Homer property tax rate climbs to 2.5% in 2025, highest in nearly a decade

Homer saw its effective property tax rate rise from 1.9% in 2016 to 2.5% in 2025—an increase of 0.6 percentage points across 10 years, according to BlockShopper.com.

Throughout Champaign County, the average effective property tax rate fell from 2.2% in 2016 to 2% in 2025, a shift of 0.2 percentage points over the same timeframe. Homer’s tax rate in 2025 remained above the county average.

Of the 27 cities reviewed in Champaign County, Homer experienced the second highest increase in effective property tax rates during this period.

Homer was also third in Champaign County in 2025 for its current effective property tax rate of 2.5%, compared with other cities in the region.

This rate stands at 2.8 times the United States average effective property tax rate of 0.888% in 2024.

National home prices kept increasing in 2025, with the national median reaching about $447,000 in June. This marks a 1.13% uptick from a year prior, according to Redfin. Their reporting also shows a notable gap between supply and demand, with 36% more sellers than buyers (a surplus of 508,715 homes). Redfin considers a market balanced if buyer and seller numbers differ by less than 10%.

Even as property tax rates fall or stay steady, homeowners may contend with higher tax bills when home values climb. Property taxes are determined by both the tax rate and the property’s assessed value, so increases in home prices can grow the tax base and boost the total owed even if tax rates drop. In fact, the average effective property tax rate on a median-priced home in the largest city in each state declined by over 5% from 2023 to 2024, according to a Lincoln Institute of Land Policy report.

At the same time, rising home values have expanded the tax base in many places. Because property taxes are based on market value, increasing home prices can result in higher tax bills, regardless of whether rates decrease or stay flat. Studies on U.S. housing markets reveal that a 1% uptick in median home value generally correlates with about a 0.71% reduction in the effective tax rate, highlighting how rising housing prices can lower rates but increase total revenue for governments.