As home values soar across the country, homeowners are feeling the pinch of increased property taxes. While higher home values can be a boon to homeowners looking to sell or leverage equity, they also mean a larger tax bill, particularly for those in areas with the highest rates of property tax. Property taxes are calculated based on the assessed value of a home, and with this surge in real estate prices, tax assessments have followed suit, leading to greater expenses for property owners.

Areas with the most expensive real estate markets are often the ones where homeowners pay the most in real estate taxes. States like New Jersey, New Hampshire, and Illinois typically find their residents bearing some of the heaviest property tax burdens in the nation. For instance, New Jersey holds the title for the highest average property tax rate in the country.

Additionally, it’s not just high-value properties that are affected. As neighborhoods gentrify and home values rise, longtime residents may find themselves struggling to pay their rapidly increasing tax bills. This issue ties into larger conversations about affordability and displacement.

Urban centers and highly desirable coastal areas tend to have higher property taxes overall. For example, counties in New York near New York City or areas around San Francisco experience some of the nation’s steepest property tax rates due to high market values.

However, these increases can vary widely by location due to the way property taxes are determined at local levels. Local government expenditures on schools, infrastructure, emergency services, and community programs are primarily funded by these taxes; hence communities with higher spending have higher taxes.

With rising values generally leading to rising taxes, some homeowners may be considering appealing their assessments or looking for exemptions for which they may be eligible—anything to ease what has become a growing financial burden for many.

As debates surrounding property taxes heat up, especially in high-value markets where taxpayers feel they’re shouldering an outsized burden, one fact remains clear: as long as home values continue on their upward trajectory, discussions around property taxation will likely become more urgent and contentious among taxpayers, local governments, and policy advocates alike.