Bold reality check: property taxes are a lightning rod in every state, and rising home values are turning welcome funding into a pressure point for homeowners.
Property taxes, largely collected by local governments to pay for schools, roads, and public safety, are a persistent source of political tension. This week, New York City Mayor Zohran Mamdani alarmed many by proposing a sharp property tax increase to close a budget gap. The proposal was interpreted by many as a political move intended to push state lawmakers to raise taxes on wealthy residents and corporations, but it also underscored how sensitive homeowners are to even the hint of higher bills.
Taxes like these are a major revenue stream for local governments, contributing about 70 cents of every dollar in local tax collections. They fund essential services from public schools to infrastructure and emergency services. Yet as home values climb across the country, assessments rise too, pulling property tax bills higher in many areas. At the same time, some states, including Florida, Georgia, and North Dakota, are exploring or implementing policies to reduce or eliminate property taxes for homeowners.
Here’s how property taxes stack up across states and counties. The Tax Policy Center notes that surging home values have intensified calls to cut or abolish the property tax, since bills tend to grow as property values rise, leaving homeowners feeling financially squeezed. A senior research associate, Thomas Brosy, highlighted that the median property tax bill in the United States rose about 30% from 2019 to 2024.
According to the Tax Foundation, Illinois currently has the highest effective property tax rate among states, while Hawaii has the lowest. In New York City, the tax situation is acute: the city faces a $5.4 billion budget shortfall and the mayor’s proposal to raise taxes on high earners or homeowners has sparked significant controversy and pushback. Governors and local leaders have shown resistance to wealth taxes or higher local property taxes, and figures such as New York Governor Kathy Hochul and NYC Council Speaker Julie Menin publicly disagreed with the mayor’s approach, making the plan seem unlikely to pass.
Manhattan’s home county status is not new to this conversation. New York County is already among the 16 counties with the highest median property tax payments, where the typical homeowner pays more than $10,000 annually. Other counties in the upper tier include eight counties in New Jersey, five additional counties in New York, Falls Church City in Virginia, and Marin County in California.
In short, the debate over property taxes remains heated as values rise and policymakers weigh how best to fund essential services without overburdening homeowners. If you’re curious about how your own county stacks up or what changes might be on the horizon, share your thoughts: Do you think higher taxes on wealthier residents or on homeowners is the right path, or should alternatives like targeted spending cuts or new revenue sources be pursued?
Edited by Alain Sherter and Taylor Johnston for CBS News.
For more, see the Property Taxes topic pages at CBS News.
