How to appeal your property tax assessment and save money

[UNITED STATES] Many homeowners across the U.S. are facing higher property tax bills, driven by escalating home prices and shifting local tax policies. But for those willing to do a bit of homework, appealing a property tax assessment can lead to substantial, long-term savings.

According to an April 2024 report from Realtor.com, the median property tax bill rose to $3,500 this year—up 2.8% from $3,349 in 2023.

Some states have experienced even steeper increases. In Texas, where the absence of a state income tax means property taxes play a critical funding role, average tax bills jumped nearly 5% year-over-year, per the Texas Comptroller. Fast-growing cities like Nashville and Phoenix have also seen sharp increases, with some neighborhoods experiencing double-digit percentage hikes—prompting homeowners to reassess their financial plans.

Where You Live Makes a Big Difference

Property tax bills vary widely based on geography. In 2023, New York City topped the list of U.S. metropolitan areas with the highest median property taxes, at $9,937, according to LendingTree. San Jose, California followed at $9,554, and San Francisco came in third at $8,156.

While higher tax bills in these areas often align with more robust public services, inconsistent assessment practices can lead to inequities. A 2023 study by the Lincoln Institute of Land Policy found that lower-value homes are often over-assessed compared to their market value, while higher-value homes tend to be under-assessed—disproportionately affecting lower-income homeowners.

Realtor.com estimates that more than 40% of homeowners could potentially reduce their annual tax bills by $100 or more through successful appeals. The median savings from such appeals? Roughly $539 a year. “You’re banking on several years of savings,” said Pete Sepp, president of the National Taxpayers Union Foundation (NTUF).

Assessment Frequency Varies—and So Do Your Rights

Property reassessments don’t happen on a standard national schedule. While some local governments reassess annually, others go years without revisiting property values. Events like a home sale or major renovations can also trigger reassessments.

Recent legislation has given homeowners more tools to challenge tax hikes. Florida, for example, now requires assessors to provide more detailed breakdowns of valuation increases. In Illinois, remote hearings for appeals—introduced during the pandemic—have been made permanent.

Staying up to date on these changes can help homeowners better navigate the appeals process.

Understanding Your Assessment

A property tax assessment estimates the value of your home for taxation. This is based largely on market value, but other factors—like square footage, recent upgrades, or neighborhood trends—play a role. The process and formulas vary by location.

“There’s no nationwide formula,” said Melissa Cohn, regional vice president at William Raveis Mortgage.

But errors do occur. Over-assessments happen more often than many realize, said Sepp. Common inaccuracies include overstated square footage or incorrect bathroom counts.

“You might be paying based on an assumption that your home has 2,500 square feet when it really has 2,000,” Sepp explained. “These details get locked into the assessment, and year after year, you’re overpaying.” NTUF estimates that 30% to 60% of taxable property in the U.S. may be over-assessed.

Tech Tools and AI Are Making Appeals Easier

Technology is helping level the playing field. Websites like Zillow now let homeowners compare assessed values with nearby properties. Many local government portals also provide access to tax records. In some counties, AI-powered chatbots assist with appeals—though experts caution that human oversight is still essential to catch nuances in property data.

How to Appeal Your Property Tax Assessment

Appealing a property tax assessment is often a straightforward process. “It’s not a terribly difficult investment of time for a residential property owner,” said Sepp. “The procedures are generally easy and fair.” If your appeal is successful, the change typically applies to the current tax year and influences future assessments.

Key steps to follow:

Review Your Current Assessment: Start by verifying the accuracy of your property record. You should be able to access this online via your city, county, or district assessor’s office. Look for errors in square footage, bathroom count, roof age, and other details.

Gather Documentation: If you find inaccuracies, collect documents to support your case. This might include contractor invoices, old appraisals, or your home inspection report.

Compare with Neighboring Homes: Public records can show what nearby, similar homes are paying in taxes. If your property is taxed higher without justification, that could support your appeal. Also check if neighbors are receiving exemptions you may qualify for.

Explore Tax Exemptions: Many areas offer exemptions for seniors, veterans, people with disabilities, and low-income households. Check your local regulations to see what’s available.

Know the Deadlines: Appeal deadlines vary, and some jurisdictions allow only 30 to 45 days after receiving your assessment notice. Make sure you know your local timeline.

Seek Professional Help if Needed: If you're unsure about the process, consider consulting a knowledgeable real estate agent, appraiser, or tax attorney. Be clear on what their services include and what they’ll charge.

The Bottom Line

With rising property tax bills hitting homeowners nationwide, understanding and potentially challenging your assessment could lead to meaningful savings. As more tools and protections become available, it’s worth checking if you’re paying more than your fair share.