In recent years, real estate taxes have exhibited a significant upward trend. Between the pre-pandemic period and last year, the national median annual tax surged by 23%, climbing from $2,480 in 2019 to $3,045 in 2023. This increase has been observed across all states, with each one recording a rise in the annual median tax paid on real estate over this period.
Understanding property tax trends is important for both REALTORS® and home buyers, as these can make up a sizable portion of homeowners' budgets. The proportion of median annual tax as a percentage of median annual household income averaged 4% over the last decade.
In this analysis, we investigate data on the median annual real estate taxes paid across states and counties, using the 2023 American Community Survey (ACS) 1-year Public Use Microdata Sample (PUMS) files from the U.S. Census Bureau. An analysis of the counties uncovers some interesting variations in local tax behavior.