These U.S. Cities Saw Property Taxes Rise the Fastest
ATTOM’s 2025 analysis reveals metro areas where homeowners face dramatic tax bill increases far exceeding the national average.
Property taxes remain one of the most consequential costs of homeownership in the United States, and recent data shows significant disparities in how those costs are changing across the country. According to ATTOM Data Solutions’ 2025 property tax analysis, the national average property tax bill rose approximately 3 percent year-over-year. However, in certain cities where property taxes are rising fastest, homeowners experienced increases that dwarfed that national benchmark, with some metropolitan areas seeing tax bills climb by double digits or more. This geographic variation has substantial implications for household budgets, real estate markets, and local government finances across different regions of the country.
Memphis Leads the Nation in Property Tax Increases
The Memphis, Tennessee metropolitan area recorded the most dramatic property tax increase identified in ATTOM’s 2025 analysis, with tax bills rising 34 percent compared to the prior year. This increase represents more than eleven times the national average growth rate and places considerable new financial pressure on homeowners throughout the Memphis metro region. The sharp rise reflects a combination of factors that can drive property tax increases, including reassessments of property values, changes in local tax rates, and shifts in municipal revenue needs.
Baltimore, Maryland ranked second among major metropolitan areas with a 27 percent increase in property tax bills. The Baltimore metro area has faced ongoing fiscal challenges, and rising property taxes reflect efforts by local governments to maintain services and infrastructure. St. Louis, Missouri followed with an 11 percent increase, while Houston, Texas saw tax bills rise by 10 percent. Kansas City rounded out the top five metros with an 8 percent increase in property taxes according to the ATTOM data.
Property Tax Increases vs. National Average (2025)
Understanding ATTOM’s Metro Area Property Tax Analysis
ATTOM Data Solutions conducts its annual property tax analysis by examining tax assessment data from counties across the United States. The analysis measures changes in property tax bills at the metropolitan statistical area level rather than individual city boundaries. This methodology provides a broader regional picture that captures tax trends affecting homeowners throughout interconnected urban and suburban communities. When interpreting headlines about cities where property taxes are rising fastest, readers should understand that these figures represent metro-area averages that may include multiple counties and municipalities with varying individual tax rates.
The 2025 analysis uses the most recent full-year property tax billing data available, allowing for year-over-year comparisons that account for seasonal variations in assessment and billing cycles. Property tax increases can result from multiple factors including rising assessed property values, increases in millage rates set by local governments, voter-approved levies for schools or infrastructure, and reductions in state-level property tax relief programs.
National Context
According to ATTOM’s 2025 analysis, the average property tax bill in the United States rose approximately 3 percent year-over-year. This makes increases of 10 percent or more in certain metros notably above the national trend, with Memphis’s 34 percent increase representing more than 11 times the typical growth rate.
How Property Tax Trends Vary Across U.S. Regions
The geographic distribution of rapid property tax increases reveals distinct regional patterns. The South and Midwest appear prominently among metros experiencing the fastest-rising property taxes, with Memphis, Houston, St. Louis, and Kansas City all falling within these regions. The Mid-Atlantic region is represented by Baltimore’s significant 27 percent increase. These patterns may reflect regional differences in how frequently properties are reassessed, how quickly home values have appreciated in recent years, and the fiscal pressures facing local governments in different parts of the country.
Texas metros like Houston face unique circumstances because the state lacks a personal income tax, making property taxes a particularly important source of local government revenue. Tennessee similarly has no state income tax on wages, placing additional reliance on property and sales taxes for local funding. Maryland’s property tax structure includes both state and local components, and Baltimore’s increase reflects pressures at multiple government levels.
| Region | Notable Metro | Tax Increase | Context |
|---|---|---|---|
| South (Tennessee) | Memphis | +34% | No state income tax |
| Mid-Atlantic | Baltimore | +27% | State and local taxation |
| Midwest (Missouri) | St. Louis | +11% | Reassessment cycles |
| South (Texas) | Houston | +10% | No state income tax |
| Midwest (Kansas/Missouri) | Kansas City | +8% | Cross-state metro area |
What Rising Property Taxes Mean for Housing Affordability
For homeowners in metros experiencing rapid property tax growth, the financial implications extend beyond the tax bill itself. Lenders typically require property taxes to be paid through escrow accounts, meaning monthly mortgage payments increase when taxes rise. A 34 percent property tax increase, as seen in Memphis, can add hundreds of dollars to annual housing costs. For homeowners on fixed incomes or tight budgets, such increases can strain household finances significantly and potentially affect decisions about whether to remain in their homes.
Rising property taxes also influence real estate market dynamics. Higher carrying costs can moderate home price appreciation by reducing what buyers can afford to pay. In some cases, rapid tax increases may encourage homeowners to appeal their assessments or advocate for local tax relief measures. Several states offer property tax exemptions, freezes, or circuit breakers for certain homeowners, particularly seniors and those with lower incomes, though eligibility requirements and benefit levels vary considerably.
Key Takeaways
Property tax increases in the fastest-growing metros significantly outpace the 3 percent national average, with Memphis homeowners facing bills 34 percent higher than the previous year. These regional disparities highlight the importance of understanding local tax trends when evaluating housing affordability and making homeownership decisions. The ATTOM analysis examines metro areas rather than individual cities, capturing broader regional trends that affect communities across county and municipal boundaries.
Factors That Could Shape Future Property Tax Trends
Several factors will influence whether rapid property tax growth continues in these metro areas. Home price trends play a significant role since assessed values typically follow market values over time, though often with a lag due to reassessment schedules. If home prices stabilize or decline in certain markets, future tax increases may moderate. However, local government budget pressures, infrastructure needs, and school funding requirements can drive tax rates higher even when property values plateau.
State-level policy decisions also matter considerably. Some states have implemented or are considering property tax caps, assessment limitations, or expanded exemption programs. Texas voters in recent years have approved measures aimed at reducing property tax burdens, though the effectiveness of such measures varies. Homeowners concerned about property tax trends should monitor both local assessment practices and state legislative developments that could affect their tax obligations.
The Path Forward for Property Taxpayers: As ATTOM’s 2025 data makes clear, property tax burdens are growing unevenly across the United States, with homeowners in certain metropolitan areas facing increases that far exceed national norms. Understanding which cities where property taxes are rising fastest can help current and prospective homeowners make informed decisions about where to live and how to budget for housing costs. While property taxes fund essential local services including schools, emergency services, and infrastructure, the rapid growth seen in metros like Memphis and Baltimore underscores the importance of staying informed about local tax policies and available relief options that may help mitigate the impact on household budgets.
