Property tax delinquency is on the rise, as more Americans struggle with rising costs.
According to a report from Cotality, property tax delinquencies ticked up to 5.1% in 2025, after hitting 4.5% in 2024.
The all-time low was 4.3% in 2019.
Property taxes have risen 27% from 2019 to 2025, according to the firm’s data.
“Many homebuyers assume that securing a mortgage means locking in stable monthly payments for the long term,” says Molly Boesel, senior principal economist at Cotality, in the report. “However, rising home values often lead to higher property taxes, and over the past six years, this has become a reality for many homeowners. Whether they’re paying off a mortgage or own their home outright, rising monthly costs can put pressure on household budgets. Those without sufficient financial buffers, such as steady income or savings, may find themselves struggling to keep up with growing tax bills.”
States with higher unemployment rates are seeing a significant increase in property tax delinquencies from the national average.
States with the highest delinquency rates include Mississippi (13.8%), New Jersey (9.9%), West Virginia (9.9%), Washington, D.C. (9.5%), New Mexico (9.4%) and Delaware (9.3%).
Meanwhile, Wisconsin (1%), North Dakota (1.1%), Wyoming (2.3%), Minnesota (2.5%) and Pennsylvania (2.8%) saw the lowest increases in property tax delinquencies.
Cotality also found that tax lien states have a higher average property tax delinquency (6.2%) than tax deed states (4.9%).
Of the six states with the highest tax delinquency in 2024, five states were tax lien states.
Photo: Jon Tyson
