The Tax Man Cometh: Property Taxes on the Rise in Large Metros MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent
Becoming a homeowner is a wonderful thing, but there is a piper to pay: property taxes. Median property taxes in the U.S. rose by an average of ten point four percent between 2021 and 2023, the latest year of available data, according to a new analysis by LendingTree. Property taxes vary widely across the fifty largest metros, from a low of one thousand and ninety one dollars to almost ten times that (nine thousand nine hundred and thirty seven dollars).
Lending Tree’s analysis revealed these key findings:
- Homeowners pay a median property tax of two thousand nine hundred and sixty nine dollars annually, or about two hundred and forty seven dollars a month. Homeowners without a mortgage paid a median of two thousand four hundred and seventy four dollars in property taxes, while those with a mortgage paid a higher median of three thousand three hundred and forty three t eight hundred and sixty nine dollars more.
- Property taxes increased in each of the fifty largest metros between 2021 and 2023. In eleven metros, the increase was lower than the national average of ten point four percent. The three metros with the lowest increases are Pittsburgh (four point four percent), Philadelphia (eight point two percent), and Milwaukee (eight point three percent). In contrast, Tampa (twenty three point three percent), Indianapolis (nineteen point eight percent), and Dallas (nineteen percent) saw the highest property tax increases.
- At one thousand and ninety one dollars, Birmingham, AL has the lowest median property taxes of the fifty largest metros. Memphis and Louisville followed at one thousand eight hundred and fifty six dollars and one thousand nine hundred and twelve dollars, respectively. Despite both being among the lowest, Birmingham’s property taxes are forty one point two percent lower than Memphis’.
- New York, San Jose, and San Francisco have the highest median property taxes. The median amounts: New York (nine thousand nine hundred and thirty seven dollars), San Jose (nine thousand five hundred and fifty four dollars), and San Francisco (eight thousand one hundred and fifty six dollars). Among the ten metros with the highest property taxes, four are in California and two are in Texas.
- Among the large metros, Birmingham and Phoenix pay the smallest percentage of their home value in property taxes. Homeowners in these metros each have an effective tax rate of point forty eight percent, ahead of Las Vegas and Denver at point fifty percent. Conversely, the highest rates are in Buffalo (two point eleven percent), Chicago (two point eight percnet), and Cleveland (one point seventy four percent).
Median Property Taxes in U.S. are $2,969 Annually
Across the U.S., homeowners pay a median property tax of two thousand nine hundred and sixty nine dollars annually—about two hundred and forty seven dollars a month. Those with a mortgage pay significantly more than those without a mortgage: a median of three thousand three hundred and forty three dollars for the former, and two thousand four hundred and seventy four dollars for the latter (eight hundred and sixty nine dollars less).

“It may not seem like an earth-shattering amount of money, but that equates to about seventy to seventy five dollars a month that can’t go toward paying bills or reaching other financial goals,” said Matt Schulz, LendingTree chief consumer finance analyst and author of Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life. “It’s an even bigger deal when you also have a mortgage.”
Households without a mortgage are two point three times more likely to pay less than eight hundred dollars in property taxes than households with a mortgage. While eighteen point. six percent of mortgage-free households pay less than eight hundred dollars, just eight percent of mortgage holders do.
More than half (fifty four point one percent) of American households with a mortgage pay three thousand dollars or more in property taxes, versus a smaller forty one point nine percent of households without a mortgage.
Property Taxes Rose in All Large Metros
Property taxes rose by an average of ten point four percent nationally between 2021 and 2023, largely driven by rising home prices in the same time frame.
In eleven of the fifty largest U.S. metros, the increase was lower than the national average of ten point four percent. Pittsburgh saw the smallest increase, rising four point four percent. Philadelphia (eight point two percent), and Milwaukee (eight point three percent) followed.
