Property Tax Collections Remained Stable in 2021

The Census Bureau’s quarterly tax data revealed a total $672.5 billion in taxes paid by property owners at the close of Q4 2021, a 1% quarterly increase after a 0.6% decline in Q3. Property taxes accounted for 36.2% of state and local tax receipts, followed by individual income taxes, sales taxes, and corporate taxes at 30.5%, 27.1%, and 6.2%, respectively. Property tax collections have been susceptible to only very small annual fluctuations, reflecting the long-term stability of property values, NAHB Eye on Housing reports.

Four-quarter property tax revenues declined 0.6% in Q3 2021, the second such decrease since 2012.

Year-over-year growth of four-quarter property tax revenue has decelerated over the past two quarters after accelerating each quarter from Q3 2020 to Q2 2021. Four-quarter corporate income tax, individual income tax, and sales tax revenue increased 58.3%, 22.1%, and 15.6%, respectively, year-over-year.

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