Home values fell slightly and average effective tax rate increased to 0.9 percent; Tax rates remain highest in Northeast and Midwest
ATTOM, the leading provider of property data, AI-powered analytics, and real estate intelligence solutions, released its annual property tax analysis, which shows that $396.8 billion in property taxes were levied on more than 89.6 million single-family homes in 2025, up 3.7 percent from 2024.
The average single-family home, with an estimated value of $494,231, generated $4,427 in taxes, a 3 percent increase over the prior year.
Nationwide, the effective tax rate for single-family homes in 2025 was 0.9 percent, up from 0.86 percent in 2024 and the highest since 2020, when the national effective tax rate was 1.1 percent.
2025 Property Taxes by County Heat Map
ATTOM analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county levels along with estimated market values of single-family homes calculated using an automated valuation model (AVM). The effective tax rate shows the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area.
The increase in effective tax rate corresponded with a drop, between 2024 and 2025, in average estimated home value. The $494,231 national average estimated value for a single-family home in 2025 was down 1.7 percent year-over-year, but 2024 had marked a significant increase over the years prior, meaning that 2025’s average estimated value for single-family homes was still one of the highest recorded.
“Property taxes in 2025 demonstrate that tax bills reflect more than just home values,” said Rob Barber, CEO at ATTOM. “Even with a slight dip in prices, higher tax bills combined with declining home values led to an increase in effective tax rates, underscoring the role of local government costs and shifting tax policies. Regional disparities persist, with the Northeast and Midwest continuing to see the highest burdens.”
Northeastern and Midwestern Homeowners most taxed
The highest effective tax rates were concentrated in the Northeast and Midwest, led by Illinois (1.84 percent), New Jersey (1.58 percent), Vermont (1.4 percent), Connecticut (1.36 percent), and Ohio (1.32 percent).
Rounding out the top 10 states with the highest effective tax rates in 2025 were New Hampshire (1.29 percent), Iowa (1.25 percent), Pennsylvania (1.24 percent), Nebraska (1.24 percent), and New York (1.23 percent).
Western states boast lowest tax rates
The states with the lowest effective tax rates in 2025 were Hawaii (0.33 percent), Idaho (0.39 percent), Wyoming (0.4 percent), Arizona (0.43 percent), and Alabama (0.43 percent).
Rounding out the top 10 states with the lowest rates in 2025 were Utah (0.45 percent), Delaware (0.48 percent), West Virginia (0.48 percent), Tennessee (0.5 percent), and Nevada (0.52 percent)
Northeastern homes generated highest bills
The combination of high tax rates and home values in the Northeast generated the nation’s highest average tax bills, led by New Jersey ($10,499), Connecticut ($8,901), New Hampshire ($8,174), Massachusetts ($7,904), and New York ($7,732).
New Jersey’s average tax bill was nearly 10 times higher than the $1,081 average bill in West Virginia, which had the lowest average property tax for single-family homes.
After West Virginia, the states with the lowest average bills were Alabama ($1,284), Arkansas ($1,387), Mississippi ($1,563), and Louisiana ($1,639).
Highest effective tax rate metros concentrated in the Northeast and Midwest
The 25 metropolitan statistical areas with the highest effective rates in ATTOM’s analysis were almost all in the Northeast or Midwest, led by Binghamton, NY (2.27 percent); Champaign, IL (1.95 percent); Trenton, NJ (1.89 percent); Peoria, IL (1.88 percent); and Rockford, IL (1.86 percent). Metro areas were included in the analysis if they had populations over 200,000 and sufficient data to analyze.
The metros with the lowest effective tax rates were Knoxville, TN (0.29 percent); Salisbury, MD (0.29 percent); Honolulu, HI (0.33 percent); and Johnson City, TN (0.34 percent); and Lake Havasu City, AZ (0.34 percent).
Among metros with populations of at least 1 million, the highest tax rates were in Rochester, NY (1.82 percent); Chicago, IL (1.78 percent); Buffalo, NY (1.73 percent); Cleveland, OH (1.63 percent); and Philadelphia, PA (1.41 percent).
After Honolulu, the lowest tax rates among those largest metros were in Phoenix, AZ (0.39 percent); Nashville, TN (0.49 percent); Salt Lake City, UT (0.5 percent); and Las Vegas, NV (0.52 percent).
Half of metro areas saw tax bills increase more than national average
Among the 221 metro areas included in ATTOM’s analysis, 50.2 percent (111) saw their average single-family home tax bill rise by more than 3 percent, the national average increase.
The metro areas with populations of at least 1 million that had the largest year-over-year increase in average tax bills were Memphis, TN (up 34 percent); Baltimore, MD (up 27 percent); St. Louis, MO (up 11 percent); Houston, TX (up 10 percent); and Kansas City, MO (up 8 percent).
New Jersey counties home to many of the highest tax bills
Out of 1,500 counties with at least 10,000 single-family homes and sufficient data, 26 had average property tax bills over $10,000. Of those 26 counties, 10 were in New Jersey, five were in California, and 3 in New York.
The counties with the highest average tax bills were Westchester County, NY ($18,386); Marin County, CA ($16,745); Bergen County, NJ ($14,443); Essex County, NJ ($14,337) and San Mateo County, CA ($14,312).
Conclusion
ATTOM’s 2025 Property Tax Analysis shows that $396.8 billion in property taxes were levied on more than 89.6 million single-family homes in 2025, up 3.7 percent from 2024. The average single-family home was valued at approximately $494,231 and incurred a property tax bill of $4,427, marking a 3 percent increase from the previous year. Regional disparities remain pronounced, with homeowners in the Northeast and Midwest facing the heaviest costs, while Western states continue to offer relative relief.
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