Almost All US Metropolitan Areas Saw Property Taxes Skyrocket. However, There Is A Wide Variation By Location
Homeowners in major metropolitan area have seen property taxes skyrocket by an average of 10.4% between 2021 and 2023. This is adding pressure to homeowners already grappling with high interest rates and housing costs.
Lending Tree examined the 50 largest metropolitan areas in the United States. The report highlights dramatic differences in property tax burdens depending on the location. Annual property taxes range from $1,091 in Birmingham, Alabama to over $10,000 in New York City.
The study shows that the typical U.S. homeowner pays $2,969 per year in property taxes or roughly $247 per month. That amount varies based on mortgage status. Homeowners without a mortgage pay a median of $2,474 annually. However, homeowners still paying off a home loan shell out a median of $3,343.
Property taxes increased in every metro analyzed over the two-year span. Homeowners in Tampa, Florida have seen the sharpest spike in taxes since 2021. Tampa homeowners saw their taxes skyrocket by 23.3%. Indianapolis followed Tampa with an 19.8% increase and Dallas, Texas at 19.0%. These fast-growing metros have seen significant real estate development and home value appreciation. All of this is likely contributing to the tax increases.
However, property tax hikes were relatively modest in a few Midwestern cities. Pittsburgh saw the smallest increase at just 4.4%. followed by Philadelphia at 8.2% and Milwaukee at 8.3%.
Unsurprisingly, some of the nation’s most expensive housing markets also carry the heaviest property tax burdens. New York tops the list with a median annual property tax of $9,937. San Jose, California follows close behind at $9,554. Nearby San Francisco residents pay a median of $8,156.
Meanwhile, homeowners in more affordable markets like Memphis, Tennessee only pay $1,856. Residents of Louisville, Kentucky only pay $1,912. However, taxes are trending upward for these areas.
