In a year marked by inflation and housing market volatility, property taxes have become a growing burden for American homeowners especially in states like New Jersey, which now holds the unenviable title of having the highest median property tax bill in the country at $9,413, according to new data from Realtor.com.
As home values continue to climb and local tax rates adjust upward, property owners are facing steeper bills, even as wages and purchasing power remain stagnant for many. In 2024, the national median property tax bill rose 2.8% from the previous year, landing at $3,500. Over 73% of homeowners across the country saw their property tax bills increase.
Why Property Taxes Are Rising
Property taxes are determined by the assessed value of a home and its location. Municipalities use the revenue to fund essential public services like schools, fire departments, law enforcement, and road maintenance. However, as home values have surged in recent years especially post-pandemic so too have the taxes tied to those homes.
“Many homeowners may not realize they can challenge their property assessments,” said Joel Berner, a senior economist at Realtor.com. “In fact, more than 40% of properties in the U.S. could lower their tax bills by appealing their valuation, potentially saving over $500 annually.”
The Political Pushback
Rising taxes have fueled growing discontent among property owners and it’s become a hot-button issue for lawmakers. Florida Governor Ron DeSantis has reiterated his commitment to eliminating property taxes altogether, a bold move that would make Florida the only state with neither property tax nor state income tax.
“Property taxes are essentially forcing people to rent from the government,” argued one Pennsylvania legislator who supports tax reform. The sentiment is echoed across multiple states where residents say their property taxes are becoming unaffordable, threatening homeownership as a path to generational wealth.
North vs. South: A Tax Divide
While homeowners in New Jersey, New Hampshire, Connecticut, and New York are shelling out the highest tax bills in the nation, residents in many southern states are experiencing far less pressure. In Arkansas, for example, the median property tax is just $725 the lowest in the country.
Here’s a snapshot of the top five states with the highest median property taxes in 2024:
- New Jersey – $9,413
- New Hampshire – $7,715
- Connecticut – $6,944
- Washington – $6,338
- New York – $6,096
On the other end of the spectrum, homeowners in these states pay the least:
- Arkansas – $725
- West Virginia – $728
- Alabama – $804
- Indiana – $995
- Mississippi – $1,034
These lower-tax states are increasingly attractive to retirees, remote workers, and middle-income families looking to reduce their cost of living. Many are also seeing a rise in inbound migration and housing demand as a result.
Hidden Savings: The Case for Appealing Assessments
One of the lesser-known strategies for managing property tax bills is to appeal the home’s assessed value. Local governments reassess properties on an annual or biennial basis, and errors or market shifts can lead to inflated valuations.
“If you think your home is being overvalued, you absolutely have the right to appeal,” Berner noted. “Doing so could significantly reduce your tax burden.”
Looking Ahead
With property taxes expected to continue rising alongside home values in many markets, calls for reform are only growing louder. Whether through legislation, appeals, or migration to lower-tax states, more Americans are seeking ways to reduce this recurring cost.
In an environment where homeownership is already stretched by rising mortgage rates and insurance costs, controlling property taxes may be one of the few remaining levers for long-term affordability and a key factor in where Americans choose to plant roots next. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.