In a recent analysis by ATTOM Data Solutions on 2018 property taxes, there were a total $304.6 billion property taxes levied on single-family homes in 2018. The report also showed that the average property tax amount on single-family homes in 2018 was $3,498 – an effective tax rate of 1.16 percent.
That number is up three percent from the average property tax of $3,399 in 2017, and the effective property tax rate of 1.16 percent in 2018 is down from the effective property tax rate of 1.17 percent in 2017.
Which markets have the highest property tax rates?
The report analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county levels along with estimated market values of single-family homes calculated using an automated valuation model (AVM). The effective tax rate was the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area.
In looking at 219 metropolitan statistical areas analyzed in the report with a population of at least 200,000, those with the highest effective property tax rates were Binghamton, New York (3.19 percent); Syracuse, New York (2.89 percent); Rochester, New York (2.88 percent); Rockford, Illinois (2.83 percent); and Atlantic City, New Jersey (2.74 percent).
What markets paid the most in average property taxes?
While the effective tax rates in the above markets was above that of the nation, what about those markets whose average property taxes were almost in the double digits?
In fact, Bridgeport, New York boasted the highest average property tax, among all 219 metropolitan areas analyzed in the report. They were averaging $10,754 in property taxes in 2018. Those metro areas to follow included: New York, New York ($9,700); San Jose, California ($9,391); Trenton, New Jersey ($8,496); and San Francisco, California ($7,973).
And the lowest?
As property taxes continue to rise in most parts of the country, which areas are not hit as hard by property tax hikes?
Among the 219 metro areas analyzed for the report, those with the lowest effective property tax rates were Laredo, Texas (0.35 percent); Honolulu (0.36 percent); Montgomery, Alabama (0.37 percent); Tuscaloosa, Alabama (0.39 percent); and Colorado Springs, Colorado (0.42 percent).
Here are the other areas included in the top 10 metros with the lowest effective property tax rates in 2018:
- Laredo, Texas
- Urban Honolulu, HI
- Montgomery, AL
- Tuscaloosa, AL
- Colorado Springs, CO
- Huntsville, AL
- Provo-Orem, UT
- Salisbury, MD-DE
- Greeley, CO
- Fort Collins, CO
National average annual comparison
Out of the 219 metropolitan statistical areas analyzed in the report, 120 (55 percent) posted an increase in average property taxes above the national average of three percent, including Los Angeles (five percent increase), Dallas-Fort Worth (eight percent increase), Washington D.C. (four percent increase), Atlanta (seven percent increase), and San Francisco (seven percent increase).