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The property tax burden across the country is rising, adding to the affordability crisis homeowners face.
Nationwide, the average single-family homeowner saw their tax bills spike by 3 percent year over year, according to research firm Attom. That works out to an increase of $4,427 for the average home valued at $494,231. Meanwhile, the country’s effective tax rate inched up to 0.9 percent in 2025 from 0.86 percent in 2024. It’s the highest rate since 2020.
The tax hikes appear to be most persistent in the top urban areas. About 92 percent of the top 50 metros recorded increases in their effective tax rates from 2024 to 2025, with the average effective rate for this group coming in at 0.98 percent.
The rise in property taxes comes amid persistent affordability concerns and faltering property values. Last year, the average home value in the U.S. fell 1.7 percent year over year to $494,231, according to Attom.
Among the 10 most populous metropolitan areas in the country, Atlanta’s effective tax rate — the average yearly property tax expressed as a percentage of the average estimated market value — surged the most year over year, by more than 15 percent, according to an analysis by The Real Deal of Attom’s data.
However, Atlanta’s effective tax rate of 0.88 percent is not the highest among the top 10 metros. That honor belongs to Chicago, which has long struggled with inconsistent tax rates. The effective tax rate in Chicagoland is 1.78 percent, an increase of more than 6 percent from 2024.
The effective tax rate in the New York metro area, the most populous in the country, edged up just 0.2 percent year over year in 2025 — the lowest increase among the top 10 urban areas in the country.
Compounding affordability concerns, inflation also rose 3.3 percent year over year, the Bureau of Labor Statistics reported on Friday. The increase largely stemmed from an almost 11 percent spike in energy costs due to the war with Iran.