State and local governments have faced a cash crunch as a result of the COVID-19 pandemic. And they’re passing the pain on to homeowners within the sort of higher property taxes, in step with a replacement report.
A new analysis from real-estate data company Attom Data Solutions found that single-family homeowners paid $323 billion in land taxes in 2020, up more than 5% from 2019. The typical property tax nationwide was $3,719 for a single-family point 2020, up 4.4% from the year prior.
While the effective tax rate did drop slightly between 2019 and 2020, Americans last year were hit overall with the biggest average property-tax hike in 4 years.
Property taxes enhanced quicker than average in 55% of the 220 metropolitan areas Attom studied for its report. Several of those counties enclosed common real-estate markets within the Sun Belt. Among the areas that saw the foremost notable increase in average property taxes were Salt Lake-town (11.4%), San Francisco (up 11.1%), Seattle (up 10.3%) and Atlanta (up 10.2%).
The states where property-tax rates are the highest didn’t change, despite the increase in property taxes nationwide. New Jersey had the highest effective property-tax rate at 2.2%, followed by Illinois which is 2.18%, In Texas, it is 2.15%, Green Mountain State (1.97%), and Connecticut (1.92%). Hawaii had the bottom rate within the country at 0.37%, followed by Alabama at 0.44%.
States such as Texas, Illinois, and Washington have seen increased property values, which suggest larger nonexempt values leading to larger tax bills. Usually, these increases are supported wherever within the state a house owner lives.
For example, Seattle posted a 14% increase in average property taxes for single-family homeowners between 2017 and 2018 alone, in step with annual property tax data from California-based ATTOM Data Solutions, discharged recently. The rest of the state has seen increases, too, with the typical tax quantity being $3,772 in 2017, compared to $2,921 in 2014, in step with historic data from ATTOM.
For example, in Westchester County, New York, the typical invoice was $17,392 in 2018 and $12,925 in Rockland County, New York. In the county, New Jersey, homeowners paid a mean of $12,161, whereas those in Metropolis County, New Jersey, paid $11,771.
There were 16 counties nationwide where owners paid quite $10,000 in property taxes last year on average. States with the highest effective property tax rates in 2020 remained New Jersey (2.2%), Illinois (2.18%), Texas (2.15%), Vermont (1.97%), and Connecticut (1.92%).
Other states in the top 10 for highest effective property tax rates also were the same as in 2019: New Hampshire (1.86%), New York (1.68%), Pennsylvania (1.64%), Ohio (1.62%), and Nebraska (1.53%).
Other states in the top 10 for lowest effective property tax rates were Tennessee (0.59%), Nevada (0.6%), Idaho (0.61%), Arizona (0.62%) and Wyoming (0.63%).
Among the 220 metropolitan applied math areas analyzed within the report, 120 (55%) posted a rise in average property taxes from 2019 to 2020 that was on top of the national figure of 4.41%. They included Salt Lake City, UT (up 11.4%); San Francisco, CA (up 11.1%); San Jose, CA (up 10.8%); Seattle, WA (up 10.3%) and Atlanta, GA (up 10.2%).
Among 1,453 U.S. counties with a minimum of 10,000 single-family homeowners in 2020 and sufficient data to analyze, sixteen had a mean single-family-home tax of additional than $10,000, including 12 in the New York City metro area.