Skyrocketing Taxes – Hidden Costs Slam U.S. Homeowners

Property taxes for U.S. single-family homes have surged to $363 billion in 2023, with New Jersey homeowners bearing the brunt of the increase.

At a Glance

• U.S. property taxes increased by nearly 7% from 2022 to 2023
• The average property tax for a single-family household is $4,062
• Inflationary pressures and rising government costs are cited as reasons for the tax hike
• New Jersey’s policies on undocumented immigrants are fueling debates amid rising taxes

Record-Breaking Property Tax Increase

The United States has witnessed a substantial rise in property taxes for single-family homes, reaching a staggering $363 billion in 2023. This marks a nearly 7% increase from the previous year, the most significant jump in five years according to ATTOM’s April report. The growth rate has almost doubled compared to the increase seen between 2021 and 2022, leaving many homeowners grappling with unexpected financial burdens.

While the national average property tax for a single-family household stands at $4,062, the impact is far from uniform across the country. A closer look reveals that 21 counties have average annual property taxes exceeding $10,000, with 12 of these located in the New York City metropolitan area. This disparity highlights the uneven distribution of tax burdens and the potential for significant financial strain on homeowners in certain regions.

New Jersey property taxes by county — 7 among nation’s highest https://t.co/XKSVOkCNgS @nj1015

— New Jersey 101.5 (@nj1015) August 20, 2024

New Jersey: Epicenter of High Property Taxes

New Jersey has emerged as the state with the highest average property taxes in the nation. Essex County, in particular, stands out with an eye-watering average property tax of $13,145. This extreme tax burden has placed immense pressure on New Jersey homeowners, many of whom are struggling to keep up with the rising costs of homeownership.

“Property taxes took an unusually high turn upward last year, pushing effective rates up, while huge gaps in average tax bills between different parts of [the] country remained in place,” said ATTOM CEO Rob Barber. “The tax increases were likely connected, at least in part, to inflationary pressures on the cost of operating local governments and schools, along with rising public employee wages and other major expenses.”

The reasons behind these escalating property taxes are multifaceted. Inflationary pressures have significantly impacted local government and school operation costs, public employee wages, and other essential expenses. Additionally, the varying levels of government services and the economies of scale in metro areas with numerous small municipalities contribute to the disparities in property taxes across the country.

Policy Debates and Public Discontent

The spike in property taxes has ignited heated debates about economic policies and their social implications, particularly in New Jersey. The state’s legislative stance on professional licenses for undocumented immigrants, established by Senate Bill 2455 in 2020, has come under scrutiny. This law, which allowed illegal immigrants to obtain licensed jobs, has had a significant impact on the state’s welfare and aid services.

“I don’t see any scenario where we’re going to be able to take in a program in Atlantic City or frankly elsewhere in the state,” the progressive governor said last September. “You need scale, enormous amount of federal support, resources that go beyond anything that we can afford. Putting everything else aside, I just don’t see it. I would suspect that that will continue to be the case.”

Governor Phil Murphy has faced mounting challenges due to the influx of migrants overwhelming state resources. This situation, coupled with the rising property taxes, has led to increasing frustration among New Jersey residents. A recent poll indicates widespread dissatisfaction with the Biden-Harris administration’s immigration policies, further complicating the political landscape in the state.

As property taxes continue to rise and debates over immigration and economic policies intensify, homeowners across the nation, particularly in high-tax areas like New Jersey, are left to navigate an increasingly complex and costly housing market. The coming months and years will likely see continued discussions on how to balance the need for public services with the financial burdens placed on homeowners.