How to Appeal Property Taxes: A Guide to Challenging Your Assessment and Saving Money

Rising home values have led to higher property tax bills for many homeowners. However, a significant number of these assessments may be inaccurate. According to a recent industry report, nearly half of all homeowners could be over-assessed and may be able to lower their tax bill by filing an appeal. Successfully challenging your assessment is a practical process that, with the right preparation, can save you hundreds or even thousands of dollars annually. This guide outlines the steps to determine if your bill is too high and how to build a compelling case for an appeal.

How Are Property Taxes Calculated?

Your annual property tax bill is not a random figure; it is determined by two main components: the assessed value of your home and the mill levy (or tax rate) set by local taxing districts.

• Assessed Value: This is the dollar value assigned to your property by a local government assessor for tax purposes. It is often a percentage of your home's market value.
• Mill Levy: This is the tax rate applied to your assessed value. One mill equals $1 of tax for every $1,000 of assessed value.

To calculate your bill, multiply your home's assessed value by the total mill levy. For example, a home with an assessed value of $400,000 in an area with a total mill levy of 0.013 (or 13 mills) would have an annual tax bill of $5,200 ($400,000 x 0.013).

It's critical to understand that state and local laws can complicate this calculation with caps on annual increases, which are designed to protect homeowners from sudden spikes but can also create confusion.

What Should You Check Before Appealing?

Before initiating an appeal, review your assessment notice and local regulations. Key areas to investigate include potential exemptions and strict filing deadlines.

Many local governments offer property tax exemptions that can significantly reduce your bill. Common types include:

• Homestead Exemption: For primary residences.
• Senior Citizen or Veteran Exemptions: For eligible individuals.
• Disability Exemptions: For homeowners with disabilities.

Eligibility and application processes vary by jurisdiction. As Andrew Reichek, a Texas real estate broker, notes, “Each jurisdiction has its own set of processes.” Missing a deadline for an exemption or an appeal can mean waiting another year, so verify these dates with your local assessor’s office.

How Do You Build a Strong Case for an Appeal?

If you believe your assessment is higher than your home's actual market value, you can appeal. The goal is to prove that the assessor's valuation is incorrect. Success hinges on providing solid, factual evidence.

Gather the following documents to build your case:

1. Recent Comparable Sales (“Comps”): Collect data on similar homes in your neighborhood that sold recently for less than your assessed value. Focus on properties with comparable square footage, beds, baths, and condition.
2. Independent Appraisal: A recent professional appraisal can provide a strong, third-party opinion of your home's value.
3. Photos and Documentation: Provide photos highlighting any issues that detract from your home's value, such as needed repairs or structural problems, that the assessor may have overlooked.

Reichek emphasizes that “most errors come from assessments being too high,” often due to outdated data. Presenting clean, factual data is the most effective strategy.

What Is the Appeals Process?

The formal appeal process typically involves submitting your evidence and, in many cases, attending a hearing.

1. File a Formal Appeal: Submit your appeal and supporting evidence to your local assessment appeals board before the deadline.
2. Present Your Case: At the hearing, present your facts clearly and professionally. Counties are more receptive to well-organized data than emotional appeals. You generally do not need an attorney.
3. Receive the Decision: The board will mail you a written decision, usually within a few weeks. If successful, your tax bill will be recalculated based on the lower assessment.

If your appeal is denied, you may have options for a second-level appeal or litigation, but these are often more complex and costly.

To maximize your chances, start by thoroughly reviewing your assessment notice for errors in square footage or room count. Then, research recent sales of comparable homes in your area to see if your assessment aligns with market trends. Acting before the deadline is the most critical step.