According to a new analysis from real estate data firm ATTOM, the average homeowner paid $4,427 in property taxes last year, up 3.7% from 2024. By comparison, the Consumer Price Index rose only 2.7% last year.
Homeowners in some states faced considerably larger property tax increases, including an 18% hike in Delaware and an 11.6% jump in Maryland.
Local governments typically levy property taxes to raise revenue for public services including public schools, road construction, and police and fire departments. They account for 70 cents of every dollar in local tax collections, according to the nonpartisan Tax Foundation.
Property taxes rose last year even as the average estimated value for single-family homes dropped 1.7% to $494,231. This shows property taxes are influenced by factors other than property assessments, with some local governments hiking taxes due to the rising cost of providing public services.
Believe it or not, Illinois was in the middle of the pack when it came to tax hikes. Those details include…
Kentucky 7.7%
Missouri 5.5%
Iowa 3.1%
Illinois 1.5%
Indiana -0.1%
Wisconsin -0.4%
The local results show that property owners paid an average tax of…
Lake County $10,895
DuPage County $9,900
Will County $8,410
Crook, sorry Cook County $7,566
While property taxes rose in 40 states and the District of Columbia last year, they fell in 10 states, mostly in the West, according to the ATTOM analysis. Those declines reflect a push in some states to reduce property taxes.
Wyoming lawmakers, for example, approved a 25% cut for properties valued at up to $1 million. About 8 in 10 Montana homeowners got a property tax cut last year because of a new law that introduced a rebate and a tiered tax system.
Homeowners in the Northeast, California and Illinois typically pay the most in property taxes, with the average New Jersey homeowner paying about $10,500 a year. The lowest property taxes were in West Virginia, with an average levy of $1,081 per home.
Let me leave you with this…
Do those numbers surprise you? I was in shock when I read them.
They seemed low. I have clients in Lake and DuPage Counties paying $2,500 per month in property taxes.
But it’s important to realize that these are all averages. Your nice home is averaged in with the one down the street that hasn’t had work done on it since the Carter Administration.
Our taxes in Cook County are usually lower because of the solid commercial tax base here. By law, commercial properties in our county pay exactly double what a residential home valued the same would pay.
And since there are so many more commercial buildings in Cook County rather than those present in neighboring counties, our taxes are generally rather low.
But are your taxes low enough? Maybe not.
Employing a tax attorney to consistently fight them every year is always a good idea. If you don’t have a good one, give me a call.
Mine is the best.
As always, if you’re having difficulties with your accounting and tax work, what are you waiting for? Call us today.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
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