As property values and tax rates keep marching upward, homeowners all over the United States are being hit with dramatically growing property tax bills. As of 2024, the national median property tax bill in the U.S. has reached $3,500. This is a 2.8% increase over the $3,349 bill in 2023. Here are five top recommendations from real estate experts about reviewing property tax assessments. By successfully protesting their final assessment value, more than 40% of homeowners stand to save $100 or more annually!
The increase in property taxes due to this policy shift can have a huge impact on family budgets. Metropolitan area homeowners are consequently up against some dreadful property tax burdens. This year, New York City is the worst by a mile, with an unbelievable median property tax of $9,937. Other expensive high-tax cities are San Jose, California at a median of $9,554 and San Francisco at $8,156. Reason #3: Homeowners need to understand that homes can be over-assessed. Although many homeowners do understand this, many do not. This frequently results in tax bills that are unjustifiably inflated.
It’s true that some state and local governments don’t want to rely on property taxes initially. Many governments run on much slower cycles, with gaps that can last for years. Homeowners probably have all the necessary paperwork from when they got their new home. These papers will arm them to take on their property assessments full of errors and omissions. Things like square footage or number of bathrooms are frequently misreported, resulting in higher tax bills than are warranted.
Sal Cataldo, a Chicago-based real estate attorney, underscores the pragmatic value of this process by explaining,
“You’ve gotten a wealth of information about your house, whether you realize it or not.”
By taking a closer look at their property tax assessments, homeowners can spot inconsistencies that otherwise would have slipped under the radar. The median savings for people who win a protest of their assessment value is about $539 annually. This is a big number, sure, but it shows that there’s a major financial incentive to act.
Homeowners need to be more vigilant in checking their assessments and learning how local policies impact their property taxes. First, a little preparation goes a long way. Second, get to know the actual criteria that local governments use in their assessments.
In most instances, people will quickly realize that their property’s assessed value is out of step with the market right now. When they protest these assessments, they can get correct any inaccuracies and thus protect themselves by lowering their tax bills. The exact process depends on the locality but typically involves submitting an application and sometimes making your case at an administrative hearing.