- November 20, 2024
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A new report analyzing property tax increases in metro areas nationally since the pandemic has bad news for a trio of Florida markets: Jacksonville, Tampa and Miami are all in the top 3 of regions with the biggest increases.
On the bright side, those regions weren’t No. 1 or No. 2. That fell to Indianapolis, where the report, from tech real estate brokerage Redfin, found the typical homebuyer pays 66.7% more today than they would have in 2019, bringing their monthly tax bill to $205. Atlanta is No. 2 with a 65.8% increase to $239. Then three from the Sunshine State, with increases ranging from 48.1% to 59.6%.
The report posits three reasons for the tax increases in Florida, including:
Top 5 metro areas with highest property taxes since 2019 | ||||
Median Monthly Housing Payment | Housing Payment, Change from 2019 | Median Monthly Property Tax Payment | Property Tax Payment, Change from 2019 | |
Indianapolis | $2,152 | 105.8% | $205 | 66.7% |
Atlanta | $2,811 | 106.8% | $239 | 65.8% |
Jacksonville | $2,735 | 99% | $228 | 59.6% |
Tampa | $2,797 | 112.4% | $250 | 56.7% |
Miami | $4,401 | 125.7% | $367 | 48.1% |
Source: Redfin |
“Florida was alluring for remote workers during the pandemic because of its relatively affordable housing. Somewhat ironically, the state’s population boom has driven up home prices, and property taxes along with it,” said Elijah de la Campa, a senior economist at Redfin. “The cost of owning a home has gone from affordable to unaffordable for a lot of local Florida residents and out-of-towners. Home prices that are much higher than in pre-pandemic times and the disaster-driven surge in HOA and insurance costs are now pricing homebuyers out of the market. Homebuyers have realized they may save money by paying no income tax, but their property tax bill will increase.”
Nationwide, property taxes, in dollars, have increased nearly 30% since 2019 to a monthly median of $250, the report found. The average effective tax rate across the U.S. is 0.67%, down from 0.77% in 2019; the effective tax rate has declined over that period because home prices have increased more than the tax rates set by local governments.