Rising property taxes – what can we do about them?
Property taxes across the U.S rose last year, but the hike was much lower than in 2020, according to a new report.
Second smallest rise in taxes over the past five years.
ATTOM found in its 2021 property tax analysis of almost 87 million single-family homes, $328 billion in property taxes were levied last year, up only 1.6% from $323 billion in 2020, well below the 5.4% increase seen in 2019 and the second smallest rise in taxes over the past five years.
The average tax on a single-family home increased just 1.8%
Last year the average tax on a single-family home increased just 1.8% to $3,785, from $3,719 in 2020, the smallest jump in five years and resulting in an effective tax rate of 0.9%, down from 2020’s 1.1%.
Rick Sharga, executive vice president of market intelligence at ATTOM said it’s hardly a surprise property taxes increased in 2021 when home prices across the country rose by 16%.
“In fact, the real surprise is that the tax increases weren’t higher, which suggests that tax assessments are lagging behind rising property values and will likely continue to go up in 2022,” he said.
Effective rates fell in 2021 even as total taxes rose due to home values rising faster than taxes, according to the report. Median home values grew more than 10% in most of the country as demand remained higher than available inventory.
In 74% of markets, property taxes increased faster than the national average. With the average property tax increase of 1.8% from 2020-2021, larger gains were seen in 163 or 74% of the 220 metros analyzed.
Largest property tax increase
Areas with the largest increases in average property taxes last year included Nashville, Tennessee, at 27%, Milwaukee, up 18.6%, Baltimore, up 12.3%, Grand Rapids, Michigan, up 12.3% and Louisville, Kentucky, up 11%. Markets with the largest decreases included Pittsburgh, which was down 35.1%, New Orleans, down 20.2%, Houston, down…