Edgewater, a neighborhood in Chicago, saw its effective property tax rate rise from 1.1% in 2016 to 1.7% in 2025—a gain of 0.6 percentage points over the decade, BlockShopper.com reports.
The average effective property tax rate citywide in Chicago remained steady at 1.4% between 2016 and 2025. Edgewater’s 2025 rate surpassed the city average.
Edgewater had the eighth highest increase in effective property tax rates among Chicago’s 110 neighborhoods analyzed during this period.
As of 2025, Edgewater ranked 42nd in Chicago for its 1.7% effective property tax rate in comparison with other city neighborhoods.
This figure is 1.9 times greater than the national average effective property tax rate of 0.888% in the U.S. in 2024.
U.S. home prices continued their upward trend in 2025, reaching a national median of approximately $447,000 in June—1.13% higher than a year before, according to Redfin. The data reveals a pronounced inventory gap, with sellers outnumbering buyers by 36% (508,715 homes). Redfin considers a housing market balanced if the difference between buyers and sellers is within 10%.
Homeowners may encounter higher property tax bills despite flat or falling rates if property values appreciate. Since property taxes are determined by both the tax rate and a property’s assessed value, rising prices increase the tax base and amount owed, even when local governments reduce rates. For example, the average effective property tax rate on a median-priced home in each state’s largest city dropped more than 5% from 2023 to 2024, based on a study by the Lincoln Institute of Land Policy.
Meanwhile, rising home values have expanded the tax base in many regions. Because tax bills are based on market value, climbing home prices can drive up taxes even if rates do not increase. Research on U.S. housing markets has shown that a 1% increase in median home value generally results in about a 0.71% drop in the effective tax rate, indicating that strong price growth allows jurisdictions to collect more revenue even as rates decline.
| Year | Effective Property Tax Rate |
|---|---|
| 2025 | 1.7% |
| 2024 | 1.6% |
| 2023 | 1.6% |
| 2022 | 1.5% |
| 2021 | 1.4% |
| 2020 | 1.3% |
| 2019 | 1.5% |
| 2018 | 1.6% |
| 2017 | 1.1% |
| 2016 | 1.1% |
Data for this article was sourced from BlockShopper.com. The original dataset is available here.
