Summary: Property taxes are rising faster than many homeowners can budget, with 76% of U.S. homeowners reporting bills higher than expected . Some states have seen increases exceeding 75% over six years . While relief programs exist, 74% of homeowners have never appealed their assessment—often because they don’t know they have the right . This article examines the causes, impacts, and strategies for managing rising property tax burdens.
The property tax bill arrives with predictable regularity. What has become less predictable is the number on that bill. Across the United States, homeowners are opening their tax statements to find increases that strain household budgets and, in some cases, force difficult decisions about whether they can afford to stay in their homes.
A March 2026 survey of 2,500 U.S. homeowners found that 76% said their recent property tax bills were higher than they budgeted—a 10-percentage-point jump from 2025 . Sixty-four percent reported being “surprised or shocked” by their latest bill . This is not a localized phenomenon but a national trend reshaping the financial landscape of homeownership.
The Scope of the Problem
The numbers tell a clear story about the growing burden. According to ATTOM data, the average U.S. property tax bill rose to $4,172 in 2024, a 2.7% annual increase . While that percentage may seem modest, the cumulative effect over multiple years—combined with rising home values—has created significant pressure on household budgets.
Census Bureau figures show median monthly owner costs for mortgaged homeowners climbed to $2,035 in 2024, up from $1,960 the year before, even after adjusting for inflation . First American reported that 16.9 million U.S. homeowners were spending more than 30% of their income on housing by 2023—the highest burden in over a decade—with rising insurance premiums and property taxes cited as key drivers .
Tennessee’s Dramatic Rise
Some states have seen extraordinary increases. An analysis from the Beacon Center of Tennessee found the Volunteer State had the highest percentage increase of any state over a six-year period, standing alone as the only state with an increase exceeding 75% . Tennessee is one of only four states without any form of statewide property tax limitation, allowing local governments to approve significant rate hikes .
The local impact can be staggering. In Mt. Juliet, Tennessee, the city property tax rate increased from 11 cents per $100 of assessed value to 28 cents—a roughly 155% increase over two years . While individual homeowner bills vary based on assessed property value, such rate jumps translate into real financial pain for families.
The Massachusetts Fight
In South Hadley, Massachusetts, residents are engaged in a heated battle over proposed tax increases. A single-family home valued at about $417,000 could see its annual property taxes spike from $5,639 to more than $7,400 under one proposal . The fight has become so intense that campaign signs for both sides have been stolen from lawns, with local police issuing a warning that “stealing signs won’t change minds, just your criminal record” .
Stephen Frantz, an 82-year-old resident, told the Wall Street Journal that the tax hike could force him out of the home he cherishes: “Absolutely devastating. I love the house” .
Why Are Property Taxes Rising?
Several factors are driving the increase in property tax bills:
Rising Home Values: As property values appreciate, assessments increase. In states with assessment caps, the gap between what longtime residents pay and what newcomers pay has widened dramatically. In Miami, someone who bought a home last year paid a median property tax bill of $10,024—over three times the $3,166 bill of someone who had stayed in their home for 12 years .
Local Budget Pressures: Municipalities are facing rising costs for schools, infrastructure, and public services. When state funding falls short, local governments often turn to property taxes—their primary revenue source.
Reappraisals: After countywide property reappraisals, local governments calculate a certified tax rate designed to generate approximately the same amount of revenue as before. However, elected officials can vote to set a rate above that revenue-neutral level, resulting in tax increases even without rate hikes .
The Knowledge Gap: Homeowners Don’t Know Their Rights
Perhaps the most striking finding from the Ownwell survey is the widespread lack of awareness about the right to appeal property tax assessments. Seventy-four percent of homeowners have never appealed their tax bill . Among those who haven’t appealed:
- 57% said they did not know they had the right to do so—up from 2025
- Many expressed uncertainty about the process
- Others lacked confidence in achieving a successful outcome or felt the effort required was too great
This knowledge gap represents a significant missed opportunity. Property tax appeals allow homeowners to challenge assessed values they believe are too high. Common reasons for appeal include:
- The valuation includes property the homeowner no longer owns
- The valuation includes property owned by someone else (such as leased equipment)
- The same property was valued twice (a double assessment)
- Assets were under-depreciated
- Property details on the record are inaccurate
The process begins when a homeowner receives a valuation notice and believes the assessed value is too high. Requesting an itemized list of property—called work papers—can reveal errors that form the basis of an appeal .
Relief Programs: Help That’s Often Unclaimed
Millions of homeowners qualify for property tax relief but never claim it . Over 9 million Americans are eligible for property tax relief programs, yet most aren’t receiving it .
Common relief programs include:
| Program Type | Description |
|---|---|
| Homestead Exemptions | Lower the taxable value of your primary residence |
| Senior Exemptions | Provide savings for older adults (usually age 62, 65, or 70+) |
| Veterans’ Exemptions | Provide relief to veterans and, in some cases, surviving spouses |
| Disability Exemptions | Assistance for homeowners with certain disabilities |
| Circuit Breaker Programs | Ensure property taxes don’t impose an excessive burden on low- and moderate-income households |
| Property Tax Freezes | Lock in a home’s value for property tax purposes, even as market value rises |
| Property Tax Deferrals | Allow eligible homeowners to delay paying taxes until the home is sold |
Depending on age, income, disability status, or veteran status, homeowners could save anywhere from $200 to $6,000 annually . In North Carolina, for example, the Elderly or Disabled Exclusion requires applicants to be 65 or older or totally and permanently disabled, with income limits of $38,800 for the applicant and spouse . The Circuit Breaker Tax Deferment Program in the same state has a higher income threshold of $58,200 and requires five years of ownership .
