{"id":22043,"date":"2025-10-31T17:53:43","date_gmt":"2025-10-31T17:53:43","guid":{"rendered":"https:\/\/budgetadirect.com\/?p=22043"},"modified":"2025-10-31T17:53:46","modified_gmt":"2025-10-31T17:53:46","slug":"your-property-tax-bill-may-be-higher-than-it-needs-to-be-heres-what-to-do-about-it","status":"publish","type":"post","link":"https:\/\/budgetadirect.com\/?p=22043","title":{"rendered":"Your Property Tax Bill May Be Higher Than It Needs To Be. Here’s What To Do About It"},"content":{"rendered":"
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My property taxes have ballooned 134% over my 20 years of homeownership. It seems like every year I grumble about another increase, pay the bill and move on. Recent data, however, has me rethinking my approach \u2014 it turns out I might be leaving serious money on the table.<\/p>\n

More than 40% of properties in the U.S. could save $100 or more \u2014 and sometimes much more \u2014 with a property tax appeal, according to a Realtor.com analysis. For millions of homeowners, the savings could add up to about $539 annually, and that\u2019s just for a median property. You could save more (or less) depending on where you live.<\/p>\n

\u201cSomewhere between 3% and 5% of homeowners actually file an appeal, and of those, between 30% and 50% win some kind of reduction,\u201d says Pete Sepp, president of the National Taxpayers Union, a nonprofit, non-partisan taxpayer advocacy organization based in Washington, D.C. In other words, there\u2019s a real chance to save money.<\/p>\n

Take Tomball, Texas-based homeowner Russell Lindley, who has appealed property taxes for 10 of the 11 homes he\u2019s owned with his wife. He says he\u2019s succeeded more than half of the time.<\/p>\n

\u201cWhy would you allow them to assess a value on your house and not protest to try to save money?\u201d he asks. \u201cThe largest property tax reduction I received was approximately $3,000 in a single year.\u201d<\/p>\n

Filing a formal request asking your assessor to review and possibly lower your home\u2019s assessed value \u2014 and, in turn, your tax bill \u2014 can be a chore, but it can also put substantial money back in your pocket.<\/p>\n

Even long-time housing reporters like me can miss opportunities to save money, and now I\u2019m on a mission to help you avoid my mistake. Let\u2019s break down what happens before, during and after the appeals process so you have the best shot at lowering your tax bill.<\/p>\n

The assessment process isn\u2019t perfect <\/h2>\n

Before we dive into property tax appeals, let\u2019s step back and pull back the curtain on what went into determining the amount on that dreaded tax bill to begin with.<\/p>\n

While every state, county or township uses its own formula to assess property value, one thing is the same: Property tax assessments typically rely on mass data, not a personal inspection of your home.<\/p>\n

\u201cThey basically put in all the data and spit out all the numbers,\u201d explains Colton Pace, co-founder of Ownwell, a company that helps homeowners appeal their property taxes. \u201cIt works much of the time, but it inevitably produces misdiagnoses. That means the model often misses unique property traits, interior condition or hyper-local market nuances.\u201d<\/p>\n

Armed with that data, the assessor sets your home\u2019s assessed value, multiplies it by the local tax rate (set by your city, county, or school district), and voil\u00e0, that\u2019s your property tax bill.<\/p>\n

\u201cIt\u2019s not necessarily evil intent or anything like that,\u201d Sepp says. \u201cIt\u2019s just that there are a lot of properties to assess and local governments have to figure out a way to do that quickly and efficiently.\u201d<\/p>\n

2 steps to building and winning your appeal <\/h2>\n

So what exactly does it take to build a successful case? Sepp advises homeowners to begin with evidence-based homework, focusing on two key aspects: the accuracy and comparability of the property\u2019s assessment.<\/p>\n

Are there any mistakes in the assessment? <\/h3>\n

\u201cAccuracy has to do with simple errors the assessor makes,\u201d Sepp says. \u201cThere are only two bathrooms in your house, not three. It\u2019s a one-car garage, not a two-car garage. Sometimes you can bring those up with the assessor without even filing a formal appeal. You may be able to call them and say that this just isn\u2019t right.\u201d<\/p>\n

\n Star Icon<\/title>\n<\/svg> <\/p>\n

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\n Keep in mind:
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\n Your property record card can be a goldmine. You can get that online through your city assessor\u2019s site or by contacting your local tax assessor. Look for mistakes like incorrect square footage, or the wrong number of bathrooms or bedrooms. Even small errors can significantly affect the assessed value of your home, providing you with more ammunition.\n <\/p>\n<\/div>\n

