Homeowners in 2025 paid a total of $396.8 billion in property taxes on more than 89.6 million single-family homes, a 3.7 percent increase from 2024, an April 9 report by real estate property data provider ATTOM states.

The average single-family home paid $4,427 in taxes, up by 3 percent from 2024, driven by a higher effective tax rate, according to the report.

The ATTOM report analyzed tax data collected from assessment offices, combined with estimated market values of single-family homes. The estimated home value of $494,231 for 2025 was down by 1.7 percent year-over-year, ATTOM noted, following a significant spike in 2024.

Nationally, the effective tax rate on single-family residences in 2025 was 0.9 percent, up slightly from the prior year and the highest since 2020, when it stood at 1.1 percent, ATTOM's researchers wrote.

The tax growth rate is higher than the Bureau of Labor Statistics' (BLS) inflation rate, which stayed below 3 percent for most of 2025. Inflation rose to 3.3 percent in March, up by nearly a full percentage point from the start of the year, driven by higher energy and fuel costs.

Property taxes—a primary source of revenue for local governments and municipalities—have spiked largely because of a run-up in housing prices over the past five years, the nonprofit Tax Foundation stated.

In the final quarter of 2019, the median sales price of homes sold in the United States was $327,100, the Federal Reserve Bank of St. Louis reported. By the end of 2025, that figure had jumped by 24 percent to $405,300.

Homeowners can pay significantly more in property taxes as their home values increase due to higher assessed values, the Tax Foundation noted.

However, ATTOM CEO Rob Barber said property taxes in 2025 demonstrate that tax bills reflect more than just home values.

"Even with a slight dip in prices, higher tax bills combined with declining home values led to an increase in effective tax rates, underscoring the role of local government costs and shifting tax policies. Regional disparities persist, with the Northeast and Midwest continuing to see the highest burdens," Barber said.

More than 50 percent of metropolitan areas with populations of more than 1 million residents saw their property tax bills for single-family homes rise more than 3 percent in 2025, ATTOM stated.

In the Northwest, the combination of high property tax rates and escalating home values led to some of the highest average tax bills in the country. Average tax bills in New Jersey were $10,499, followed by Connecticut at $8,901 and New Hampshire at $8,174.

Conversely, average tax bills were lowest in West Virginia at $1,081. Residents of Alabama paid an average of $1,284 in property taxes, while residents of Arkansas paid $1,387, ATTOM researchers wrote.

At the county level, Westchester County, New York, had the highest average property tax in 2025 at $18,386, followed by Marin County, California, at $16,745 and Bergen County, New Jersey, at $14,443.

Average tax calculations were derived by dividing the total amount of property taxes paid by residents of a particular county by the number of single-family residences in that area, ATTOM noted.