As a homeowner, you have the option to appeal your property taxes if you feel like your home’s assessed value is too high. If you believe your property has been overvalued compared to similar properties in your area or due to assessment errors (like incorrect square footage), a property tax appeal can potentially lower your tax bill and ensure you’re paying a fair amount.
The National Taxpayers Union Foundation estimates that 30 to 60 percent of properties are over-assessed. But less than 5 percent of homeowners will challenge this.
The average annual property tax bill has risen 5.1 percent, increasing to a median of $3,018. Individual factors vary, but if you’re among the homeowners overpaying by up to 60 percent, disputing might yield savings of over $1,800.
Before you begin, it helps to remember:
- Disputing your property taxes doesn’t mean you’re fighting with your local taxing body
- Really, it’s a matter-of-course; appealing property taxes is simply a request for review
- You won’t be penalized more in tax by requesting a review
- You can dispute your property tax on your own—without an attorney or real estate agent, though professional guidance can help
- Even if you bought your home this year, your property taxes may not necessarily be valued at the recent purchase price
You can dispute your property taxes in about the time it takes to read this step-by-step guide. For many homeowners, appealing is worth it, considering the hundreds to thousands of dollars a year you could save.
Why Do You Need to Dispute Your Property Taxes?
The two most common reasons homeowners dispute their property taxes are:
1. You realize you haven’t filed the correct exemptions
Exemptions may vary by state and can include a main residence exemption, veteran or disabled person status, assistance for senior citizens, and disaster relief. A homestead exemption could reduce your taxable home value by thousands of dollars in some states.
2. You suspect your home’s assessed value exceeds its true market value
Having an incorrect assessment is a lot more common than missing the correct exemptions. Remember:
- Changes to your property can change its value. A home that once had an inground pool but doesn’t any longer may have a new assessed value that must be reflected in a lower tax bill.
- Property taxes are based on the assessed value of the home. Sometimes, there are errors.
When Do You Need to Appeal Your Property Taxes?
Your property tax appeal deadline varies by the state and county you live in. In many states, there’s a small window to dispute property taxes in the spring.
Take two minutes now:
- Check with your county or use the National Property Tax Group calendar to find the deadline to dispute in your state.
Set a reminder to appeal your property taxes whenever your local taxing body sends its assessment of your home’s value. In some areas, that’s once a year. In others, it’s every few years. If you’ve suffered financial hardship, you can contact your county to see if you’re eligible for an extension or another form of tax relief.
Your Guide to Protesting Property Taxes in 5 Steps
These simple steps can help you prepare for filing and completing your property tax appeal:
1. Keep meticulous records of everything
If you want to come out ahead in the property tax dispute process, you’ll need to do the legwork. The most effective way to appeal property taxes is by taking care of the details first.
- Pay on time. Paying property taxes can normally be done online.
- Be organized. Keep copies of all paperwork related to your assessment and tax payment receipts.
- Find out who to talk to. Locate the office in your municipality that deals with property tax issues.
- Set a reminder. Use it to alert you of all the local deadlines you researched.
2. Contact your local assessor’s office
It’s always a good practice to ensure all deductions entitled to you are granted. This can happen when you first check your property assessment. You can also contact the local assessor’s office directly at any time.
- Check the assessor’s math. If the County Assessor reviews the grounds for your dispute and finds an error (like an incorrect number of bedrooms), your property tax amount may be corrected without the need to appeal.
- Review the description of your property. Look for missing details and check your lot size and for structural accuracy.
- Compare this information. It can help to contrast your property against at least five equivalent homes in your neighborhood.
3. Contact your real estate agent
You can look up comparable properties on your own to complete the steps above, but it may be easier to request them from your agent.
- Chat with your agent. See if they’re willing to help you pull five comparable sales to show the county what your property is actually worth.
- Ask about cost. Many agents will be more than happy to give you these comps at no charge.
- Consider their opinion. Based on their knowledge of local comps in your area, your real estate agent can provide you with helpful insight on whether they think an appeal is worth making.
4. Contact your local assessor’s office again to set up an appointment
If the first three steps check out, meaning you believe you’ve missed some exemptions you’re entitled to or that your property value assessment is too high, you’re now ready to take step four.
- Call your local assessor’s office. Set up an appointment to appeal. If a letter is required to make the appeal, submit using this sample format.
- Fill out the property tax assessment appeal application. It can be found on your county tax website. Then, follow the necessary instructions.
- File your completed appeal application. Submit it to the county tax clerk, either in person or through the U.S. mail.
- Pay any required fees. The cost to appeal property taxes is normally charged upfront and varies by area and property value.
- Wait for a confirmation postcard. This will tell you when the application arrives, normally sent within two weeks.
5. Make your appeal
It’s the big day. If you’ve completed steps one through four, you have the power of preparedness on your side. Most taxing bodies make it clear how to dispute your home’s property taxes. As a homeowner, the smartest thing you can do is be thorough and meet posted deadlines.
- Take it higher. If you aren’t happy with the decision and believe you have proof your property taxes have been over-assessed, you can appeal to your state’s appraiser or the Superior Court.
- Find out whether your city allows you to appeal in writing. Otherwise, they may require your attendance at the appeal.
- Gather all the relevant info. This may include items needed for your appeal, like recent sales information for properties in similar condition and of similar age.
- Be prepared to argue. You’ll get about five minutes to appeal before the local Board of Review.
- Wait for a decision. The outcome of your dispute may be announced at your hearing, or the board may review the matter in private.
When in Doubt: Reach Out to Your Loan Officer for Help
If you’ve done all you can, and your tax bill still won’t budge, it may help to get in touch with your local loan officer. Although your loan officer can’t directly lower your property taxes, they can review your mortgage and suggest ways to potentially reduce its overall costs.
*Sources deemed reliable but not guaranteed. For educational purposes only. Cornerstone Home Lending does not provide tax or legal advisory services. Please contact a qualified professional for specific guidance.