Homeowners across the U.S. who benefited from soaring home prices in recent years are now feeling the squeeze of sharply higher property tax bills. According to new data from Redfin, the dollar amount of property tax collections has jumped nearly 30% nationwide since 2019, despite a drop in the average effective tax rate.
The report revealed that monthly property tax bills have increased in 48 of the 50 largest U.S. metros, with Las Vegas and Pittsburgh being the only exceptions, where increases were limited to 4.3% and 1.7%, respectively.
"Even though the effective tax rate has dropped, the total tax burden for homeowners is up because they're paying more in actual dollars," said Elijah de la Campa, a senior economist at Redfin. "The average effective tax rate fell to 0.67% from 0.77% in 2019 because home prices have risen faster than local tax rates. But for many homeowners, monthly payments are higher, reflecting the reality of higher property valuations."
The steepest rise in property taxes since 2019 was seen in Indianapolis, where the median monthly tax bill surged by 66.7%. Similar increases were observed in Atlanta, Jacksonville, Tampa, and Miami, rising by at least 48.1% over the same period.
Redfin noted that property tax laws vary widely across jurisdictions, leading to some idiosyncrasies not fully reflected in national data. Still, cities like Nassau County, Newark, and New Brunswick continue to report some of the highest property tax bills in the country, while Phoenix, Nashville, Charlotte, Las Vegas, and Detroit have the lowest.
In Austin, Texas, property taxes now account for 20% of the median housing cost, with similar shares in Newark, San Antonio, and Houston. Redfin highlighted that while higher monthly payments strain homeowners' budgets, the revenue generated supports critical services, including education and emergency services, which can ultimately boost property values in the long run.
Despite the relative allure of states like Florida, Texas, and Arizona, higher tax bills tied to increased home values and growing populations in the Sun Belt are beginning to close the affordability gap. For homeowners, the choice between high-tax coastal metros and Sun Belt regions may increasingly hinge on other factors, like climate resilience and the overall cost of living—indicating a shift in where Americans can truly find affordable homeownership.