8 Reasons Your Property Tax Assessment Could Be Wrong (And How To Fight It)

Homeowners across the country cannot escape the burden of property taxes. Although this is an unavoidable part of homeownership, a mistake in your property tax assessment can make matters worse.

One smart homeowner move that can prevent you from overpaying on taxes is to look for the following ways your property tax assessment could be wrong.

In all of the following situations, filing an appeal might result in a lower property assessment, saving you money in taxes.

If you recently purchased your home, the assessment you receive in the mail might not match the price you paid for the house.

If you finalized a purchase for less than the assessment value, contact your property appraiser to request more information.

Property values often change over time due to shifting conditions in the real estate market. A local downturn, natural disaster, or other change could significantly impact your property’s value.

If your property’s value falls, the assessment might no longer match what the home is truly worth.

If similar properties in your area are assessed at a lower value, you will face higher property taxes than your neighbors.

So, compare your property to theirs. In some cases, your property may be worth more due to specific features of your home.

But if you find yourself comparing apples to apples and think your property is being assessed higher, consider filing an appeal.

If the value of your land drops, the tax assessment might not accurately reflect its current value. Researching recent land sales in your area can help you get a better idea of the land’s value.

Many assessors base the value of your home partially on square footage. An inaccurate estimate of your home’s square footage could lead to an incorrect valuation of the home.

If you notice that the square footage of your home is incorrect on your property tax assessment, take action. In some cases, you might need to hire a professional to measure the home and submit the accurate numbers to the tax assessment office.

Errors by the tax assessor’s office can lead to an inaccurate property assessment. For example, incorrectly listing the number of bedrooms or bathrooms could throw off the assessed value of your home.

Properties depreciate over time. Wear and tear and physical aging can eat away at a property’s value.

If the tax assessor hasn’t taken depreciation into account, you might face an unnecessarily high property tax bill. Document the signs of depreciation and file an appeal.

When determining the value of a rental property, an assessor often considers its rental market value and standard vacancy rates.

If your property pulls in less than market-value rent or has an above-average vacancy rate, its actual value might be less than the assessed value.

Although homeowners cannot avoid property taxes, they can monitor their home’s assessed value to ensure they aren’t overpaying.

If you are a homeowner who wants to lower costs, keeping a close eye on your tax assessment is a homeownership move that can pay big dividends.