Key facts
- The national property tax delinquency rate reached 5.2% in early 2026.
- The 2026 rate is the highest since 2017 but below the long-term average of 5.4%.
- Mississippi had the highest delinquency rate in 2025 at 15.1%.
- Louisiana saw the largest increase in delinquencies in 2025, rising from 5.8% to 9.0%.
- States that sell tax lien certificates to investors averaged a 6.1% delinquency rate.
The national property tax delinquency rate has climbed to 5.2% in early 2026, marking the highest level recorded since 2017, according to Cotality's latest report. This figure represents an increase from 4.2% in 2025. The report, which analyzed data from approximately 15 million tax reporting events across 8 million non-escrowed mortgages, suggests that more households are finding it difficult to manage property tax payments.
Despite the rise, the current rate remains below the long-term average of 5.4% and is partly influenced by seasonal trends, Cotality noted. Sean Graham, senior vice president of servicing and payment solutions at Cotality, stated that property taxes are a substantial cost of homeownership and the observed increase indicates growing financial strain for households.
Mississippi reported the highest delinquency rate in 2025 at 15.1%, nearly three times the national average, and has held this position for 13 of the past 14 years. Other states with high delinquency rates in 2025 included Kansas (9.6%), New Jersey (9.5%), Louisiana (9.0%), and Massachusetts (8.9%). Conversely, North Dakota had the lowest rate at 1.4%, followed by Wisconsin (1.5%), Wyoming (1.6%), Illinois (2.1%), and Minnesota (2.3%).
The report found no significant correlation between state unemployment rates and property tax delinquency. Instead, delinquency was more closely associated with HOA liens and mortgages that were over 90 days past due. Graham highlighted the consistency of state-level disparities, suggesting that local factors like tax levels and collection processes significantly influence homeowners' ability to stay current.
Louisiana experienced the most significant increase in delinquencies in 2025, with its rate jumping from 5.8% to 9.0%. Alabama and Kansas also saw notable rises. New Mexico, however, showed the largest improvement, with its rate dropping from 9.4% to 5.4%. Washington, D.C., and Arizona also improved their delinquency rates.
States that utilize tax lien certificates for recovering unpaid taxes had an average delinquency rate of 6.1%, compared to 4.5% in states where counties sell the property directly. Graham noted that while tax lien states offer homeowners more time before risking foreclosure, this approach is associated with higher delinquency rates.