EL PASO, Texas (KFOX14/CBS4) — Despite a slowdown in home price growth, property tax bills continue to climb across much of the U.S. as assessments catch up to the sharp appreciation of the early 2020s, according to a new analysis by Construction Coverage.
The report reveals that property taxes are the fastest-growing source of state and local revenue, with a $96 billion increase from 2022 to 2024, outpacing growth in sales and corporate income taxes.
In El Paso, Texas, homeowners pay a median of $3,677 in property taxes annually, with an effective property tax rate of 1.592% for owner-occupied homes.
This places El Paso 53rd out of approximately 650 cities analyzed for effective property tax rates, according to the report.
Nationally, property taxes continue to rise even as the housing market cools.
While home prices have slowed and now trail general inflation, property tax bills in many areas are still climbing. This is due to tax assessments lagging behind real-time market data, causing local governments to catch up to the massive value spikes of the early 2020s.
To mitigate the impact of rising property taxes, 18 states, including California, Florida, and New York, along with the District of Columbia, have implemented assessment limits that cap annual increases in a property’s assessed value.
These measures aim to protect homeowners from runaway tax increases but also contribute to disparities in property tax burdens across the nation.
The full report by Construction Coverage provides detailed breakdowns of effective property tax rates and median property taxes paid for owner-occupied homes at the state, county, and city levels.
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