Rising Property Taxes: What You Need to Know
A “Sold” sign sits in front of a newly purchased home as property taxes continue to climb across major US metros. (Photo by Steve Pfost/Newsday RM via Getty Images)
LOS ANGELES – Property taxes are going up—and not just a little. A new LendingTree study shows that median property taxes rose in every major US metro between 2021 and 2023, with the national average increase hitting 10.4%.
Homeowners in some cities saw far steeper spikes. In Tampa, Florida, for example, property taxes jumped by a whopping 23.3%, the most of any metro. Indianapolis and Dallas weren’t far behind. The study, based on Census Bureau data, shows the rising burden for homeowners during a time when inflation and cost-of-living pressures have already strained many budgets.
Where Did Property Taxes Rise the Most?
By the numbers:
The top 10 metros with the steepest increases in median property taxes between 2021 and 2023 include:
- Tampa, FL: +23.3%
- Indianapolis, IN: +19.8%
- Dallas, TX: +19.0%
- Jacksonville, FL: +18.7%
- Atlanta, GA and Miami, FL: +18.6%
- Seattle, WA: +18.4%
- San Antonio, TX: +18.2%
- San Diego, CA: +18.0%
- Charlotte, NC: +17.6%
At the other end of the spectrum, Pittsburgh, Philadelphia, and Milwaukee saw smaller increases—each under 8.5%.
How Much Are People Actually Paying?
Big picture view:
Nationally, the median property tax bill in 2023 was $2,969, or about $247 per month. However, there’s a sharp divide between homeowners with and without mortgages:
- With mortgage: $3,343 median
- Without mortgage: $2,474 median
That $869 difference isn’t just a number—it’s money that could be going toward bills or savings. Matt Schulz, chief consumer finance analyst at LendingTree, said it adds up: “It may not seem like an earth-shattering amount of money, but that equates to about $70 to $75 a month that can’t go toward paying bills or reaching other financial goals… It’s an even bigger deal when you also have a mortgage.”
Where Do People Pay the Most—and the Least?
Local perspective
The highest median property taxes were found in:
- New York, NY: $9,937
- San Jose, CA: $9,554
- San Francisco, CA: $8,156
Meanwhile, the lowest were in:
- Birmingham, AL: $1,091
- Memphis, TN: $1,856
- Louisville, KY: $1,912
Homeowners in Birmingham pay 41.2% less than those in Memphis—even though both are among the least expensive.
Which Cities Have the Lowest Tax Rates?
By the numbers:
LendingTree also looked at effective property tax rates, which measure taxes as a percentage of home value. The metros with the lowest rates:
- Birmingham, AL: 0.48%
- Phoenix, AZ: 0.48%
- Las Vegas, NV and Denver, CO: 0.50%
In contrast, the highest effective tax rates were:
- Buffalo, NY: 2.11%
- Chicago, IL: 2.08%
- Cleveland, OH: 1.74%
What Can Homeowners Do About Rising Property Taxes?
What you can do:
LendingTree’s experts offered several tips:
- Use a high-yield savings account to set aside funds for your property tax bill and earn interest in the meantime.
- Check for local exemptions, such as age-based or homestead deductions.
- Appeal your property tax assessment if you believe your home is overvalued.
Conclusion
Rising property taxes can be a significant burden for homeowners, especially during times of inflation and cost-of-living pressures. By understanding where property taxes are rising the most and how much people are actually paying, homeowners can better plan and budget for their property tax bills. Additionally, by taking advantage of local exemptions, appealing property tax assessments, and using high-yield savings accounts, homeowners can reduce their property tax burden and keep more of their hard-earned money.
Frequently Asked Questions
Q: Why are property taxes rising?
A: Property taxes are rising due to a combination of factors, including increasing property values, rising costs of living, and growing demand for housing.
Q: How can I reduce my property tax bill?
A: You can reduce your property tax bill by taking advantage of local exemptions, appealing your property tax assessment, and using a high-yield savings account to set aside funds for your property tax bill.
Q: What is the average property tax bill in the US?
A: The average property tax bill in the US is $2,969, or about $247 per month.
Q: Which cities have the highest property taxes?
A: The cities with the highest property taxes are New York, NY, San Jose, CA, and San Francisco, CA.
Q: Which cities have the lowest property taxes?
A: The cities with the lowest property taxes are Birmingham, AL, Memphis, TN, and Louisville, KY.
