New Jersey tops US property tax list at $9,413 as southern states push relief

American homeowners continue to face steep and rising property tax bills, with a new analysis showing New Jersey once again topping the list for the highest median property tax payments in the country, an eye-watering $9,413 per year. By contrast, many southern states remain relative havens for taxpayers, with bills often under $1,500. According to Fox Business News, citing the latest data from Realtor.com, property taxes remain one of the largest ongoing costs of owning a home in the United States. They fund essential local services ranging from public schools and road maintenance to police and fire departments.

But they’re also highly variable, depending on where you live and how much your home is worth. Realtor.com’s data shows that local tax rates, frequent property revaluations, and fast-rising home values have been pushing bills even higher for most Americans. “The issue facing many homeowners is that property taxes are growing due to increased home values and changes to local tax rates,” explained Joel Berner, senior economist at Realtor.com, in an April report quoted by Fox Business.

Nationwide, median tax bills keep climbing

Nationally, property tax bills have been on an upward march. Realtor.com found that the typical US property tax bill rose 2.8 per cent between 2023 and 2024, with more than 73 per cent of properties seeing increases. The median tax bill nationwide now sits at $3,500. Much of this rise is directly tied to soaring home prices. As property values get reassessed, sometimes annually, owners see their bills increase even if tax rates themselves stay flat.

But homeowners are not powerless. Berner pointed out that many Americans don’t realise they can appeal the valuation their local governments assign to their homes. Realtor.com estimates that over 40 per cent of properties could save at least $100 by contesting their assessment, with a typical saving of more than $500. “Many homeowners may not realize they can protest their home’s value assessment,” Berner said. “In fact, over 40% of properties nationwide could save at least $100 by protesting.”

Political heat around property taxes

Property taxes have become a major political flashpoint across the US. Critics argue that they effectively force homeowners to “pay rent” to the government for property they already own. Fox Business cited a Pennsylvania legislator who called for their complete elimination on these grounds. And in Florida, Republican Governor Ron DeSantis has revived his proposal to entirely scrap property taxes in the state, a move that would make Florida the only US state with neither property nor state income tax.

“We want to make Florida the freest state for families to own a home without worrying about punishing taxes,” DeSantis said recently, per Fox Business.

Northeast leads the country in high bills

Unsurprisingly, many of the states with the highest property taxes are in the Northeast, where home values are often higher, and local governments rely heavily on property taxes to fund schools and infrastructure.

Here are the top five states with the highest median property tax bills, according to Realtor.com data reported by Fox Business News:

Southern states offer relief

By contrast, many southern and midwestern states offer far lower property tax burdens. Alabama, for instance, has the lowest median bill in the country at just $804. West Virginia ($728) and Arkansas ($725) are close behind. These states generally combine lower home prices with less reliance on property taxes to fund local services.

Below is a quick look at the five states with the lowest median property tax bills:

A rising national debate

Beyond individual wallets, property taxes are becoming a central policy debate in America’s ongoing struggle with affordability. Housing costs, both in terms of purchase prices and ongoing expenses like taxes and insurance, have soared over the past decade.

While property taxes fund critical local services, they can also price people out of their homes, especially retirees on fixed incomes or lower-income families in rapidly gentrifying neighbourhoods.

Calls to overhaul the system are growing louder. Some policymakers propose capping annual assessment increases; others want to diversify local government funding away from property taxes entirely.

For now, homeowners will continue to watch their assessments and their tax bills closely.