Is it worth appealing your property tax assessment?

Property tax assessment papers and model of house

The median property tax bill in the U.S. increased by 2.8% between 2023 and 2024

(Image credit: designer491 / Getty Images)

The good news? You just found out your property's value has increased. The bad news? Your property tax bill has shot up along with it.

This is a situation that homeowners have faced frequently in "recent years" as a result of both "rising housing prices and local tax rates," said CNBC. Between 2023 and 2024, the median property tax bill in the U.S. increased by 2.8%, pushing it to $3,500, said the outlet, citing a report by Realtor.com.

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Why would you file a property tax appeal?

A property tax appeal allows property owners to "challenge the assessed value of their property for tax purposes," said Quicken Loans. This may be an appropriate step to take if you "believe that the assessed value is too high and does not accurately reflect the actual market value of [the] property."

Local governments assess property values to help determine how much property tax a property owner should pay. But "it's not uncommon for properties to be over-assessed, meaning you end up paying more in taxes than you should be," said CNBC, citing Pete Sepp, the president of the National Taxpayers Union Foundation. This often occurs "due to inaccuracies that were never corrected in your home's assessment," such as incorrectly noted square footage, added the outlet.

How can you file a property tax appeal?

Before filing an appeal, it is important to do your homework. For one, make sure to "check your property's record card," which is the "official description of your house," said Kiplinger. If you spot an "outright error," that is an easy fix and "will save you the trouble of a formal appeal." Also read up on local tax laws and how property taxes are calculated.

If everything checks out, start compiling information to make your case. This includes details on recent comparable sales in your area, blueprints, professional appraisals and property records. And if your home has "deferred maintenance or damage, provide photos and contractor estimates to fix it," said Realtor.com.

You will then submit your appeal, which is "usually a written protest form or online submission through the appraisal district," said Realtor.com. From there, the process can vary depending on your local government but may entail a review or hearing.

Are there any downsides to appealing your property tax assessment?

There is always the chance that "filing an appeal can work against you if the latest assessment undervalues your property," in which case "your property taxes could increase more than they already have," said Quicken Loans.

Filing will also take your time and effort, plus it will cost a "small filing fee," said Investopedia. Further, the "tax appeal generally requires the help of a lawyer," who "will charge you a fee — sometimes a part of your savings if your appeal is approved."

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.