Are Your Property Taxes Too High? How to Know When to File an Appeal

Recent studies show that between 30-60% of taxable properties have inflated assessments, leading to higher property tax bills for homeowners. Interestingly enough, less than 5% of taxpayers typically take the initiative to dispute their assessment.¹

If you suspect that the value of your property has been assessed too high, there are steps you can take to appeal with your local government and potentially win a lower assessment. This can result in hundreds or even thousands of dollars saved annually in future taxes.²

While the process and requirements of challenging your property value assessment can vary from state to state, here are some key considerations that can help you win your appeal.

Crunching the Numbers: Is an Appeal Justified?

Whether or not you feel that your current assessment is unfair or inaccurate, you will still need to gather facts that support your claim. One way to do that is to see how your home compares to similar homes in your neighborhood or surrounding area.

Check to see if there are any obvious errors in things like square footage, the number of bedrooms and bathrooms, or home improvements that have been made since the last assessment. Setting the record straight could be as simple as bringing these inconsistencies to the assessor’s attention.

Weigh the Costs and Benefits

It’s important to remember that the process of appealing your property assessment may cost you money depending on its complexity and whether you choose to leverage other professional resources.

You are ultimately the final arbiter when it comes to evaluating costs associated with uncertain financial benefits, but consulting with an advisor may help you determine if an appeal makes the most sense for you. For instance, spending $1,500 now to save a couple hundred dollars per year may not align with your current financial goals.

Consider Using an Independent Appraiser

When it comes to property appeals, using an independent appraiser for market evaluation could provide more credibility to your claim than a local real estate agent. A comparative appraisal will carry considerably more weight when it is performed by a credible, third-party expert.

Follow the Rules and Take Action

Appeals have precise deadlines and involve specific processes that must be followed; otherwise, you run the risk of losing out on your chance for a reassessment for another year. Reach out to your local officials and familiarize yourself with the rules of your local government to ensure you’re well-acquainted with the ins and outs of the appeal process.

Once you’re armed with the knowledge that you need to move forward with an appeal, the next step is to take action. If you have questions about whether an appeal makes sense for you or simply want to learn more about the process, consult with an advisor today or reach out to your current tax professional for more information.

¹NTU.org, 2023

²The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.