Home values fell slightly and average effective tax rate increased to 0.9 percent; Tax rates remain highest in Northeast and Midwest IRVINE, Calif., April 9, 2026 /PRNewswire/ -- ATTOM, the leading provider of property data, AI-powered analytics, and real estate intelligence solutions,...
ATTOM's annual property tax analysis revealed $396.8 billion in property taxes were levied on over 89.6 million single-family homes in 2025, marking a 3.7% increase from 2024. The average effective tax rate rose to 0.9%, with the highest rates in the Northeast and Midwest.
The increase in property taxes despite declining home values suggests potential shifts in local government fiscal policies and highlights regional disparities in tax burdens. Investors should consider the implications of rising effective tax rates on property valuations and cash flow projections.
Rising effective tax rates in high-tax regions
HighConsider diversifying investments into regions with lower tax burdens.
Declining home values impacting investment returns
MediumFocus on properties with strong cash flow potential and stable tenant demand.
Local government fiscal pressures
MediumMonitor local government fiscal policies and potential changes in tax rates.
ATTOM's annual property tax analysis for 2025 highlights a 3.7% increase in property taxes, totaling $396.8 billion on over 89.6 million single-family homes. The average effective tax rate rose to 0.9%, with the highest rates in the Northeast and Midwest. Despite a 1.7% decline in average home values to $494,231, the average tax bill increased by 3% to $4,427. Illinois had the highest tax rate at 1.84%, while Hawaii had the lowest at 0.33%. The analysis underscores regional disparities in tax burdens and the impact of local government fiscal policies.
This source provides comprehensive data on property tax trends, highlighting regional disparities and the impact of fiscal policies on real estate investments. Analysts would miss critical insights into effective tax rate changes and regional tax burdens without this source.
The increase in effective tax rates suggests a cautious outlook for real estate investors in high-tax regions.
prnewswire.com
On April 9, 2026, ATTOM released its annual property tax analysis for 2025, showing a 3.7% increase in property taxes from 2024, with the average effective tax rate rising to 0.9% [prnewswire.com].
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