Aug 9, 2025
If owning a home is the American Dream, property taxes could be a rude awakening for many dreamers. Opinion surveys gathered by the National Council of State Legislatures in 2023 found that property taxes were “the most hated tax” in the country, because of the lump-sum payments involved and the lack of control taxpayers have over the size of this liability.
Unfortunately, a recent analysis by ABC News and its affiliates found another reason to hate the tax: It unfairly impacts some homeowners more than others. According to the report, families in certain neighborhoods pay a disproportionate amount of property taxes and that could be putting them at greater risk of missing payments and losing their homes.
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Here’s a closer look at this shocking discovery and whether you could be living in one of these ‘highballed’ neighborhoods too.
Highballed property taxes
In general, property taxes are based on the local government’s assessment of a home’s value. However, real estate valuation is highly subjective and experts told ABC News that a tax assessment of a home could be misaligned with its fair market value.
It’s this subjective gap in valuation that’s unfairly impacting some communities. According to ABC’s analysis of ATTOM and U.S. Census Bureau data, homeowners who live in predominantly black or brown neighborhoods tend to pay higher taxes than their counterparts in predominantly white neighborhoods.
On average, a homeowner in a white neighborhood receives a property tax assessment that is 70% of their home’s fair market value. For owners in black or brown communities, the assessment is 80% on average.
"We tend to see then, African American and Latino communities are paying higher tax rates," University of Chicago Professor Christopher Berry told ABC News7, explaining that the systematic overassessments could be the result of lower fair market values in these communities.
This heavier tax burden could be putting some vulnerable members of racialized communities at great risk of losing their homes. Like 70-year-old Baltimore resident Bonita Anderson, who lost her home in 2022 after falling behind on her property taxes by just $5,000. "I sat down and thought, 'Oh my god, I'm 70 years old and I'm homeless,'" she told ABC News.
Unfortunately, the issue could be getting worse as municipalities face increasing pressure to raise tax revenue in the years ahead.
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The problem could escalate
While some homeowners are paying a disproportionate amount of property taxes, counties across the country are facing increasing pressure to raise property taxes for all residents.
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President Trump’s signature One Big Beautiful Bill Act (OBBBA) cuts federal funding support for local governments which could compel many municipalities to either cut essential services or raise taxes, according to a report by the National Association of Counties.
In other words, many homeowners could see a larger property tax bill and for those being unfairly overtaxed the impact could be magnified.
What can you do?
If you believe your home’s tax assessment is unfairly high, there are ways to resolve the discrepancy.
The first step is to review the notice for any errors in valuation and gather evidence of comparable sales in your neighborhood to paint a clear picture of your home’s fair market value. The next step is to file an appeal with your county to review the assessment, according to tax software provider Avalara.
A lack of awareness of this appeals system could be one of the reasons why some homeowners face an unfair property tax bill. According to a 2025 report by the Cook County Treasurer, commercial property owners in this specific county had greater success in appealing and reducing their property tax bills than residential owners. Also, homeowners in high-income census tracts appealed their property taxes 46% of the time, compared to only 11% for those in the lowest-income census tracts.
Put simply, if you live in a predominantly non-white, relatively low-income neighborhood, it could be a good idea to examine your property tax bill closely and consider an appeal.
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
