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Homeowners saw their property taxes take a big leap last year

April 8, 2021. Summarized by summa-bot.

Compression ratio: 63.9%. 2 min read.

Middle class home in Midwest America. (Photo by: Jim Lane/Education Images/Universal Images Group via Getty Images)

Homeowners across the US saw their property tax bill get significantly more expensive last year.

Total property taxes levied on single-family homes in 2020 were $323 billion, up 5. 4% from the year before, the biggest average increase in four years, according to an analysis of 87 million US homes by ATTOM Data Solutions, a property information firm.

The average property tax for a single-family home was $3,719, up 4. 4% from $3,561 in 2019.

"Homeowners across the United States in 2020 got hit with the largest average property tax hike in the last four years, a sign that the cost of running local governments and public school systems rose well past the rate of inflation," said Todd Teta, chief product officer for ATTOM Data Solutions.

To determine the property tax estimates, the report looked at property tax data collected from county tax assessor offices nationwide at the state, city and county levels, along with estimated market values of single-family homes.

Because property tax rates vary so widely, a common way to compare tax rates is to look at the effective tax rate.

An effective tax rate looks at how much a homeowner pays in taxes compared to the value of their home.

Across the US, the report found that the effective property tax rate -- an estimate of the average percentage of a property's value that is paid annually in taxes -- was 1. 1% in 2020, down slightly from 1. 14% in 2019.

States with the highest effective property tax rates in 2020 were New Jersey at 2. 2%, followed by Illinois at 2. 18%, Texas at 2. 15%, Vermont at 1. 97% and Connecticut at 1. 92%.

States with the lowest effective property tax rates last year were Hawaii at 0. 37%, Alabama at 0. 44%, West Virginia at 0. 51%, Colorado at 0. 54% and Utah at 0. 54%.

New Jersey was also the state with the highest average property tax on a single-family home, at $9,196.

More than half of the cities that the report looked at showed property tax rates increasing faster than the national average.

There were 16 counties that had average annual property taxes of more than $10,000, including 12 in the New York City area.

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