If You Get Your House Appraised Will Your Taxes Go Up?

A house appraisal offers a professional estimate of a property’s market value. Many homeowners wonder if obtaining such an appraisal will cause their property taxes to increase. Understanding the distinction between a private appraisal and the government’s tax assessment process clarifies this relationship. This article explains how property values are determined for tax purposes and how private appraisals fit into that system.

How Property Taxes are Assessed

Local governments determine property taxes based on a property’s assessed value. This value, assigned for tax purposes, is often a percentage of its fair market value. The local tax assessor’s office establishes this value for all properties within its jurisdiction.

Assessors use mass appraisal techniques, evaluating groups of similar properties rather than individual ones. This process considers factors such as sales data of comparable properties, property characteristics like size and features, and general market conditions. Property assessments occur on a regular cycle, annually or every few years, depending on the locality. Homeowners receive a notice of their assessed value.

The Role of Private Appraisals

A private appraisal is a valuation performed by a licensed appraiser for a specific client and purpose, such as securing a mortgage, refinancing, or a sale. These appraisals are confidential documents and are not automatically shared with the tax assessor’s office. Therefore, getting a private appraisal usually does not directly trigger an increase in your property taxes.

A private appraisal might indirectly influence future tax assessments in limited circumstances. When a property sells, the recorded sales price becomes public information. This sales data can be utilized by tax assessors in subsequent mass appraisal cycles for comparable properties. Additionally, if major renovations requiring permits are completed, these improvements, rather than a private appraisal, could prompt a reassessment by the tax authority.

Factors Affecting Your Property Tax Bill

Your property tax bill depends on more than just the assessed value. Local taxing authorities (municipalities, school districts, and other public service providers) set “millage rates” or “tax rates.” These rates represent the tax owed per thousand dollars of a property’s assessed value.

Local government budgets and spending needs influence how these millage rates are determined each year. A higher budget requirement could lead to an increase in the tax rate, even if your property’s assessed value remains constant. Property tax exemptions also reduce the amount of taxes owed. Common exemptions include homestead exemptions for primary residences, senior citizens, veterans, or individuals with disabilities.

Significant property improvements can impact your tax bill. Additions, major renovations, or structural changes that increase living space or overall value may lead to a reassessment. Routine maintenance and minor cosmetic updates do not result in a tax increase.

Appealing Your Property Tax Assessment

Homeowners who believe their property tax assessment is inaccurate can appeal. The process begins by reviewing your property record card and assessment notice for factual errors. Gathering supporting evidence is important.

Evidence can include recent sales data of comparable properties in your neighborhood that sold for less than your assessed value. Documentation of property defects or needed repairs, along with photographs, can also support your case. Some property owners use a private appraisal to demonstrate a lower market value.

You can start with an informal review by contacting your local assessor’s office to discuss your concerns. If an agreement is not reached, a formal appeal can be filed with the local assessment review board or an equivalent body. Adhere to the specific deadlines for filing appeals, as these vary by jurisdiction. The appeal focuses on challenging the assessed value assigned by the government, not the overall tax rate.