Policy Responses: States Take Action
The property tax issue has become a major policy priority in several states. In North Carolina, Republicans in the General Assembly have convened committees to study potential policy reforms to rein in rising property tax burdens in rapidly growing areas like Charlotte, Raleigh, and Wilmington .
The Georgia House passed House Bill 1116, which would restrict annual growth in property tax collections to the rate of inflation or 3.0%, whichever is lower. Representative Shaw Blackmon pointed out that property tax collections in Georgia doubled between 2019 and 2025 .
Texas Governor Greg Abbott is running for reelection on a six-part property tax relief package that includes limiting annual growth of local government spending to population growth plus inflation and subjecting local tax hikes to a two-thirds supermajority voter approval. “No approval, no new taxes,” Abbott said during his 2026 State of the State address .
However, such proposals face opposition. Critics argue that strict levy limits could impair local governments’ ability to provide basic services. The Texas Tribune’s Joshua Fechter contended that requiring a two-thirds majority vote would “make it easy to kill any measure aimed at providing basic services” .
What This Means for Homeowners
The rising property tax burden has real consequences for homeowners and the housing market:
Financial Strain: As property taxes consume a larger share of household income, homeowners have less money for savings, maintenance, and other expenses. The Ownwell survey found that 40% of respondents considered moving specifically because of high local tax bills .
Displacement Risk: For seniors and fixed-income households, dramatic tax increases can force sale of long-held homes. The South Hadley case illustrates how retirees may be pushed out of communities they’ve called home for decades .
Market Effects: High property taxes can dampen home values and affect buyer decisions. In growth states like Tennessee and Georgia, the tension between rapid development and tax fairness is becoming a defining political issue.
Assessment Disparities: The gap between what new buyers pay and what longtime residents pay creates inequality in the tax system. In cities with assessment caps, newcomers often face dramatically higher tax bills than their neighbors .
Taking Action: What Homeowners Can Do
Learn Your Rights: The first step is understanding that you have the right to appeal your property tax assessment. Contact your county assessor or board of review for information on deadlines, complaint forms, and evidence requirements .
Check for Errors: Review your property record for inaccuracies. Common errors include incorrect square footage, wrong property classification, or inclusion of property you don’t own.
Apply for Relief: Explore whether you qualify for homestead exemptions, senior exemptions, veteran exemptions, or circuit breaker programs. The AARP Foundation Property Tax-Aide offers a free screening tool to identify programs you may qualify for .
Consider Professional Help: While 53% of those who appealed handled it themselves, 19% used a tax firm or online resource, and 17% hired a lawyer . Seventy-three percent of homeowners express at least some trust in a third-party service to handle an appeal on their behalf .
Attend Local Meetings: Property tax rates are set by local governments. Attending budget hearings and tax rate meetings allows you to understand how your tax dollars are spent and voice concerns .
Frequently Asked Questions
1. Why are property taxes rising so quickly across the U.S.?
Rising home values are the primary driver. In states with assessment caps, property values reset at sale, meaning new buyers often face much higher tax bills than longtime residents. Local governments also face increasing budget pressures for schools and public services.
2. What is the average property tax bill in the U.S.?
The average U.S. property tax bill rose to $4,172 in 2024, a 2.7% annual increase . However, this varies widely by state and county.
3. Can I appeal my property tax assessment?
Yes. All homeowners have the right to appeal their property tax assessment. The process typically involves filing a formal appeal with your county board of review by a specific deadline .
4. How do I know if I’m paying too much in property taxes?
Compare your assessment to similar properties in your area. Request an itemized list of property—called work papers—from your assessor to check for errors .
5. What relief programs are available for property taxes?
Programs include homestead exemptions, senior exemptions, veteran exemptions, disability exemptions, circuit breaker programs, property tax freezes, and deferrals .
6. Do I qualify for senior property tax relief?
It depends on your state and local rules. Most senior programs require age 62, 65, or 70+ and may have income limits. You typically need to apply and provide proof of age, income, and property ownership .
7. What happens if I don’t pay my property taxes?
Local governments can place a tax lien on your property and, in extreme cases, foreclose to collect unpaid taxes. Some relief programs allow deferral until the home is sold.
8. How do assessment caps affect new buyers?
In states with assessment caps, property values reset at sale. New buyers often face dramatically higher tax bills than neighbors who have owned their homes for many years .
9. Can renters qualify for property tax relief?
In some states, yes. A small number of programs are available to renters, though most are designed for homeowners .
10. How can I find out about property tax relief programs in my state?
Contact your county tax assessor, treasurer, or revenue office. The AARP Foundation Property Tax-Aide also offers a free screening tool to identify programs you may qualify for .
Financial Resilience in a Rising-Tax Environment
The property tax system is complex, and it’s changing in ways that put more pressure on homeowners. But understanding the system is half the battle. Whether through appealing an assessment, claiming a relief program, or engaging with local policymakers, homeowners have more control than they may realize. The best time to address a property tax issue is before it becomes a financial crisis—and the resources to do so are more accessible than most people think.
Key Takeaways:
- Property taxes are rising faster than many budgets can absorb—76% of homeowners report higher-than-expected bills .
- Most homeowners have never appealed—74% haven’t, often because they don’t know their rights .
- Millions qualify for relief but don’t claim it—over 9 million Americans are eligible for property tax relief programs .
- Assessment errors are common—review your property record for inaccuracies that could lower your bill .
- Policy reform is happening—states are considering levy limits and voter approval requirements .
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