A new study on behalf of Construction Coverage has identified the U.S. cities, counties, and states with the highest effective property tax rates in the nation.

America’s housing market has entered a period of recalibration after the frenzy of recent years. While the acute shortages and bidding wars have mostly cooled, affordability remains a stubborn challenge. Home prices are still hovering near record highs, though their growth has slowed significantly, now trailing general inflation on average rather than outpacing it. Meanwhile, interest rates have stabilized but remain elevated compared to historic lows, continuing to exert pressure on borrowing costs for aspiring buyers.

While existing homeowners have largely benefited from high prices in the form of equity gains, they also face their own set of challenges. For one, many are effectively “locked in” to their homes, having secured low-interest mortgages before rates began climbing. For these homeowners, relocating often means choosing between downsizing to a less expensive property or absorbing significantly higher monthly payments on a new loan.

Another factor is property taxes. Typically calculated as a percentage of a home’s assessed value, property taxes remain a growing burden even as the market cools. Because tax assessments often lag behind real-time market data, many homeowners are still seeing their bills climb as local governments play catch-up to the massive value spikes of the early 2020s. Consequently, even in a slower market, property tax bills in many areas continue to rise, squeezing homeowners regardless of whether they have a fixed-rate mortgage or own their property outright.

To address this issue, certain states have implemented mechanisms to protect homeowners from runaway tax increases. As of 2025, 18 states, including California, Florida, and New York, and the District of Columbia have assessment limits that cap how much a property’s assessed value can increase annually. While these limits help shield homeowners from the full impact of rising home prices, they also deter long-time owners from moving and contribute to significant disparities in property tax burdens across the U.S.