Property taxes are on the rise nationwide, jumping an average of 10.4% between 2021 and 2023 — a notable increase that’s adding pressure to homeowners already grappling with high interest rates and housing costs, according to an analysis from online lending marketplace LendingTree.
The analysis, which examined the 50 largest metropolitan areas in the United States, highlights dramatic differences in property tax burdens depending on location. Median annual property tax bills range from as low as $1,091 in Birmingham, Ala., to nearly $10,000 in New York City.
According to the study, 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, while those still paying off a home loan shell out significantly more — a median of $3,343.
Despite broad regional variation, property taxes increased in every metro analyzed over the two-year span. The sharpest spikes were found in Tampa, Fla. (up 23.3%), Indianapolis, Ind. (19.8%), and Dallas, Texas (19.0%). These fast-growing metros have seen significant real estate development and home value appreciation, likely contributing to the tax increases.
On the other end of the spectrum, property tax hikes were relatively modest in a few Midwestern cities. Pittsburgh saw the smallest increase at just 4.4%, followed by Philadelphia (8.2%) and Milwaukee (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, Calif., follows close behind at $9,554, while nearby San Francisco residents pay a median of $8,156.
Meanwhile, homeowners in more affordable markets like Memphis, Tenn. ($1,856), and Louisville, Ky. ($1,912), continue to enjoy comparatively light tax bills — though even in these cities, increases are trending upward.
The LendingTree analysis serves as a reminder that affordability isn’t just about home prices and mortgage rates. Ongoing costs like property taxes can significantly impact the long-term cost of owning a home — and those costs can change rapidly, depending on local tax policies and shifts in home values..
As municipalities look for ways to manage post-pandemic budgets, the pressure on local property tax bases is likely to remain in the spotlight. Property taxes are an increasingly important consideration for prospective buyers and current homeowners alike.
