Property taxes in the United States have seen a significant increase, totaling $363 billion in 2023, marking a nearly seven percent rise from the previous year and representing the most substantial surge in the past five years. An analysis conducted by real estate data analytics firm ATTOM, utilizing data from approximately 89.4 million homes, revealed that this increase in property taxes from 2022 to 2023 is nearly twice the growth rate observed from 2021 to 2022. The average household owning a single-family home paid about $4,062 in property taxes during this period, but several counties experienced significantly higher burdens; notably, 21 counties recorded average property tax payments exceeding $10,000, with the highest being Essex County, New Jersey, where homeowners paid an average of $13,145.
The principal reason for the sharp rise in property taxes is attributed to various “inflationary pressures” that affect local governments and educational institutions. This information, as reported by ATTOM’s CEO Rob Barber, highlights that significant increases in effective tax rates arise amid substantial disparities in tax assessments across different regions. He noted that disparities are largely influenced by the diverse levels of government services provided and the existence of smaller municipalities that control their local governments and educational systems independently, leading to increased operational and administrative costs.
The effects of rising property taxes come amid broader financial considerations for homeowners. Forbes finance reporter Natalie Campisi expressed concern that many homeowners who have not anticipated these tax increases may experience financial strain, especially around tax time. This increasing tax burden particularly affects high-tax states such as New Jersey. The state has the distinction of imposing the highest average property taxes in the country, a situation compounded by legislation passed in 2020 that enabled illegal immigrants to obtain well-paying licensed jobs, further stressing the fiscal landscape.
Governor Phil Murphy of New Jersey faces pressures stemming from both rising property taxes and the influx of migrants enabled by his administration’s policies. While initially supportive of integrating undocumented residents into the workforce through Senate Bill 2455, which allowed them to secure professional licenses, he has since expressed concerns about the overwhelming demand for welfare and support services in the state. This shift in tone reflects a growing strain on the state’s resources as officials struggle to balance support for both residents and newcomers amid the challenges of inflated property tax rates and escalating state costs.
Despite a deep political preference for Democratic leadership in New Jersey, recent polling indicates growing disenchantment among voters—across party lines—with the immigration policies implemented by the Biden-Harris administration. As New Jersey residents face rising costs, including property taxes, public sentiment is shifting, revealing a diminishing tolerance for the perceived failures of the state’s welfare system, particularly in relation to supporting an increasing migrant population while managing high tax liabilities. The combination of these factors paints a complex picture of public discontent as residents grapple with the realities of their financial obligations amid broader socioeconomic pressures.
Overall, the spike in property taxes is emblematic of larger trends affecting homeowners across the United States, with inflation and government policy playing significant roles in shaping the financial landscape. As municipalities and states accommodate growing operational costs while striving to provide essential services, homeowners may find themselves at the mercy of rising tax bills, leading to increased scrutiny of local and national policies. The confluence of rising property taxes, immigration policy challenges, and fiscal pressures creates a pressing need for revisiting tax frameworks and support systems for long-term sustainability, echoing broader concerns about government accountability and economic stability.