Property taxes are on the rise, another source of financial stress for Americans.
According to new data released by ATTOM Data, total property taxes on single-family homes across the United States increased by 4% in 2022, totaling $340 billion.
This marks a significant increase from the previous year, with the average property tax bill for a single-family home rising to $3,719.
Property taxes were highest in the Northeast, with New Jersey, New York, and Connecticut topping the list. The lowest were seen in the South, with Alabama, West Virginia, and Arkansas having the least expensive property taxes.
Increasing taxes are an effect of soaring home prices, which have increased by 19% over the past year.
Though homeowners have benefitted from historically high equity, tax pressure is more immediately felt and can cause trouble for homeowners with tight budgets. Sticky inflation is already causing Americans to rely on credit cards to make ends meet, and further financial pressure could worsen the problem.
One homeowner interviewed by CBS saw a 20% increase in her property taxes in just one year, adding $2,000 to her total.
“I hadn’t planned on spending thousands of dollars more on property taxes for the year,” she said.
The report predicts that property tax rates will continue to rise in the coming years, with homeowners in some areas experiencing double-digit increases.
The rising property taxes have also raised concerns among policymakers, who fear that they could hinder economic growth and make it more difficult for individuals and families to afford homes.
Kansas voters will likely consider a constitutional prohibition on counties raising property tax valuations by more than 4% in any year this November.
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