Property Tax Trends by State and County: What's Changed Since 2019?

By: Anat Nusinovich

In recent years, real estate taxes have exhibited a significant upward trend. Between the pre-pandemic period and last year, the national median annual tax surged by 23%, climbing from $2,480 in 2019 to $3,045 in 2023. This increase has been observed across all states, with each one recording a rise in the annual median tax paid on real estate over this period.

Understanding property tax trends is important for both REALTORS® and home buyers, as these can make up a sizable portion of homeowners' budgets. The proportion of median annual tax as a percentage of median annual household income averaged 4% over the last decade.

In this analysis, we investigate data on the median annual real estate taxes paid across states and counties, using the 2023 American Community Survey (ACS) 1-year Public Use Microdata Sample (PUMS) files from the U.S. Census Bureau. An analysis of the counties uncovers some interesting variations in local tax behavior.

Median Annual Property Taxes by State

From 2019 to 2023, every state saw an increase in median annual property taxes, with 27 states recording hikes of 20% or more. Florida experienced the largest rise, with the median annual tax increasing 38%, from $2,003 in 2019 to $2,762 in 2023. Wyoming followed closely with a 36% increase, from $1,318 in 2019 to $1,794 in 2023. New Jersey’s median annual tax rose 8%, from $8,417 in 2019 to $9,088 in 2023, making it the state with the highest median property tax. Notably, six Northeastern states – New Jersey, Connecticut, New York, Massachusetts, Vermont, and Rhode Island – were among the top 10 states with the highest median property taxes last year despite increasing less than 20% over the past four years.

In contrast, Alabama recorded the lowest median annual tax at $827, up 29% from $640 before the pandemic. Nearly all the top 10 states with the lowest property taxes were in the Southern region. Alabama was followed by West Virginia, which grew by 19%, from $732 to $873; Arkansas, which grew 23%, from $845 to $1,035; and Louisiana, which grew 34% from $878 to $1,175. Rhode Island had the smallest increase at 7%, closely followed by Connecticut at 7% and New Jersey at 8%.

To see more details, select a state on the map:

Median Annual Property Taxes by County

Upon closer examination, we find variations at the county level, with some similarities observed in neighboring counties and states. Between 2019 and 2023, median annual property taxes changed in all counties. Of 3,144 counties nationwide, 3,001 experienced an increase in the median annual property tax.

In 2023, nine of the 10 counties with the highest median annual property tax were in New York or New Jersey. The one exception was Falls Church County, which is in Virginia. Bergen County, NJ, had the highest median annual tax at $10,506, representing a 2% increase from $10,275 four years prior. Essex County, NJ, came next, with a median annual tax of $10,468, up 3% from $10,136 in 2019. Westchester County, NJ, followed closely with a median annual tax of $10,375, which marked a 3% decrease from $10,658 in 2019.

In stark contrast, all of the top 10 counties with the lowest median property tax were in Alabama, with Fayette County leading at only $379 annually. Eight out of 10 counties registered a decrease larger than 10% in the annual tax over that period. Fayette County and Lamar County have decreased by 14% (from $442 in 2019 to $379 in 2023), while Bibb County has decreased by 11% (from $423 in 2019 to $379 in 2023).

Over the past four years, property taxes have more than doubled in 18 counties and increased by 50% or more in 270 counties. The largest increases were seen in Monroe County, IL, and Chilton County, AL, both of which saw an increase of 118%, followed by Muskogee, OK, which increased by 111%. Notably, seven out of the top 10 counties with the highest increases were in Colorado, each registering a 108% rise. In addition, median annual taxes have doubled in Nowata County, OK (99% increase), Jefferson County, LA (103% increase), and Cameron County, LA (103% increase). In contrast, the lowest tax increase was seen in Harrison County, MS (1%), Philadelphia County, PA (1%), and Stone County, MO (1%).

Unlike the nationwide trend, not all counties saw increased property taxes—in 142 counties, the median annual property tax change was negative. The largest decline was seen in Stewart County, TN, whose annual property tax declined by 38% from $1,292 to $804, and Geauga County, OH, whose tax declined by 36% from $4,393 to $2,794. Out of the top 10 counties with the largest declines in tax were four counties in South Carolina and two counties in West Virginia. The smallest declines were registered in Randolph County, AR (-1%), Lawrence County, AR (-1%), and Clay County, AR (-1%).

To see more details, select a county on the map:

Affordability and the Effects on the Housing Market

Last year, Essex County, NJ, had the highest proportion of property tax to household income, with property taxes accounting for 14% of the median annual household income of $76,333. In Bergen County, NJ, which had the highest median annual property taxes paid in 2023, the ratio was 9%. In contrast, in Fayette County, AL, which had the lowest property taxes that year, the ratio was 1%. Reflecting the trend in median annual property taxes, all the top 10 counties with the highest tax-to-income ratios were in New York or New Jersey, while the top 10 counties with the lowest were all in Alabama.

Rising real estate taxes are affecting housing affordability. Since 2013, the median annual property tax as a percentage of the median annual household has averaged 4%. This proportion has been increasing each year since 2019. Significant differences in property taxes between states and counties affect homeowners and home buyers. Prospective home buyers, particularly first-time buyers, tend to seek areas with lower median annual taxes and slower tax changes.