Conversely, property taxes in Tampa jumped significantly— by twenty three point three percent, the largest by metro. Since Florida does not charge income tax, the state relies on property and sales taxes to fund projects, and those taxes will continue to rise. In 2024, voters in Hillsborough County, which includes Tampa, approved a property tax increase of one dollar per every one thousand dollars in assessed value to improve teacher pay and school programs.

Indianapolis (nineteen point eight percent) and Dallas (nineteen percent) saw the next biggest property tax jumps between 2021 and 2023.
Such increases put a strain on homeowners, Schulz said.
“Most people’s financial margin for error is so small right now, thanks to inflation and the general cost of life, that any increase may become even more difficult to manage,” he said. “And these types of increases aren’t things you can cancel like a Netflix subscription, so it’ll likely require some sacrifice to handle it.”
Metros with largest/smallest % increase in median property taxes paid (2021 to 2023):
Rank | Metro | Property taxes, 2023 | Property taxes, 2022 | Property taxes, 2021 | Percent change, 2021 to 2023 |
---|---|---|---|---|---|
1 | Tampa, FL | $2,385 | $2,185 | $1,935 | twenty three point three percent |
2 | Indianapolis | $2,029 | $1,867 | $1,694 | nineteen point eight percent |
3 | Dallas | $5,589 | $5,266 | $4,695 | nineteen percent |
4 | Jacksonville, FL | $2,401 | $2,256 | $2,022 | eighteen point seven percent |
5 | Miami | $3,570 | $3,315 | $3,011 | eighteen point six percent |
5 | Atlanta | $2,738 | $2,560 | $2,308 | eighteen point six percent |
7 | Seattle, WA | $5,832 | $5,543 | $4,927 | eighteen point four percent |
8 | San Antonio | $4,331 | $4,086 | $3,664 | eighteen point two percent |
9 | San Diego | $5,542 | $5,214 | $4,697 | eighteen percent |
10 | Charlotte, NC | $2,205 | $2,047 | $1,875 | seventeen point six percent |
Median Property Taxes Range from $1,091 to $9,937
Looking at the metros with the lowest median property taxes, Birmingham, AL comes in first at just one thousand ninety one dollars. Memphis is at a distant second, at one thousand eight hundred and fifty six dollars. Even as the two lowest, homeowners in Birmingham pay forty one point two percent less than those in Memphis. Louisville, KY rounds out the top three at one thousand nine hundred and twelve dollars.

All three metros are among those with the lowest median home values, according to a 2024 LendingTree analysis. Although Memphis has lower median home values than Birmingham, Alabama significantly limits the property tax hikes homeowners can face.
Conversely, New York homeowners pay the most in property taxes, at a whopping median of nine thousand nine hundred and thirty seven dollars. San Jose (nine thousand five hundred and fifty four dollars) and San Francisco (eight thousand one hundred and fifty six dollars) follow. Among the ten metros with the highest property taxes, four are in California (San Jose, San Francisco, Los Angeles, San Diego) and two are in Texas (Austin, Dallas). That’s understandable, given that median home values in these areas are among the highest in the nation.
Homeowners with mortgages typically pay higher property taxes in nearly all metros, except for Seattle, Salt Lake City, and Boston.
Metros with smallest/largest median property taxes:
Rank | Metro | Median paid on all homes | Median paid on homes with mortgages | Median paid on homes without mortgages |
---|---|---|---|---|
1 | Birmingham, AL | $1,091 | $1,216 | $838 |
2 | Memphis, TN | $1,856 | $2,007 | $1,516 |
3 | Louisville, KY | $1,912 | $1,999 | $1,730 |
4 | Phoenix | $1,927 | $1,974 | $1,808 |
5 | Nashville, TN | $1,976 | $2,014 | $1,904 |
6 | Las Vegas | $1,990 | $2,040 | $1,888 |
7 | Indianapolis | $2,029 | $2,112 | $1,857 |
8 | Oklahoma City | $2,053 | $2,287 | $1,667 |
9 | Charlotte, NC | $2,205 | $2,381 | $1,756 |
10 | Tampa, FL | $2,385 | $2,751 | $1,767 |
Two metros have an effective tax rate of just point forty eight percent.
