Introduction to Property Taxes
Property taxes are climbing in many parts of the country, but location remains a major factor in what homeowners pay.
Understanding Property Tax Trends
In 2024, the median U.S. property tax bill reached $3,500 — a 2.8% increase from the previous year — driven by rising home values and changes in local tax rates. Still, the amount homeowners owe can vary widely depending on the state, according to Realtor.com.
Factors Influencing Property Taxes
"Tax growth varies widely state to state, including some states where tax burdens are outpacing home price growth and others where property taxes are falling even as homes appreciate in value," Joel Berner, senior economist at Realtor.com, said in a statement. "Property taxes support important municipal services, police, firefighters, schools, courts, libraries, parks and recreation, emergency response, the pound, roads, and maybe many more services people might not realize are funded, like senior services, municipal airports, public health, possibly water, sewer, and trash collection," Bruce Ailion, an agent with Re/Max Town and County in Atlanta, told Realtor.com.
Real Estate Market Insights
Miami-based real estate investor Isaac Toledano, CEO of BH Group, shares with LiveNOW’s Josh Breslow that in the past few months, his company has signed multiple contracts with buyers from New York amid concern of a Mamdani administration. 
States with the Lowest Property Taxes
West Virginia homeowners pay a median of just $728 per year, the lowest in the nation. Meanwhile, New Jersey residents face the highest median property tax bill, averaging $9,413 annually, according to Realtor.com. The states with the lowest property taxes include:
- West Virginia — $728
- Alabama — $804
- Arkansas — $871
- Mississippi — $1,034
- South Carolina — $1,328
- Tennessee — $1,333
- Louisiana — $1,415
- Oklahoma — $1,481
- Kentucky — $1,551
- Michigan — $1,670
Impact of Property Taxes on Homeowners
Property taxes tend to reflect a home’s market value, according to Berner. The highest property tax burdens are found mostly in the Northeast, where both home prices and household incomes exceed national averages. In contrast, states with the lowest property tax bills typically have median home prices below the national median of $425,000 as of September 2025, Realtor.com reports.
Efforts to Reduce Property Tax Burden
While lower taxes can ease the financial strain on homeowners, they often come with a trade-off — fewer local services, according to Realtor.com. As property taxes climb, lawmakers in Florida, Illinois, Kansas, Ohio, Pennsylvania, and Texas are exploring ways to reduce the burden on homeowners. Montana has already implemented property tax relief measures, FOX 10 reported.
Conclusion
In conclusion, property taxes vary significantly across the United States, with location playing a crucial role in determining the amount homeowners pay. Understanding these trends and factors can help homeowners make informed decisions about their properties and financial planning.
FAQs
Q: What is the median U.S. property tax bill?
A: The median U.S. property tax bill reached $3,500 in 2024, a 2.8% increase from the previous year.
Q: Which state has the lowest property taxes?
A: West Virginia has the lowest property taxes, with a median of $728 per year.
Q: What services are funded by property taxes?
A: Property taxes fund important municipal services such as police, firefighters, schools, courts, libraries, parks, and recreation, among others.
Q: Are there any efforts to reduce property tax burdens?
A: Yes, lawmakers in several states are exploring ways to reduce the burden on homeowners, and Montana has already implemented property tax relief measures.
