Every week, Mansion Global poses a tax question to real estate tax attorneys. Here is this week’s question.
Q. What U.S. states have had the highest property tax increases over the last five years?
A. Several states have recently made headlines for rising property taxes.
States such as Texas, Illinois Washington have seen increased property values, which means larger taxable values resulting in larger tax bills. Often these increases are based on where in the state a homeowner lives.
For example, Seattle posted a 14% increase in average property taxes for single-family homes between 2017 and 2018 alone, according to annual property tax data from California-based ATTOM Data Solutions, released Thursday. The rest of the state has seen increases, too, with the average tax amount being $3,772 in 2017, compared to $2,921 in 2014, according to historic data from ATTOM.
The Dallas-Fort Worth area saw an 8% jump in property taxes in 2018, the data showed. Homeowners throughout the state now paid about $5,047 in taxes in 2017, compared to $4,065 in 2014. The Texas State Legislature is currently considering a statewide cap on property tax increases, Mansion Global recently reported.
Illinois had the effective property tax rate in the country for 2018, 2.22%, according to the ATTOM report. The rate was the same as 2017, when homeowners paid an average tax of $4,941. In 2014, they paid an average of $4,684, the data showed.
New Jersey has been at the top of the list for years, but the rate is actually down from the 2017 rate of 2.28%. Still, homeowners there paid an average of $8,108 in 2014, compared to $8,696 in 2017.
Nationwide, average property taxes rose 3% to $3,498 for a single-family home in 2018, compared to of $3,399 in 2017. But the effective property tax rate was down slightly in 2018 to 1.16%, compared to 1.17% in 2017.
“Property taxes levied on homeowners rose again in 2018 across most of the country,” Todd Teta, chief product officer for ATTOM Data Solutions, said in the report. “Many states across the country have imposed caps on how much taxes can go up, which probably contributed to a slower increase in 2018 versus 2017.”
The report also found that single-family home owners in counties surrounding New York City paid some of the nation’s highest average property taxes.
For example, in Westchester County, New York, the average tax bill was $17,392 in 2018 and $12,925 in Rockland County, New York. In Essex County, New Jersey, homeowners paid an average of $12,161, while those in Bergen County, New Jersey, paid $11,771.
ATTOM uses property tax data collected from county tax assessor offices at the state, metro and county levels, as well as estimated market values of single-family homes calculated using an automated valuation model.