Rising home values have pushed the average single-family property tax bill to over $4,400, a 3% increase from 2024, according to real estate data from Attom. Local governments are raising tax rates to offset higher inflation and the end of federal pandemic funding, creating a financial squeeze for homeowners already facing increased costs for insurance, gas, and groceries.

Property tax bills vary dramatically by location, with New Jersey averaging $10,499 and Westchester County, New York, reaching $18,386. The effective national tax rate has climbed to 0.9%, the highest since 2020. While some states like Florida and Texas are considering eliminating property taxes entirely, the taxes generate about 70% of local government revenue, funding essential services like schools, police, and road maintenance.

Homeowners can appeal their assessments by checking for errors in property details, comparing neighborhood values, or hiring services like Ownwell. Special exemptions exist for primary residences, seniors, and disabled veterans, while the federal SALT deduction cap has temporarily increased to $40,000 through 2029. With bills rising faster than perceived service improvements, local officials face growing pressure to address taxpayer discontent.