How to Lower Your Property Taxes

Property taxes are one of the biggest ongoing costs of homeownership. And while they’re necessary for funding schools, roads, and emergency services, many homeowners are paying more than they should—especially if their home’s value has been overestimated.

Here’s a practical guide on how to lower your property taxes, step by step:

1. Understand How Your Property Taxes Are Calculated

Before you can challenge your taxes, it helps to know how they’re determined. Most counties calculate your property tax using this formula:

Assessed Value × Local Tax Rate = Annual Property Tax

• The assessed value is what the local assessor believes your home is worth—not necessarily market value.

• Tax rates vary by city, county, and school district.

2. Review Your Property Tax Assessment

You typically receive a Notice of Assessment each year. Check it for:

• Square footage errors

• Incorrect number of bedrooms or bathrooms

• Features you don’t have (finished basement, pool, etc.)

If there are discrepancies, you may have a strong case for reassessment.

3. Gather Evidence and Comparable Sales

To contest your tax bill, you’ll need proof:

• Recent photos of your home (especially if it needs repairs)

• Comparable sales of similar homes in your area with lower values

• A recent appraisal (optional but helpful)

Your local real estate agent can help pull comps or connect you with a licensed appraiser.

4. File a Formal Tax Appeal

If your research shows your assessment is too high:

1. Visit your local assessor’s office website for instructions.

2. Complete the appeal form before the deadline (usually 30–90 days after the notice).

3. Present your supporting documents.

Some counties let you appeal online, by mail, or in person.

5. Make Strategic Improvements—But Carefully

Certain upgrades (like remodeling a kitchen or adding a deck) can raise your tax bill. If you’re planning to appeal, avoid major improvements until your case is settled.

Tip: Some states offer homestead exemptions or tax relief programs for seniors, veterans, and disabled homeowners—check if you qualify.

6. Hire a Property Tax Consultant (Optional)

If your appeal is complex or high-stakes, a property tax consultant can handle the process for a fee (often only if you win). This can be worthwhile for luxury or investment properties.

Final Thought

You can’t avoid property taxes—but with a little research, strategy, and timing, you can reduce them fairly. Even small reductions can save thousands over time.

Need help reviewing your home’s value or gathering comps for an appeal? I’d be happy to assist or connect you with local resources.