Property Taxes Increase Across Nation Due To Rising Costs Of Running State And Local Governments

Property Taxes Increase Across Nation Due To Rising Costs Of Running State And Local Governments

A change to homeowners’ property taxes is occurring across the country, as people began to feel the pinch in 2020 when rates increased by 5.4% compared with the previous year. The total came to a staggering $323 billion charged in total across all 50 states, spread out across 87 million homes. The average tax bill was $3,719, or 1.1% of a home’s value, according to ATTOM Data Solutions.

Percentages were even higher elsewhere, for example, Texas clocked in at 2.15%, Illinois at 2.18%, and New Jersey at 2.2%. This increase was the highest in the last 4 years, rising past the rate of inflation. Rate increases in 2019 were just half that of those imposed in 2020.  Fortunately for many buyers, this period coincides with historically low interest rates, nevertheless, high taxes put pressure on many already feeling the squeeze from the economy downturn due to Covid-19.

The current spike in property taxes is due to the cost of maintaining public services, as the associated price tag has likewise gone up. Metro areas were hit particularly hard, with El Paso Texas seeing an average of 2.66% of home value assessed, Trenton, N.J. being hit with 2.69%, and Syracuse, New York coming in first place with a whopping 2.83%

When comparing the dollar amount owed, the highest states were Massachusetts at $6,514, Connecticut at $7,395, and New Jersey at $9,196. The lowest states were Mississippi at $1,241, West Virginia at $849, and Alabama at $841.

Sokol Group is expert at helping residents whose annual assessments are too high in achieving a lower bill by initiating the property tax grievance process. We can help those who live in Rockland, Orange, and Westchester counties or those residing in the Hudson Valley. Reach out to us for assistance on how to best alleviate your situation.

Photo courtesy of Pexels

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