In the appeal, you can (and should) include photos, repair estimates or contractor quotes to show your home\u2019s true condition. Sepp says some things, like an outdated 1980s kitchen, probably won\u2019t move the needle because they are subjective. But clear, tangible issues, like multiple leaks in your roof? Absolutely.<\/p>\n

How does your house compare to similar homes?<\/h3>\n

The next case builder is researching the comparability of the assessment, which involves looking at recent sales of similar homes in your neighborhood.<\/p>\n

\u201cLook up the values, not only the sale values, but the values the assessor has for similarly situated properties in your neighborhood,\u201d says Sepp. \u201cWhat are five, better yet, 10 properties in your neighborhood that were assessed? \u2018What were their levels on a per square foot basis, and do they compare with your property\u2019s assessment on a per square foot basis?\u2019 <\/p>\n

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If there\u2019s a big difference, and by big I mean 10% or more, then you have solid proof to make your appeal.<\/p>\n

\u2014 Pete Sepp<\/cite>
\n President of the National Taxpayers Union<\/span>\n <\/p><\/blockquote>\n

But here\u2019s where things can get a little tricky. Some areas use a fractional assessment system, meaning your property isn\u2019t taxed on its full market value. Instead, they tax a percentage of your property\u2019s market value, like 90%, for example. Because of the methods used, it can be harder to compare your property\u2019s assessed value to recent home sales. Another important consideration: In most jurisdictions, the sale price of your home isn\u2019t considered the same as the assessed value, and those numbers can be wildly different.<\/p>\n

Chang Fu learned this lesson firsthand. When Fu and his wife lived in Seattle, he successfully appealed his property taxes in 2019 by using his home\u2019s sale price as evidence, saving $1,000 a year. When he moved to Austin, Texas, he tried the same approach when appealing his property taxes in 2025 and was denied. Now in arbitration, Fu is confident he can present a stronger case by comparing his property\u2019s assessment to that of similar homes as well as its current market value.<\/p>\n

\u201cI literally have six neighbors in my cul-de-sac and my six neighbors all have lower [home] values,\u201d says Fu. \u201cI\u2019m hoping to get a fair arbitration and, ideally, a positive outcome so I can pay similar property taxes as my neighbors.\u201d<\/p>\n

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\n An appeal could send your bill down \u2026 or up
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<\/p>\n

\n Nobody wants to pay higher property taxes. The reality, however, is that appealing your taxes won\u2019t always lead to a lower bill. In rare cases, a closer look could show that your home was underassessed. So before blindly appealing, do some preliminary research to see that you don\u2019t inadvertently draw attention to any errors in the original assessment that could work against you. The assessor may also discover home improvements that weren\u2019t previously reported, potentially raising your home\u2019s assessed value. But still, if you believe your assessment is incorrect, it doesn\u2019t mean you shouldn\u2019t try to appeal.<\/p>\n<\/p><\/div>\n

The burden of proof isn\u2019t always on you <\/h2>\n

The success or failure of your appeal could have a lot to do with where you live. For example, in Indiana, if the assessment has increased by more than 5%, it\u2019s up to the assessor to prove their findings are correct. As Pace notes, homeowners in assessor-burden-of-proof states like Indiana tend to have much higher appeal success rates. While that might sound like an advantage, it doesn\u2019t mean homeowners don\u2019t have to do any research.<\/p>\n

\u201cEven if the assessor has the burden of proof that, that doesn\u2019t mean you have the ability to say, \u2018Well, I think [my house] should be valued at $1,\u2019\u201d says Sepp. \u201cYou have to have some kind of basis to say, \u2018He [the assessor] says he\u2019s proven his case. Here\u2019s why I disagree.\u2019\u201d<\/p>\n

The not-so-good news? Pace says that in approximately 80% of geographies, the responsibility for proving the case flips to property owners or the tax agent, which is the company helping the homeowner with the appeal. This can make it harder for homeowners to win, and as Pace explains, \u201cThis is a higher burden than convicting someone of a crime. It\u2019s not [just] beyond a reasonable doubt. You have to completely show that they are wrong.\u201d<\/p>\n

While it\u2019s not impossible to win in these cases, research and preparation are critical.<\/p>\n

