Property Taxes Levied on Single Family Homes Up 5.4 Percent In 2020, To More Than $323 Billion

Around $323 billion in property taxes were levied on single-family homes in 2020, up 5.4 percent from $306.4 billion in 2019, according to property database company ATTOM Data Solutions.

That’s from Attom’s 2020 property tax analysis for almost 87 million U.S. single family homes.

The average tax on single-family homes in the U.S. in 2020 was $3,719 — resulting in an effective tax rate of 1.1 percent.

The average property tax of $3,719 for a single-family home in 2020 was up 4.4 percent from $3,561 in 2019 while the effective property tax rate of 1.1 percent in 2020 was down slightly from 1.14 percent in 2019.

The report 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 was the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area.

New Jersey, Illinois, Texas, Vermont, Connecticut again post highest property tax rates

States with the highest effective property tax rates in 2020 remained New Jersey (2.2 percent), Illinois (2.18 percent), Texas (2.15 percent), Vermont (1.97 percent) and Connecticut (1.92 percent).

Other states in the top 10 for highest effective property tax rates also were the same as in 2019: New Hampshire (1.86 percent), New York (1.68 percent), Pennsylvania (1.64 percent), Ohio (1.62 percent) and Nebraska (1.53 percent).

Hawaii, Alabama, West Virginia, Colorado and Utah post lowest property tax rates

The lowest effective tax rates in 2020 were in Hawaii (0.37 percent), Alabama (0.44 percent), West Virginia (0.51 percent), Colorado (0.54 percent) and Utah (0.54 percent).

Other states in the top 10 for lowest effective property tax rates were Tennessee (0.59 percent), Nevada (0.6 percent), Idaho (0.61 percent), Arizona (0.62 percent) and Wyoming (0.63 percent).

Average tax more than 10 times higher in most expensive state versus least expensive

New Jersey had the highest average property tax on single-family homes, $9,196. That was more than 10 times over than the average tax of $841 in Alabama, the state with the lowest average levy.

Others states in the top five were Connecticut ($7,395), New York ($6,628), New Hampshire ($6,596) and Massachusetts ($6,514).

Others in the bottom five were West Virginia ($849), Arkansas ($1,147), Tennessee ($1,202) and Mississippi ($1,241).

Northeast metro areas have highest effective tax rates

Among 220 metropolitan statistical areas around the country with a population of at least 200,000 in 2020, 12 of the top 20 effective tax rates were in the Northeast.

Those with the highest effective property tax rates in 2020 were Syracuse, NY (2.83 percent); Trenton, NJ (2.69 percent); Binghamton, NY (2.67 percent); El Paso, TX (2.66 percent) and Rockford, IL (2.62 percent).

The highest rates among metro areas with a population of at least 1 million in 2020 were in Rochester, NY (2.46 percent); Houston, TX (2.44 percent); Hartford, CT (2.18 percent); Chicago, IL (2.15 percent) and Dallas, TX (2.13 percent).

The lowest rates in 2020 were in Honolulu, HI (0.36 percent); Daphne-Fairhope, AL (0.37 percent); Montgomery, AL (0.38 percent); Tuscaloosa, AL (0.39 percent) and Colorado Springs, CO (0.42 percent).

The lowest rates among metro areas with a population of at least 1 million in 2020 were in Nashville TN (0.53 percent); Salt Lake City, UT (0.58 percent); Birmingham, AL (0.58 percent); Phoenix, AZ (0.58 percent) and Denver, CO (0.6 percent).

Property taxes increase faster than national average in 55 percent of markets

Among the 220 metropolitan statistical areas analyzed in the report, 120 (55 percent) posted an increase in average property taxes from 2019 to 2020 that was above the national figure of 4.41 percent. They included Salt Lake City, UT (up 11.4 percent); San Francisco, CA (up 11.1 percent); San Jose, CA (up 10.8 percent); Seattle, WA (up 10.3 percent) and Atlanta, GA (up 10.2 percent).

Other major markets posting an increase in average property taxes that was above the national average included San Diego, CA (up 10.2 percent); Tampa, FL (up 10 percent); Denver, CO (up 9.9 percent); Raleigh, NC (up 9.7 percent) and Columbus, OH (up 9.1 percent).

Sixteen counties with average annual property taxes of more than $10,000

Among 1,453 U.S. counties with at least 10,000 single family homes in 2020 and sufficient data to analyze, 16 had an average single-family-home tax of more than $10,000, including 12 in the New York City metro area. The top five were Rockland County, NY ($13,931); Marin County, CA (outside San Francisco) ($13,257); Essex County, NJ ($12,698); Nassau County, NY ($12,386) and Bergen County, NJ ($12,348).

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