Looking at property taxes as a percentage of home values, Birmingham and Phoenix tie for the lowest effective tax rate, at point forty eight percent for both. However, the median home value in Phoenix is significantly higher than that in Birmingham, at four hundred and one thousand four hundred dollars and two hundred and twenty six thousand and two hundred dollars, respectively.
Las Vegas and Denver follow at point fifty percent. While Las Vegas has a median home value of four hundred thousand and eight hundred dollars, Denver has a significantly higher median home value of five hundred seventy thousand and three hundred dollars.
Metros where homeowners pay smallest percentage of home value in property taxes:
Rank | Metro | Median home value, 2023 | Property taxes, 2023 | Effective tax rate |
---|---|---|---|---|
1 | Birmingham, AL | $226,200 | $1,091 | point forty eight percent |
1 | Phoenix | $401,400 | $1,927 | point forty eight percent |
3 | Las Vegas | $400,800 | $1,990 | point fifty percent |
3 | Denver | $570,300 | $2,873 | point fifty percent |
Meanwhile, Buffalo has the highest effective tax rate at 2.11%, with a median home value of $209,600. Chicago (2.08%, $301,900) and Cleveland (1.74%, $201,000) follow.
Metros where homeowners pay smallest/highest percentage of home value in property taxes:
Rank | Metro | Median home value, 2023 | Property taxes, 2023 | Effective tax rate |
---|---|---|---|---|
1 | Birmingham, AL | $226,200 | $1,091 | point forty eight percent |
1 | Phoenix | $401,400 | $1,927 | point forty eight percent |
3 | Las Vegas | $400,800 | $1,990 | point fifty percent |
3 | Denver | $570,300 | $2,873 | point fifty percent |
5 | Nashville, TN | $376,800 | $1,976 | point fifty two percent |
6 | Salt Lake City | $478,200 | $2,701 | point fifty six percent |
7 | Los Angeles | $825,300 | $5,621 | point sixty eight percent |
8 | Charlotte, NC | $319,400 | $2,205 | point sixty nine percent |
9 | San Diego | $791,600 | $5,542 | point seventy percent |
10 | Raleigh, NC | $381,000 | $2,712 | point seventy one percent |
Tips for Dealing with Higher Property Tax Rates
With life and property taxes getting more expensive every year, Schulz has some tips for homeowners feeling the financial pinch:
How much interest are you earning on your property tax money? “This won’t work if your property tax payments are part of your mortgage payments, but for others, setting aside your estimated property tax amount in a high-yield savings account can be a great idea,” Schulz said. “Returns are no longer at record highs, but they’re still often over four percent. That means that if you leave three thousand dollars in one of those accounts for a year, you’ll earn about one hundred and twenty dollars in interest for having done nothing more than being planful with that money and leaving it alone.”
Are you getting all the exemptions you’re qualified for? “Not everyone pays the same property taxes,” he said. “For example, those sixty five and older may be partially exempt from property taxes in many areas. Some home improvements and homesteads qualify for tax exemptions as well. Do some Googling and see what you might qualify for.”
Have you considered appealing your property tax assessment? If you believe your property taxes are higher than they should be, you can challenge the assessment with your local tax assessor” (a shockingly low number of home owners do. “Look at comparable homes in your area to see if your home is assessed higher than others with similar features.
Note: The Census Bureau uses the term “real estate tax” to define a tax charged on an “entire property (land and buildings) payable to all taxing jurisdictions, including special assessments, school taxes, county taxes and so forth.” Real estate taxes are often referred to as property taxes. The terms are used interchangeably in this study.
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The post The Tax Man Cometh: Property Taxes on the Rise in Large Metros first appeared on The MortgagePoint.
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