Photo: AndreyPopov / iStock / Getty Images
New Jersey has the highest property taxes in the United States, with a median tax bill of $9,413, according to a recent report by Realtor.com. This figure is nearly three times the national median of $3,500, which increased by 2.8% from 2023 to 2024. The rise in property taxes is largely due to soaring home values and changes in local tax codes.
Property taxes are a significant expense for homeowners, funding essential local government services like schools, roads, and emergency services. The amount owed is based on a home's value and location, and it can vary annually due to local tax laws and property value reassessments.
New Jersey is followed by New Hampshire, Connecticut, Washington, and New York in having the highest median property taxes. Conversely, states like Indiana, Alabama, West Virginia, and Arkansas have the lowest median property taxes.
Realtor.com senior economist Joel Berner noted that many homeowners might not realize they can protest their home's value assessment, potentially saving at least $100, with a median savings of over $500. Some states, like Florida, are considering eliminating property taxes altogether, which could significantly impact their real estate markets.
Property taxes remain a contentious issue, with some politicians calling for their elimination, arguing that homeowners should not have to "pay rent" to the government. Despite the challenges, property taxes are a primary tool for financing local governments, accounting for 70.2% of local tax collections in fiscal year 2022, according to the Tax Foundation.