Homeowners cannot avoid the inevitable property tax bill—and those in four states can expect their bill to be higher this year. In particular, homeowners in Maryland, North Carolina, Oklahoma, and Tennessee will be footing a higher bill.
Property taxes are also growing due to increased home values and changes to local tax rates, a new report from Realtor.com® has found. The median tax bill in the U.S. in 2024 was $3,500, up 2.8% from 2023. This is mostly due to home price appreciation, with the median home value increasing by 2% over the same period—and 59.5% of properties nationwide had their assessment values go up.
“Interestingly, 23.4% of properties saw their tax bill go up from 2023 to 2024 without their assessment value increasing, suggesting a tax rate hike independent of home valuation,” says Realtor.com senior economist Joel Berner.
Tax growth also varies widely from state to state, including some states where tax burdens are outpacing home price growth and others where property taxes are falling even as homes appreciate in value, the report found.
How much you pay in property taxes depends on a variety of factors. First, location. All states have property taxes, and much of the time, the amount is dictated by the city or county in which you own property. States allow local jurisdictions to impose their own property taxes, in addition to any state-level property taxes that a state might have.
Property taxes are used to fund local services like schools, police and fire departments, local government, and roads.
Property taxes are paid annually, semiannually, or quarterly every year. The amount is a percentage of the assessed value of one’s property, which includes land and structures. The amount a person will pay varies by jurisdiction. These taxes are usually the largest source of revenue for state and local governments.
If you’re trying to gauge an average amount of how much you’ll owe, you can multiply your property tax rate by the current market value of your property.
You have the option to appeal your property tax, and it’s important to check with your local government for the deadline to do just that.
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Here’s a look at some states increasing or planning to increase property taxes in 2025:
1. Maryland
In Maryland, property values are reassessed every three years, and a new wave of counties will be assessed. The counties are part of Group 1 and include Somerset, Washington, Wicomico, and Worcester.
2. North Carolina
Some counties in North Carolina could potentially see higher property tax bills after property values in certain counties rose in value. A tax office surveyed 21 counties, and it revealed property values are up between 25% to 88% in the past few years. This will result in a homeowner receiving a higher tax bill.
3. Oklahoma
State law requires a new assessment each year on Jan. 1. In Tulsa County alone, the assessor said he expects 80% of homeowners to see an increase. Meanwhile, Oklahoma lawmakers have been working to provide tax reform so that it can attract residents to their state, instead of losing them to neighboring states with lower taxes.
The state has an average property tax rate of 0.85%. That’s on the low end, but some of its neighbors have cheaper rates, including Arkansas (0.57%), Louisiana (0.55%), Colorado (0.49%), according to taxfoundation.org.
4. Tennessee
Residents, depending on their county, are set to see a property tax increase. The state goes on a four-year cycle for reappraisals, and several Tennessee counties are up this year. Three of the four largest counties, Davidson, Hamilton, and Shelby, are conducting their state-mandated reassessment, which was last done in 2021.
Taxing times
In Florida, there are no major changes, but homeowners are keeping a close eye on any developments between Gov. Ron DeSantis and Florida lawmakers. The governor has proposed eliminating state property taxes, but it’s a plan that would require local government funding reform. Florida joins Illinois, Kansas, and Pennsylvania in the states that have proposals to eliminate property taxes.
If your state didn’t make the list of property tax increases in 2025, you might not be in the clear. Town, city, and county governments can collect their property taxes. That means they’ll do their own assessments and have their own processes for collecting property taxes.
Among the states with homeowners paying the highest property taxes in 2024 were New Jersey, Illinois, Connecticut, New Hampshire, and Texas.
If you feel your home has been incorrectly assessed, you can appeal your property tax bill. Keep in mind, you might see an increase in your property tax bill if your local government voted for a tax hike or your home value has increased. If you are ready to appeal, check for any mistakes on your bill that might inflate the cost of your home. You’ll need to research comparable homes in your neighborhood—they should reflect similar properties to yours—and file an abatement request. You can also hire an expert, and you can even check for any property tax relief programs.
Property taxes are deductible from federal income tax, but the deductions face a cap, which can affect property owners in high-tax states.
