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Many homeowners have seen an increase in property taxes in recent years due to rising home prices and rising local tax rates. However, property tax valuations are not always set to stones. Filing an appeal could reduce costs for years.
According to an April report on Realtor.com, the median US property tax bill in 2024 was $3,500, up 2.8% from $3,349 in 2023.
How much you pay depends a lot on where you live, and in some places you will see higher bills and larger increases.
As of 2023, the median property tax for homeowners in New York City was $9,937, according to a new report from LendingTree. The city is ranked first among the metropolitan areas with the highest median property tax. The top three are San Jose and San Francisco, California, where homeowners paid $9,554 and $8,156 respectively.
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More than 40% of US homeowners could save more than $100 a year by protesting their valuation value, Realtor.com estimates that savings of $539 a year can save.
“You’re saving a bank for years of saving,” said Pete Sep, chairman of the National Taxpayers Union Foundation.
That’s because some states or local governments require annual property tax reassessment, while others have less frequent cycles with a gap of several years. There are also some events that could lead to reevaluation, such as home sales and renovations.
Experts say here’s what you need to know before appealing a tax increase on fixed assets:
“You’re paying more than you should.”
A tax assessment is the way that officials determine the value of your property for tax purposes.
The market value of your home, or what it sells, is a major factor, but other factors can shake up the outcome. Ultimately, it depends on how you assess your property tax in your area.
“This is not a national ceremony,” said Melissa Kohn, regional vice president of William Ravis Mortgage.
However, it is not uncommon for real estate to be overvalued. So you’re going to pay more taxes than you should have, Sepp said. This can be caused by inaccuracies that were never corrected in your home evaluation.
For example, the rating should be noted that if it is actually 2,000 square feet, 2,500 square feet of livable space is cited, or if the home actually has three full and one half.
“These types are incorporated into your property valuation, and each year you pay more than you are home,” Sepp said.
NTUF estimates that 30% to 60% of U.S. taxable assets are overvalued based on reports from tax evaluators in individual states.
How to appeal
Singing for your assessment is “not a terrible and difficult investment in time for a residential property owner,” Sep said. “The process is pretty simple and fair.”
If you succeed, the change will usually take effect for the current tax year, which will be the basis for your next assessment, he said.
If you plan to appeal your taxes, your goal is to show that the evaluator is incorrectly applying the evaluation formula to your home, said Sal Cataldo, real estate lawyer and partner at O’Doherty & Cataldo in Saville, NY.
“We’re challenging the numbers that they’re connecting to the formula in your particular home,” he said.
Here’s how to get started:
1. Please check if your current rating is accurate
The first step is to check the accuracy of your own assessment. If it’s in a cycle, you’ll need to get an evaluation. You should also be able to find and request records online through county, city or district evaluators.
Make sure your home details are correct, including area and roof age.
If you notice it inaccurately, start collecting documents as evidence. For example, if the roof appears relatively new in ratings but is actually much older, look at the record of invoices from the contractor since it was repaired previously.
2. Compare your property with your neighbor’s home
Knowledge of other homes in your neighborhood and your nearest home is important. Because it helps you to appeal your tax bill, Kataldo said.
Tax records are public so you can know what your neighbors with similar homes are paying with taxes. If you’re paying more, it might indicate that your taxes may be overvalued, he said.
Also, Cataldo said they can check if they are paying less taxes because they are eligible for tax exemptions.
3. Check if you are eligible for tax exemption
You may qualify for tax-free in your town, city, county, or area.
Some of the most common exemptions cover eligible seniors, active military members, veterans, low-income households, or disabled people.
4. Please know your deadline
Be sure to meet repeat deadlines in your area to appeal your bill, Sepp said. Ratings may appear in fine print. The time frame for submitting documents can range, for example, from 30 to 45 days before that deadline.
5. Seek expert guidance
Sometimes it may be worth tapping on the guidance and advice of professionals, such as real estate agents or appraisers who are very knowledgeable about your area. They can help you compare the value of your home with you. Before you hire someone, research to understand what their services entail and what they charge.
