Can You Get Your Property Taxes Lowered?

Homeowners can reduce their annual property tax obligations by understanding how the tax is calculated, scrutinizing their home’s official valuation, and building a case for a lower assessment. It is also possible to lower a tax bill by qualifying for specific relief programs offered by local governments. This guide provides a framework for homeowners to engage with the systems that determine their property tax.

Understanding Your Property Assessment

A property tax bill is the result of two figures: your home’s assessed value and the local tax rate. The assessed value is determined by your local government’s assessor and represents the property’s value for taxation. This figure is distinct from the market value, which is the price your home would likely sell for. Assessors may only re-evaluate properties on a set cycle, meaning the assessed value can differ from the true market value.

In many jurisdictions, the assessed value is a predetermined percentage of the full market value, known as an assessment ratio. For example, if a home has a market value of $400,000 and the local assessment ratio is 80%, its assessed value would be $320,000. This valuation is the figure a homeowner can directly challenge.

The second component is the tax rate, often called a mill rate, where one mill represents $1 of tax for every $1,000 of assessed value. This rate is set by local bodies like cities, counties, and school districts to fund public services. The total tax rate is a combination of the rates from all applicable taxing authorities in your area.

The final tax bill is calculated by applying the combined tax rate to your property’s assessed value. For instance, with a $320,000 assessed value and a total mill rate of 25 mills, the tax bill would be $8,000 ($320,000 / 1,000 x 25). While homeowners cannot appeal the tax rate, they can appeal the assessed value that forms the foundation of the calculation.

Gathering Evidence to Challenge Your Assessment

A successful property tax appeal requires a well-documented case showing that your property’s assessed value is inaccurate or unfair. The primary types of evidence to gather include:

• Review your property record card from the assessor’s office for factual errors. A mistake, such as incorrect square footage or listing a fireplace that doesn’t exist, can be a straightforward basis for a correction.
• Research comparable properties, or “comps.” These are homes similar to yours in location, age, condition, and size that have recently sold for less than your property’s estimated market value or are assessed at a lower value.
• Document your property’s condition if it has significant issues that detract from its value, such as a failing roof, foundation cracks, or serious plumbing problems. Take clear photographs of the defects and consider obtaining written repair estimates from contractors.
• Hire a licensed professional appraiser for an independent, third-party opinion of your home’s market value. A formal appraisal report can be a persuasive piece of evidence that directly counters the assessor’s valuation with a detailed, market-based analysis.

Applying for Property Tax Exemptions

Separate from challenging your property’s valuation, you may lower your tax bill by qualifying for property tax exemptions. These provisions reduce the taxable value of your property based on the homeowner’s personal circumstances, such as age, income, disability, or veteran status. The availability and requirements for these programs are determined by local and state governments.

One of the most common programs is the homestead exemption, available for a property that serves as the owner’s principal residence. This exemption works by subtracting a fixed dollar amount or a percentage from the property’s assessed value. To qualify, you must own and occupy the home as your primary residence.

Many jurisdictions also offer exemptions for senior citizens, often requiring the homeowner to meet an age threshold, such as 65, and sometimes an income limit. Exemptions are also frequently available for individuals with qualifying disabilities. Military veterans, particularly those with a service-connected disability, may be eligible for significant property tax relief.

Applying for these exemptions involves submitting a form to the local assessor’s office by a deadline. You will be required to provide documentation to prove eligibility. This could include a driver’s license to prove residency, income statements, or a disability rating letter from the Department of Veterans Affairs. Some exemptions may renew automatically, while others may require an annual application.

The Formal Appeal Process

Once you have gathered your evidence, the next step is to initiate the formal appeal. This process is governed by strict deadlines, which are stated on your assessment notice. The appeal window is often 30 to 90 days and begins on the date the notice is mailed, so postal delays can shorten your time to act. You must identify the deadline and the correct local body for submission, such as the Assessor’s Office or a County Board of Review.

Submitting the appeal involves completing the required complaint form and attaching your evidence package. Most jurisdictions allow for submission through an online portal, though mail or in-person delivery are often still options. Ensure your submission is complete and follows all instructions provided by the appeals board.

After your appeal is filed, the process may begin with an informal review. An assessor may contact you to discuss your case and negotiate a potential settlement. If you can demonstrate a clear error or provide compelling evidence, the assessor may agree to lower your assessed value at this stage.

If an agreement is not reached, your case will likely proceed to a formal hearing before an appeals board. At the hearing, you will have a set amount of time to present your case and evidence to a panel. The assessor’s office will also present its justification for the valuation before the board makes a final determination.