American homeowners received $ 323 billion in property tax bills last year. This is an increase of 5.4 percent from $ 306.4 billion in 2019. According to ATTOM Data Solutions, the average bill for each of the country’s 87 million single-family homes was $ 3,719, which translates to an effective tax rate of 1.1 percent. That average rose 4.4 percent from $ 3,561 in 2019, while the effective property tax rate decreased slightly from 1.1 percent in 2020 from 1.14 percent in 2019.
“Homeowners in the United States were hit by the largest average property tax increase in the past four years in 2020, a
Signs that the cost of running local governments and public school systems has risen well above the rate of inflation. The increase was double what it was in 2019, “said Todd Teta, ATTOM Data Solutions’ chief product officer.” Fortunately, the youngest home buyers have extremely low interest rate mortgages that include the cost of home ownership. However, the latest tax numbers speak clearly of the continuing pressure on recent and long-term homeowners to support the rising costs of public services. “
The highest tax rate was 2.2 percent in New Jersey, followed by Illinois (2.18 percent), Texas (2.15 percent), Vermont (1.97 percent), and Connecticut (1.92 percent). They were also at the top of the list in 2019. 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), too record.
New Jersey also had the highest average single-family home tax, $ 9,196,
ranked last in Alabama more than 10 times the average tax of $ 841. Other states in the top 5 included Connecticut ($ 7,395), New York ($ 6,628), New Hampshire ($ 6,596), and Massachusetts ($ 6,514). Next to Alabama, West Virginia ($ 849), Arkansas ($ 1,147), Tennessee ($ 1,202), and Mississippi ($ 1,241) were the bottom five.
ATTOM Data analyzed real estate tax data collected by state, subway and district level tax authorities, as well as 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.