Charles Esther
For many Americans, buying a home is a major milestone.
But while high mortgage rates and home prices get most of the attention, property taxes can be an equally weighty burden.
LendingTree analysed data from 2021 to 2023 in the 50 largest US metropolitan areas and revealed significant increases in property tax bills.
According to the report, property taxes rose by 10.4% nationwide during this two-year period.
The median homeowner now pays $2,969 annually — or about $247 monthly — in property taxes.
In some metros, however, the total can run thousands of dollars higher.
Why Property Taxes Are Rising
Property taxes are calculated based on a home’s assessed value, and that figure is subject to change.
Values can rise due to home improvements, booming real estate markets, or updates in local tax rates.
These factors combined have led to a steady upward trend in taxes, even for longtime homeowners.
Cities with the Largest Property Tax Hikes
The biggest jump in property taxes was seen in Tampa, where taxes rose 23.3% from 2021 to 2023.
Other metro areas with large increases include:
- Indianapolis: +19.8%
- Dallas: +19%
- Jacksonville: +18.7%
- Atlanta and Miami: both at +18.6%
5 US Cities with the Lowest Property Taxes
LendingTree’s study highlights that Southern cities, known for their lower cost of living, often have the cheapest property tax rates.
Here are the five metros with the lowest property tax bills in 2023:
Birmingham, Alabama
- Median Property Taxes: $1,091
- Change (2021–2023): +13.4%
- Median Home Sale Price: $213,250
- Metro Population: 196,644
Memphis, Tennessee
- Median Property Taxes: $1,856
- Change (2021–2023): +8.9%
- Median Home Sale Price: $180,000
- Metro Population: 618,639
Louisville, Kentucky
- Median Property Taxes: $1,912
- Change (2021–2023): +14.5%
- Median Home Sale Price: $248,500
- Metro Population: 246,161
Phoenix, Arizona
- Median Property Taxes: $1,927
- Change (2021–2023): +13.3%
- Median Home Sale Price: $470,225
- Metro Population: 1,650,070
Nashville, Tennessee
- Median Property Taxes: $1,976
- Change (2021–2023): +14%
- Median Home Sale Price: $470,200
- Metro Population: 687,788
5 US Cities with the Highest Property Taxes
On the opposite end, cities in the Northeast and on the West Coast—where real estate is expensive—have the highest tax bills.
Here are the five metros with the most expensive property taxes in 2023:
New York City, New York
- Median Property Taxes: $9,937
- Change (2021–2023): +11%
- Median Home Sale Price: $852,500
- Metro Population: 8,258,035
San Jose, California
- Median Property Taxes: $9,554
- Change (2021–2023): +16.5%
- Median Home Sale Price: $1,444,000
- Metro Population: 969,655
San Francisco, California
- Median Property Taxes: $8,156
- Change (2021–2023): +16.5%
- Median Home Sale Price: $1,392,750
- Metro Population: 808,988
Austin, Texas
- Median Property Taxes: $6,973
- Change (2021–2023): +13.8%
- Median Home Sale Price: $512,500
- Metro Population: 979,882
Boston, Massachusetts
- Median Property Taxes: $6,696
- Change (2021–2023): +10.2%
- Median Home Sale Price: $858,000
- Metro Population: 653,833
What This Means for Homebuyers
For new buyers, property taxes are a critical — and often underestimated — piece of the cost puzzle.
Even if you’re not taking out a mortgage, these recurring charges can add up quickly and put pressure on your monthly budget.
High taxes in pricey areas like New York City and San Jose mean homeowners must plan carefully.
In contrast, more affordable metros like Birmingham or Memphis may offer financial relief through lower ongoing housing expenses.
Final Takeaway
If you’re buying a home, don’t just look at the purchase price.
Property taxes can vary drastically depending on where you live, and they can rise significantly over time.
Always factor them into your long-term budgeting — because even after you’ve paid for your home, the bills keep coming.
