ATTOM Data has released property tax data for 87 million single-family homes, revealing that the amount levied in 2022 is estimated to be $339.8 billion, indicating a 3.6% increase from the previous year’s $328 billion. This year’s growth rate is twice that of the 1.6% increase in 2021 but is still lower than the 5.4% growth rate recorded in 2020.
According to ATTOM’s report, the average tax on single-family homes in the US rose by 3% in 2022 to reach $3,901, following a 1.8% increase in the previous year. This resulted in an effective tax rate of 0.83% nationwide, which is slightly lower than the 0.86% recorded in 2021 and the lowest it has been since at least 2016
In preparing its report, ATTOM relied on property tax information obtained from county tax assessor’s offices, as well as the automated valuation model to determine the value of the single-family homes. The report calculated the effective tax rate as the average yearly property tax expressed as a percentage of the average estimated market value of homes in each specific geographic location.
ATTOM has reported that despite an increase in total taxes in 2022, effective tax rates continued to decline due to the fact that home values increased at a faster pace than taxes across the country. Even though the housing market boom of the past decade slowed down in 2022, the average estimated value of single-family homes still went up by 7.9% over the year. This increase outpaced the average tax increase, leading to a slight reduction in effective rates.
According to Rob Barber, CEO of ATTOM, property taxes experienced a steady increase last year, with significant differences persisting between various regions in the country. These disparities are associated with differing expenses, services, and tax bases. However, overall, the increase was moderate. Barber further noted that local governments and school systems will encounter even more challenges in maintaining low taxes this year. This is due to the rise in inflation rates and an increase in the number of commercial properties that may be eligible for tax reductions after experiencing a high rate of vacancy during the pandemic.