The appeals process isn\u2019t as intimidating as you think <\/h2>\n

The idea of appealing your property taxes can sound daunting, but Sepp says it\u2019s not as scary as it seems.<\/p>\n

\u201cIt\u2019s not as if you\u2019re going to be put before a tribunal and interrogated about all of the features of your house,\u201d he says. \u201cMost assessment appeals processes are set up to be no more difficult than traffic court. If you feel you got a parking ticket that you didn\u2019t deserve, you gather evidence to show why you feel that way, and you present it to a panel that\u2019s hearing a couple of dozen of these things a day. You\u2019re not on trial. You\u2019re simply being asked to present evidence of why you have the opinion you do.\u201d<\/p>\n

The process of appealing has also become easier with services that provide comparable property assessments and online access to records. \u201cEven in the assessor\u2019s office itself, there are AI tools that can probably help you with preparing an appeal,\u201d says Sepp. \u201cAnd in some jurisdictions, which occurred a lot during COVID appeals, hearings are often held online, or you can file an appeal by mail.\u201d<\/p>\n

After the appeal, you\u2019ll receive a written notice of the decision and the reason behind it. If you disagree, you can often appeal to a higher board. The total time frame varies depending on where you live and the complexity of the case.<\/p>\n

You can go it alone or get assistance <\/h2>\n

Nothing says you can\u2019t DIY your property tax appeal. Many homeowners, like Fu, go that route. \u201cIf you\u2019re comfortable doing it yourself, go do it,\u201d he says. Keep in mind that you will likely have to pay a small appeal fee, which can vary depending on where you live or the value of the property.<\/p>\n

But if you\u2019d rather not go it alone, there are companies, like Ownwell, that offer professional assistance, charging a fee only if they successfully reduce your tax bill. \u201cYou hire a doctor to solve your problems, why not hire an expert?\u201d says Lindley, who used property tax negotiation services for most of his property tax appeals. \u201cYou don\u2019t pay money unless they save you money. It always seemed like a no-brainer to me.\u201d<\/p>\n

If your situation is complicated or you have a high-value property, Amy Loftsgordon, legal editor at legal resource Nolo, says it might make sense to hire an attorney or a reputable tax reassessment company. However, she cautions homeowners against using reassessment companies that try to solicit business from you.<\/p>\n

\u201cThey send out notices that look something like a tax bill and say you might be entitled to reduce taxes,\u201d says Loftsgordon. \u201cThis is without making it very clear that they\u2019re a profit company and that [a property tax appeal] is something that you can indeed do on your own. Typically, a reputable company isn\u2019t going to send you tricky advertising or contact you.\u201d<\/p>\n

Move fast on the appeal; the clock is ticking <\/h2>\n

Once you get that property tax assessment notice in the mail, don\u2019t wait to act on it. While the proposed assessments may take effect in the upcoming fiscal year or the latter half of the current one, it doesn\u2019t mean you have plenty of time to respond.<\/p>\n

\u201cTypically, when you get the thing in the mail, you have between 30 and 60 days to either give notice or file your appeal,\u201d says Sepp. \u201cIf you have a 30-day deadline to file an appeal, it may be a very simple matter of filling out a form that says, \u2018I disagree with my assessment because it\u2019s overvalued compared to other properties.\u2019 You may not have to submit all of your evidence at that point. You just have to put in the appeal, then your hearing date will be scheduled. It then triggers another two weeks or so for you to file all of your stuff online or through the mail.\u201d<\/p>\n

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\n Miss the deadline, and you\u2019ll have to wait until next year to challenge your assessment. Property values and market conditions can change, so it\u2019s worth reviewing your notice carefully each year. And nothing says you can\u2019t appeal every year if you believe your assessment is consistently too high.<\/p>\n<\/p><\/div>\n

The bottom line<\/h2>\n

Appealing your property taxes might sound tedious, but it\u2019s a commonly overlooked way to save money as a homeowner. \u201cMaking the assumption that the government has done its homework would be a mistake,\u201d Sepp says.<\/p>\n

I will be tackling my own appeal next year, so stay tuned for that. The key takeaway? Don\u2019t assume your bill is set in stone. Taking the time to double-check your property assessment and file an appeal when the numbers don\u2019t add up can translate into hundreds, even thousands, of dollars in savings every year. Your wallet will thank you. <\/strong><\/i><\/p>\n

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