12 U.S. Regions Where Homeowners Are Quietly Being Taxed Out of Their Homes

In recent years, property taxes have become a growing concern for homeowners across the United States, with some cities and towns seeing significant hikes. In particular, there are places where property taxes have doubled, leaving many residents questioning whether these areas are still worth living in. While rising taxes can signal improvements in local infrastructure and public services, they also put a financial strain on homeowners and renters alike.

1. Providence, Rhode Island

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Rhode Island, the smallest state in the country, has some of the highest property tax rates relative to home values. In 2025, homeowners are expected to face further increases as local governments reassess properties to keep pace with rising market values. Urban areas like Providence are particularly affected, where new developments and gentrification have driven up home prices and, consequently, tax bills.

As noted by Providence Journal, Rhode Island’s reliance on property taxes for funding schools and public services leaves homeowners vulnerable to significant hikes. Efforts to reform the state’s tax system have been slow, leaving many residents frustrated by the lack of relief. Homeowners in Rhode Island are encouraged to explore homestead exemptions and challenge their assessments if they believe their property is overvalued.

2. Omaha, Nebraska

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Nebraska has long struggled with property taxes, ranking among the highest in the nation relative to home values. In 2024, the state enacted Legislative Bill (LB) 34, its first comprehensive levy limit aimed at curbing property tax growth. However, experts argue that the bill’s design flaws could lead to uneven results—being too lenient in some years and overly restrictive in others. This unpredictability means that 2025 could see sharp increases in property taxes for some homeowners, depending on how the law is applied.

According to the Tax Foundation, Nebraska’s reliance on property taxes to fund schools and local government services has made meaningful reform difficult. While LB 34 is a step in the right direction, the state still lacks a long-term strategy to ease the tax burden on homeowners. Rural areas, in particular, may face disproportionate increases due to fluctuating property valuations. Residents should monitor local government decisions closely, as budget changes could significantly impact their tax bills.

3. Philadelphia, Pennsylvania

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Philadelphia homeowners should prepare for increases in property taxes in 2025 as the city faces mounting financial pressures and a growing demand for public services. Unlike many other major cities, Philadelphia relies heavily on property taxes to fund essential services such as public schools, infrastructure projects, and emergency services. In recent years, Philadelphia has experienced a surge in home prices, particularly in desirable neighborhoods such as Center City, Fishtown, and University City.

This growth has led to reassessments that have significantly increased property tax obligations for many residents. Additionally, the city continues to expand affordable housing initiatives and public transit improvements, both of which require additional funding. Mayor Cherelle Parker’s administration has proposed new spending measures aimed at addressing housing affordability and crime prevention, which could further impact property tax rates. According to The Philadelphia Inquirer, the city’s reassessment process has led to widespread tax hikes in previous years, and experts predict that 2025 will follow suit. Homeowners concerned about rising costs should review their assessments carefully and explore available relief programs, such as the Homestead Exemption, to potentially reduce their tax burden.

4. Seattle, Washington

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Unlike many states, Washington does not impose a personal income tax, which means local governments must rely heavily on property taxes to fund essential services such as schools, transportation, and public safety. As property values continue to rise, especially in high-demand neighborhoods like Queen Anne, Capitol Hill, and Ballard, tax assessments are expected to increase accordingly. In 2023, King County saw a sharp uptick in median home prices, leading to reassessments that raised tax bills for thousands of homeowners.

This trend is projected to continue into 2025, with the county assessor’s office warning that property valuations will be adjusted to reflect recent market growth. Additionally, Seattle’s ongoing infrastructure projects, including improvements to public transit and roadways, will require substantial funding, further justifying the increase in property taxes. According to the Seattle Times, property tax collections in King County increased by nearly 7% in 2024, setting the stage for continued hikes in the coming year. Given these factors, homeowners should prepare for higher tax bills and consider appealing their assessments if they believe their property valuations are inaccurate.

5. Portland, Oregon

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Over the past decade, Portland’s real estate market has experienced sustained growth, driving up property assessments and, in turn, tax bills. The city relies heavily on property taxes to fund essential services, including schools, public safety, and transportation projects. In recent years, Portland voters have approved multiple bond measures and levies aimed at improving education, affordable housing, and emergency response services, further contributing to tax increases. In 2023, property tax rates in Multnomah County rose by an average of 5%, with some homeowners seeing even steeper increases.

The upcoming reassessment cycle in 2025 is expected to push taxes even higher as assessors account for the continued appreciation of home values. Portland’s ongoing investments in road maintenance, green infrastructure, and public transit expansions also require additional revenue, much of which will come from homeowners. Furthermore, the impact of inflation on city budgets has led to increased spending, prompting local officials to seek additional funding through property tax adjustments. According to the Oregonian, Portland property tax revenues increased by nearly $200 million between 2021 and 2024, a trend that is unlikely to slow down.

6. Stamford, Connecticut

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Connecticut’s property taxes are some of the highest in the nation, and 2025 is expected to bring even more increases for homeowners. The state’s reliance on property taxes to fund local schools and government services means that rising home values and budget pressures directly impact property tax bills. Additionally, recent changes to the state’s fiscal policies, such as adjustments to net operating loss (NOL) carryforward periods, could shift more financial burden onto residential property owners.

