11 Ways To Increase Your Chances of Winning a Property Tax Assessment Challenge

If you opened your property tax bill and were in for a shock, you're not alone. Real estate prices skyrocketed during 2021 and 2022, and tax assessors are just now starting to catch up to adjust tax bills to the increased property values.

But don't take your tax assessment as gospel. Your local tax assessor can be in error, and as a homeowner, you have the right to contest the increased tax evaluation. This may be intimidating, but we've put together some smart homeowner moves to help you easily navigate the appeal process and increase your odds of winning. 

Property values are constantly changing as the real estate market ebbs and flows. If you're wondering if your tax valuation is wildly out of whack, check to see what properties in the area similar to yours have sold for recently.

You can start your search with sites like Zillow and Trulia, though you'll get limited data if you live in a state that doesn't disclose the prices of real estate transactions.

Don't use listing prices, as the property's value is based on what it sells for. A seller can ask for the moon, but the tax value is based on the market's price. Using sale data between family members won't be a reliable data point either.

Condition matters when it comes to real estate value. If your home needs repairs, take photos of all issues and damage (bubbling paint, damaged siding, missing doors, leaks, etc.). During the appeals process, these pictures will prove that your house isn't as nice as your neighbor's and shouldn't be valued as high.

Need a new roof or HVAC system? That factors into your home's value, too. Help the tax office see how much by getting professional estimates on what these major fixes would cost (even if you plan to put off the repairs or do them yourself).

Many states offer a homestead exemption (also known as a primary residence exemption or owner-occupied rate), which reduces the value of your property when calculating property taxes.

Laws vary by state and can incorporate factors such as your age, whether you have dependents living at home, disability status, and property type. Check to make sure you're being taxed at the correct rate for your primary residence.

Your property tax statement could have an incorrect land assessment or size, the wrong square footage, age, number of rooms, and more. Check that everything on the tax statement matches everything you know about the property.

Talk to your neighbors to see if their tax assessments increased as much as yours. If they did, there may not be much you can do to contest the hike.

But if you find that your assessment is higher (while factoring in the size, age, and condition of your home) than those of the houses in your neighborhood, you may be successful at contesting your tax bill.

If you need more ammunition for your tax assessment appeal, you can hire an independent appraiser to evaluate how much your property is worth in the open market.

This can be especially helpful if your property is unique or much larger, smaller, older, or newer than the surrounding properties. You may have to pay between $314 and $600 for the appraisal, but this may be worth it if you can save more than that on taxes each year.

Usually, the appeal process begins by contesting the evaluation either with a mail-in form or online. If there is sufficient evidence to support your claim, the auditor may just approve it.

If they disagree with you, the appeal may advance to a hearing. You can make your case to the tax authorities by attending the hearing in person. It's harder to say no to a live person than a piece of paper.

During your hearing, keep your cool and constrain your arguments to the facts. The higher tax bill may strain your finances, but that's not enough reason for the assessor to change the assessment. Bring as much evidence as you can to support your claims, so you have a better chance to crush your debt. 

If local tax authorities don't approve your appeal, you can escalate the case to the state tax commission. This government body mediates disputes between taxpayers and assessors.

Ultimately, your assessment will only change if you can prove that the initial evaluation of your home's value was in error.

You may argue that your home is in poorer condition than others or needs expensive repairs. You can compare your home's higher assessment to those assessed for less. You can also check for any flat-out errors on your tax bill, such as omitting your homestead exemption or having the wrong number of bedrooms or square footage.

Bring any evidence you can to support your claim that your tax evaluation is too high. While the tax assessor may sympathize with the higher tax bill's financial burden, they can only change that number and eliminate some money stress if you prove it wrong.