)
Despite tax relief programs, homeowners face growing costs as valuations climb. Property taxes have consistently risen, and without meaningful reform, expenses will likely continue increasing. Many residents struggle with affordability, especially in high-demand areas where property values keep surging.
Vermont
In 2023, Vermont's Department of Taxes projected an 18.5% increase in property tax rates, primarily due to rising school budgets. This significant hike has left homeowners in cities like Burlington and Montpelier anticipating higher payments in 2024.
Vermont (Cont.)
Lawmakers have debated relief measures, but no clear solutions have emerged. Consequently, property owners are preparing for escalating costs, with many expressing concern over the lack of effective interventions to address the increasing tax burden.
Nebraska
Nebraska's effective property tax rate is 1.44%, ranking it among the higher-taxed states. In Douglas County, the median property tax is $3,997 annually, based on a median home value of $206,800, resulting in an effective tax rate of 1.96%, according to OwnWell’s calculations.
Nebraska (Cont.)
Despite legislative efforts like the passage of Legislative Bill 34 in 2024, which allocated $750 million in new tax relief, many homeowners continue to face rising assessments and increasing property tax bills each year for sure. Brace yourselves.
Collinulness, CC BY-SA 3.0, Wikimedia Commons
Wisconsin
As per Smart Asset, Wisconsin's effective property tax rate is 1.59%, placing a significant burden on homeowners, especially in Milwaukee and Madison. In 2023, in Milwaukee County, the effective property tax rate was 1.81%, with a median tax payment of $4,210 on a home valued at $232,500.
Wisconsin (Cont.)
School districts have approved record-high budgets, leading to increased property tax bills. In Milwaukee, the school district's property tax levy climbed 29.5% in December 2024 following a voter-approved referendum back in April. Consequently, many property owners face higher bills, even if their home values haven't changed significantly.
Unknown author, CC BY-SA 3.0, Wikimedia Commons
Pennsylvania
Pennsylvania's effective property tax rate is 1.26%, which puts a lot of financial burden on homeowners, especially retirees in Philadelphia and Pittsburgh. Many seniors find that their property tax payments exceed their monthly Social Security benefits, leading some to consider selling or downsizing their homes.
Pennsylvania (Cont.)
Starting in 2025, the Property Tax/Rent Rebate Program’s income limit will rise to $46,520 and adjust with the cost of living—rebates from $380 to $1,000 based on income. Additional relief is available in some cities. Ensure you check local programs for more tax assistance.
Ben Schumin, USA, CC BY-SA 2.0, Wikimedia Commons
Ohio
Ohio's effective property tax rate is 1.43%, with higher rates in counties like Cuyahoga, where it reaches 2.18%, as per Smart Asset. This has led to a surge in appeals from homeowners in Columbus and Cincinnati, who believe their properties are overvalued, resulting in unexpectedly high tax bills.
Nicholas J. Klein, Adobe Stock
Ohio (Cont.)
The appeal process involves filing a complaint with the county Board of Revision from January 1 to March 31. Homeowners must provide evidence, such as recent appraisals or sales data, to support their claims. Despite the increase in appeals, achieving a reduction can be challenging.
Jsjessee, CC BY-SA 2.0, Wikimedia Commons
Iowa
Iowa’s 1.40% effective property tax rate is burdening agricultural landowners, with farmland assessments surging. In Polk County in 2023, based on a WQAD news article, assessments climbed 36% in 2023, while in Ames, values jumped 40%. These increases make it harder for farmers to sustain profitability.
Iowahwyman, CC BY-SA 3.0, Wikimedia Commons
Iowa (Cont.)
Rising farmland taxes stem from increasing market valuations. Iowa’s rollback rate aims to limit drastic tax hikes, but relief remains uncertain. Many farmers fear ongoing valuation spikes will outpace protective measures, further tightening margins in an already challenging industry.
Kepper66, CC BY-SA 3.0, Wikimedia Commons
California
California's 0.74% (Tax-Rates.Org) effective property tax rate appears low, but additional levies like Mello-Roos fees and parcel taxes significantly increase homeowner costs. These charges fund local services and infrastructure, adding hundreds or thousands of dollars annually to property tax bills.
Newport Coast Media, Adobe Stock
California (Cont.)
In San Francisco and Los Angeles, residents face some of the nation's highest combined property-related expenses. Beyond standard property taxes, local measures impose extra fees, further elevating the financial burden on homeowners in these metropolitan areas.
Tennessee
Tennessee's 0.48% effective property tax rate is among the nation’s lowest on owner-occupied properties, but rapid growth in Nashville and Chattanooga has driven assessments higher. In Davidson County, reappraisals every four years adjust for market changes, leading to unexpected tax increases for many homeowners.
Tennessee (Cont.)
Despite low rates, rising property values have pushed tax bills higher than expected. Homeowners face increasing assessments, especially in booming metro areas. Without intervention, taxes will continue climbing as demand for housing and real estate values surge.
Minnesota
Minnesota's effective property tax rate is 0.98% on owner-occupied housing value, with homeowners in Minneapolis and St. Paul facing rising tax burdens. In 2024, Minneapolis proposed an 8.1% property tax increase, the largest in 16 years, while St. Paul set a 7.9% maximum levy increase.
Minnesota (Cont.)
These hikes often outpace property value appreciation and frustrate residents who expect stable housing costs. Despite efforts to manage expenses, many find their property taxes increasing faster than their home's market value. The result? Financial challenges.
.jpg){kind=link}
.jpg){kind=link}