But rising home prices in the past six years have similarly increased mortgage holders' financial burdens in the form of higher taxes owed. Since an all-time low delinquency level of 4.3% was recorded in 2019, the amount of property taxes owed has increased 27% on a nationwide basis, Cotality found. 

"Many homebuyers assume that securing a mortgage means locking in stable monthly payments for the long term. However, rising home values often lead to higher property taxes, and over the past six years, this has become a reality for many homeowners," said Molly Boesel, Cotality's senior principal economist, in a press release. 

Tax totals surged by more than 50% for homeowners in Colorado and Georgia. At the same time, states where average amounts due require the biggest share of a household median income were Vermont and Illinois at 11.2%. 

"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," Boesel continued. 

How delinquencies vary by state

Parts of the country where the highest rate of tax delinquencies appeared in 2024 were spread across the U.S., led by Mississippi with a 13.8% share, followed by New Jersey and West Virginia at 9.9% each. The District of Columbia and New Mexico rounded out the top five at 9.5% and 9.4%. 

With the exception of the nation's capital, all of the leading states also rank among the top five in the historical 2012-to-2023 time frame. 

State unemployment rates correlated strongly with homeowners' ability to keep up with property tax collections, Cotality said. States with the highest share of overdue payments also tended to have unemployment rates above the national 4.1% average. Three of the top six reported unemployment rates higher than the current mean.

On the other end, states where unemployment came in below the national average also ranked on the low end of property tax delinquency rates. Wisconsin had the smallest delinquency rate at 1%, followed by North Dakota at 1.1% and Wyoming at 2.3%. The three states also rank among the leading states for the lowest delinquency shares historically. 

Cotality also found variation in delinquency rates between tax-lien and tax-deed states. In tax-lien states, where a property will not be sold unless the owner fails to pay off the lien in a set term, the share of delinquencies was 6.2% in 2024. The number fell to 4.9% among tax-deed jurisdictions, where local governments are able to sell the properties to cover the outstanding debt.

While housing researchers regularly note that the performance of the U.S. mortgage market remains solid, the rise in property tax delinquency levels corresponds with growing stress that has shown up in some pockets of mortgage borrowers. 

Loan delinquencies increased 5.2% year over year in May, ICE Mortgage Technology reported. Accounting for much of the rise were late payments on Federal Housing Administration-guaranteed mortgages often taken out by first-time homebuyers.   

While FHA-backed loans make up approximately 12% of the U.S. mortgage market, they account for more than one-third of delinquent debt, according to data from the Federal Reserve Bank of New York.