Many homeowners of single-family properties experienced increased tax bills last year, despite a drop in average home prices. According to real estate data firm ATTOM, the average property tax bill increased 4.1% last year. And some areas of the United States experienced higher tax hikes than others.
ATTOM CEO Rob Barber explained in a statement that the property tax hikes were partly due to “inflationary pressures... along with rising public employee wages and other major expenses.”
Revenue from property taxes funds police and fire departments, maintains roads, and other initiatives that benefit the public. And when inflation is high, like it is now, these initiatives require more money to operate.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For example, the increased cost of living requires salary increases for public workers. So, localities raise property taxes to provide those higher salaries, allowing residents continued access to public services.
Here are some metropolitan areas in the U.S. where, according to ATTOM’s annual report, property taxes have increased the most.
Charlotte property taxes
Property taxes in Charlotte, North Carolina rose 31.5% from 2022 to 2023, significantly higher than the national average of 4.1%. Even so, property tax bills across the state are among the lowest in the country, with a median tax bill of $1,724, according to US Census Bureau data.
The average effective tax rate in North Carolina is just over 0.7%, which is also lower than in most other states.
Indianapolis
Average property taxes in Indianapolis, Indiana increased 18.1%, which is significantly less than in Charlotte. However, homeowners in the Hoosier State still saw tax bills over four times the national average last year. However, Indiana residents also tend to pay less property taxes overall.
The state’s median tax bill didn’t reach $1,500, and the average effective tax rate is less than 0.8%.
Kansas City
Kansas City, Missouri homeowners paid an average of 16.8% more last year than the year before. And although Missouri's average effective property tax rate reaches closer to 1%, median tax bills across the state were less than $1,900.
Denver property tax
Property taxes were up nearly 16% in Denver, Colorado last year. And despite an average effective property tax rate of less than 0.5%, the median property tax bill exceeded $2,200. That’s largely because the median home value in the Centennial State is nearly half of a million dollars.
Atlanta property tax increase
Property taxes in Atlanta, Georgia rose almost as much as in Denver, at 15.2%. However, property taxes across the state remained well below the national average. The average effective tax rate was just over 0.8%, and the median property tax bill was less than $2,100.
Home values and high property taxes
Inflation isn’t the only factor that drives higher property tax bills. Home values also contribute to property tax amounts. For example, Californians receive some of the highest tax bills in the country, despite the state imposing one of the lowest property tax rates. This is due to the generally high home prices in California.
And even if you don’t live in a state that is raising tax rates, you could experience higher tax bills. Making renovations to your home can increase the taxable value of your property, which can also increase your tax bill. And rising home prices can increase your property taxes, whether you make improvements to your home or not.
Related Content
-
The Most Popular Apps for Retirement Planning in 2025A J.D. Power survey ranks retirement planning apps based on customer service and satisfaction. Does your financial app make the cut?
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary FormsStandard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
The Final Countdown for Retirees with Investment IncomeRetirement Tax Don’t assume Social Security withholding is enough. Some retirement income may require a quarterly estimated tax payment by the September 15 deadline.
-
Standard Deduction 2025 Quiz: How Much Do You Really Know?Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.
-
IRS in Turmoil: GOP Budget Cuts and Staff Shake-Ups Threaten Taxpayer ServicesIRS Republican lawmakers advance a controversial budget bill that would gut IRS funding further, risking your 2026 tax filing season.
-
Cruise Lines Sue to Block Hawaii’s New Climate Tourism TaxState Tax Your vacation to the Aloha State could come at a higher price tag next year. Here’s why.
-
21 Last-Minute Gifts for Grandparents Day 2025 to Give Right NowHoliday Tips Last-minute gifting is never easy. But here are some ideas to celebrate Grandparents Day.
-
New $6,000 'Senior Bonus' Deduction: What It Means for Taxpayers Age 65-PlusTax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
Claiming the Standard Deduction? Here Are 10 Tax Breaks For Middle-Class Families in 2025Tax Breaks Working middle-income Americans won’t need to itemize to claim these tax deductions and credits — if you qualify.
