Tax delinquency rates are rising again in 2025, hitting 5.1% YTD nationally. This report analyzes over 15M tax events from 8M non-escrowed loans to uncover where risk is growing and why. Includes state-by-state rankings, historical trends, and correlations between unemployment, affordability, and delinquency.
4.9%
average property tax delinquency in tax deed states
6.2%
average property tax delinquency in tax lien states
Leading risk indicator
Tax delinquency on non-escrow loans is often the first sign of financial distress—offering servicers an early warning system before mortgage defaults occur.
Geographic risk insight
The report helps identify which states are most vulnerable based on tax policy, unemployment, and income levels—informing smarter servicing strategies.
Affordability pressure
Property taxes rose over 27% nationally since 2019, with some states seeing annual increases of 10% or more. That strain is now showing up in payment behavior.
