US Property Tax Burden Analysis
Analysis based on 8 articles · First reported Feb 19, 2026 · Last updated Feb 19, 2026
The analysis highlights the growing burden of property taxes on homeowners across the United States, which can influence housing market dynamics and consumer spending. For state and local governments, rising property tax revenues provide a stable funding source for essential services, potentially impacting municipal bond markets and public sector investment.
Dalcon Construction, using data from the United States — United States Census Bureau, conducted an analysis of property tax burdens across the United States. The report details that while the housing market is recalibrating, property taxes continue to rise, driven by lagging assessments catching up to past home value spikes. Property taxes increased by over $96 billion (13.7%) from 2022 to 2024, becoming the largest share of state and local tax revenue. Despite this, the nationwide effective property tax rate has declined over the past decade, reaching 0.888% in 2024, due to the lag in assessments. This creates disparities, with long-term homeowners benefiting from lower effective rates while new buyers face higher bills. The analysis also highlights significant variations in effective property tax rates across states, counties, and cities, with the Northeast and Midwest generally having the highest rates (e.g., United States — Illinois at 1.793%, United States — New Jersey at 1.675%) and the South and Mountain West having the lowest (e.g., United States — Alabama at 0.372%, United States — North Carolina at 0.438%). States like United States — California, United States — Florida, and United States — New York (state) have implemented assessment limits to protect homeowners.
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