Connecticut’s high property tax rates have long been a deterrent for new residents and businesses. The state’s ongoing efforts to address budget shortfalls often lead to increased assessments, particularly in affluent areas like Fairfield County. For homeowners, this could mean significant year-over-year increases in their tax bills. Those living in the state should explore available exemptions, such as senior citizen tax relief programs, to help offset rising costs.

7. Newark, New Jersey

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New Jersey consistently ranks as the state with the highest property taxes in the country, and 2025 looks no different. With the average property tax bill already exceeding $9,000, residents are bracing for additional increases due to rising home values and growing demands for school funding. Urban and suburban areas alike face significant budgetary pressures, with local governments relying heavily on property taxes to fill revenue gaps.

Recent reassessments in high-demand housing markets like Bergen County and Essex County are expected to push property tax bills even higher. While Governor Phil Murphy has introduced rebate programs to ease the burden on middle-income families, these measures may not be enough to offset the rapid increases. Homeowners in New Jersey are advised to review their assessments closely and consider filing appeals if they believe their property’s valuation is inaccurate.

8. Chicago, Illinois

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Illinois residents have long been burdened by some of the highest property taxes in the nation, and the situation is expected to worsen in 2025. The state’s pension crisis, combined with declining federal aid, has forced local governments to rely more heavily on property taxes to fund services. In areas like Cook County, where home values have risen substantially, reassessments are expected to result in steep increases for many homeowners.

Illinois’ property tax system disproportionately affects middle-class families, particularly in suburban areas. High property tax rates also discourage potential buyers, making it harder for current homeowners to sell their properties at competitive prices. Residents are urged to attend local tax board meetings to stay informed about upcoming changes and explore exemptions that may help reduce their tax burden.

9. Los Angeles, California

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California’s property tax system is unique, governed by Proposition 13, which caps annual increases at 2% for existing homeowners. However, the state’s rapid rise in home values means new buyers are facing much higher initial tax assessments, contributing to growing affordability challenges. In 2025, property tax revenue is expected to increase significantly due to ongoing housing demand and new construction, further straining the budgets of recent homebuyers.

The disparity between long-term homeowners and new buyers under Prop 13 has created an uneven tax landscape, with new residents bearing the brunt of rising costs. Additionally, local governments continue to introduce special assessments and parcel taxes to fund schools and infrastructure, further increasing property tax bills. California homeowners, especially recent buyers, should research available tax exemptions and stay vigilant about additional levies on their property tax bills.

10. Baltimore, Maryland

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Maryland’s property taxes are expected to rise in 2025 due to Governor Wes Moore’s proposed $67.3 billion budget, which includes both tax cuts and increases. While details on specific property tax changes are limited, the inclusion of tax hikes in the budget suggests that homeowners could face higher bills as the state seeks to fund infrastructure projects, education, and other initiatives. Maryland’s rising home values further exacerbate the issue, as property tax assessments are tied to market conditions.

The state’s spending plan aims to balance economic growth with fiscal responsibility. However, many homeowners worry that increased taxes will disproportionately impact middle-class families already struggling with high housing costs. Residents are encouraged to stay informed about proposed changes and participate in public hearings to voice their concerns. The state’s budgetary decisions in 2025 could have long-lasting effects on property owners’ financial stability.

11. Boston, Massachusetts

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Massachusetts homeowners are likely to see significant property tax increases in 2025, driven by rising home values and the state’s heavy reliance on property tax revenue to fund schools and local government services. Areas like Boston, Cambridge, and suburban neighborhoods have experienced rapid appreciation in home prices, which directly impacts tax assessments. As municipalities adjust their budgets to account for inflation and new infrastructure needs, property tax bills are expected to climb even higher.

The Massachusetts Department of Revenue has encouraged cities and towns to update their property assessments more frequently to reflect current market values. While this ensures accuracy, it also means that homeowners may face steep increases in their tax bills as reassessments catch up to soaring real estate prices. To ease the burden, the state offers tax deferral programs for seniors and veterans, but these benefits don’t apply to all residents. Homeowners are advised to stay informed about local tax policy changes and explore potential exemptions or abatements to mitigate rising costs.

12. Miami, Florida

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Florida’s property tax system, while relatively moderate compared to some states, is expected to see significant increases in 2025 due to skyrocketing home values and an influx of new residents. Popular areas like Miami, Tampa, and Orlando have experienced unprecedented real estate demand, pushing up property assessments across the state. Although Florida’s Save Our Homes cap limits annual increases in assessed value for primary residences to 3%, this protection doesn’t apply to second homes or investment properties, leaving many property owners vulnerable to larger tax hikes.

The state’s booming housing market has made it difficult for local governments to balance the needs of longtime residents with the demands of new arrivals. Rising property taxes could disproportionately impact retirees and low-income families who are already struggling with Florida’s increasing cost of living. Homeowners should monitor their property assessments and consider filing appeals if they believe their valuation is too high. Additionally, residents can take advantage of Florida’s homestead exemption to reduce their taxable property value.

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