You already know it. Higher property taxes affect home values. Now NAR has a state-specific presentation and report that shows what a reliance on property taxes do to home values. (NAR calculates that every $1,000 in property tax increases will decrease the value of a home $12,000 - $15,000.) You can also see property taxes by state, ranked by state along with median home values. Especially important for anyone working in two states!