Median property tax bills in the U.S. increased 30% between 2019 and 2024
Illinois has the highest effective property tax rate while Hawaii has the lowest
Property taxes account for 70% of local tax collections
Several states are considering eliminating property taxes as an alternative
New York City faces a $5.4 billion budget shortfall with contentious tax proposals
📖 Full Retelling
U.S. homeowners faced a significant increase in property taxes between 2019 and 2024, with median bills soaring 30% nationwide as home values surged and local governments grappled with budget shortfalls, exemplified by New York City Mayor Zohran Mamdani's controversial proposal to sharply raise property taxes to address a $5.4 billion budget gap. Property taxes, which account for 70 cents of every dollar in local tax collections according to the Tax Foundation, have become increasingly contentious as homeowners feel financially squeezed. While states like Illinois boast the highest effective property tax rates in the nation, others such as Florida, Georgia, and North Dakota are considering radical solutions by proposing to eliminate property taxes altogether. The financial pressure on homeowners has amplified calls for reform, with Tax Policy Center senior research associate Thomas Brosy noting that 'property taxes rise with home values, homeowners may fear being squeezed by larger tax bills.' The geographical disparities in property taxation are stark, with New York County (Manhattan) among the 16 U.S. counties with the highest median property tax payments, where typical homeowners pay more than $10,000 annually. Other high-tax jurisdictions include eight counties in New Jersey, five additional New York counties, Falls Church City in Virginia, and Marin County in California. However, Mamdani's proposal faces significant political obstacles, with New York Governor Kathy Hochul rejecting both a wealth tax and higher property taxes, and New York City Council Speaker Julie Menin dismissing the plan as a non-starter, leaving the budget crisis unresolved.
🏷️ Themes
Property Taxation, Financial Burden, Government Budgets, Regional Disparities
New York, often called New York City (NYC), is the most populous city in the United States. It is located at the southern tip of New York State on New York Harbor, one of the world's largest natural harbors. The city comprises five boroughs, each coextensive with its respective county.
Manhattan is the most densely populated and geographically smallest of the five boroughs of New York City. Coextensive with New York County, Manhattan is the smallest county by area in the U.S. state of New York, and one of the smallest in the United States. Located almost entirely on Manhattan Isla...
California () is a state in the Western United States that lies on the Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares an international border with the Mexican state of Baja California to the south. With almost 40 million residents across an area of 163,696 ...
Florida ( FLORR-ih-də; Spanish: [floˈɾiða] ) is a state in the Southeastern and South Atlantic
regions of the United States. It borders the Gulf of Mexico to the west, Alabama to the northwest, Georgia to the north, the Atlantic Ocean to the east, the Straits of Florida to the south, and The Bahama...
Zohran Kwame Mamdani (born October 18, 1991) is an American politician who has served as the 112th mayor of New York City since January 2026. A member of the Democratic Party and the Democratic Socialists of America, Mamdani served from 2021 to 2025 as a member of the New York State Assembly for the...
Property taxes are a major source of local revenue and affect homeowners' budgets. Rising rates can strain households and influence political decisions, making the distribution across counties and states a key issue for residents and policymakers.
Context & Background
Property taxes fund local services such as schools and roads
Median U.S. property tax bill rose 30% from 2019 to 2024
Illinois has the highest effective rate while Hawaii has the lowest
What Happens Next
States such as Florida, Georgia and North Dakota are proposing to eliminate property taxes for homeowners, while other jurisdictions may consider reforms or caps. The debate will likely intensify as home values continue to climb and budget deficits persist.
Frequently Asked Questions
Why do property taxes vary so much between counties?
They depend on local assessed values, tax rates set by municipalities, and the services they fund.
What options do homeowners have to reduce their property tax burden?
Homeowners can appeal assessments, apply for exemptions, or support local tax reform proposals.
Original Source
MoneyWatch See where U.S. homeowners pay the highest property taxes by county and state By Aimee Picchi Aimee Picchi Associate Managing Editor, MoneyWatch Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports. Read Full Bio Aimee Picchi February 20, 2026 / 5:00 AM EST / CBS News Add CBS News on Google Property taxes around the U.S. have long been a lightning rod for debate, with political leaders perpetually balancing the need to fund their budget priorities against the risk of alienating homeowners and businesses. This week, for example, New York City Mayor Zohran Mamdani sparked an uproar by proposing to close a budget hole by sharply raising property taxes . Although the move was widely interpreted as a political gambit aimed at spurring state lawmakers to hike taxes on wealthy New Yorkers and corporations, the backlash highlights the sensitivities around property taxes at a time many Americans already feel financially strapped. Such taxes — levied mostly by local governments to raise revenue for services including public schools, road construction, and police and fire departments — account for 70 cents of every $1 in local tax collections, according to the nonpartisan Tax Foundation. But as home values surge nationwide, tax assessments also have risen, leading to higher property taxes in many parts of the U.S. At the same time, states such as Florida, Georgia and North Dakota are taking the opposite tack by proposing to eliminate property taxes for homeowners. Read on to see how property taxes compare across U.S. states and counties. "Surging home values have amplified calls to cut or even abolish the property tax," wrote Tax Policy Center senior research associate Thomas Brosy in a September blog post. "Because property taxes rise with home values, homeowners may fear being squeeze...
