‘I just can’t do it anymore’: This struggling Nebraska mom is in tears after a property tax spike — the mortgage eats up 50% of her income after her home valuation nearly doubled

Why Are Property Taxes Going Up?

Across the country, property taxes are increasing at a significant rate, making it difficult for many Americans to keep their homes.

There is no federal property tax in the U.S., and according to the Tax Policy Center, the tax on real property (land and buildings, both residential and commercial) is primarily levied by local governments (cities, counties, and school districts).

The funds are then used for public services, such as schools, libraries, emergency services, and roads. Property tax rates vary based on where you live. In 2022, New Jersey had the highest effective tax rate of any state at 2.23%, while Hawaii had the lowest at 0.32%.

Property taxes are based on assessed value — when values are low, taxes are set at a low rate. Home prices have increased significantly in the last few years, driven by several factors including low inventory. The median sale price of a home in the U.S. was $412,300 in Q2 2024, according to the U.S. Census Bureau, up 30% from Q2 2020 when it was $317,100.

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Dealing with a 'crisis'

Vogt is one of many dealing with increasing property taxes in Nebraska. Last month, Governor Jim Pillen called lawmakers for a special session to solve the issue, which he called a “crisis.” The result was $185 million in new tax relief, or about 3.5% of the $5.3 billion in local property taxes collected in 2023, according to the Nebraska Examiner.

For homeowners who are facing increased property tax prices, there are relief options available. If your payment has gone up because of a regularly scheduled reassessment, you can appeal the revaluation of your property to the local authorities. CBS News notes each authority has different deadlines for filing appeals, so it’s important to check yours once you receive your reassessment notice. The article also recommends looking at local real estate sales for comparable homes and getting a third-party assessment before deciding to make an appeal.

Some governments also offer property tax relief programs to help homeowners. The AARP Foundation has a database of state property tax relief programs and can help homeowners learn how to apply for assistance. The foundation says relief services can help owners in need save from $200 up to $6,000 on their tax assessment.