What Can You Do if Your Property Taxes Go Up?

1. Figure Out Why

Property tax is calculated by multiplying your home's assessed value by the mill rate, or tax rate, in your area.

Example: If your home has an assessed value of $300,000 and your local property tax rate is 2%, your property tax is $6,000.

An increase in your property taxes typically means one of three things:

• The property tax rate in your area went up.
• Your property's assessed value has increased.
• There's been an error in calculating your property taxes.

While you can't dispute the tax rate, you can notify the assessor of a mathematical error, or file an abatement request if you feel the property assessment is too high. If successful, an abatement lowers your tax bill by reducing the assessed value of your property.

Learn more: What Is a Mill Rate and How Will It Affect My Home Costs?

2. Act Fast

If you uncover an error on your property tax bill, or disagree with an increase in your home's assessed value and want to dispute it, take action immediately. Check the deadline for submitting an abatement request as soon as you receive your bill. You may have a short window of time, such as 30 days, to file paperwork.

Tip: If you've received a supplemental tax bill, showing you owe additional property taxes midyear, don't wait for the regular property tax payment deadline to raise questions. A supplemental tax bill usually has its own deadline.

3. Request Your Property Tax Card

Ask to see your tax assessor's record of information used to determine your property's assessed value: your property tax card. This information may be available online, so it's worth starting your search with the assessor's website.

What to Look for on Your Property Tax Card

Read through your tax card for any obvious errors, including:

• Your address
• The age of your home
• Square footage
• Lot size
• Building features
• Number and types of rooms
• Additions or improvements

Mistakes can inflate your property's value and qualify you for a reassessment, so check over this information carefully.

Learn more: What Is Assessed Value?

4. Research Comparable Properties

In addition to reviewing your own property tax card, build support for an appeal by researching comparable homes in your neighborhood. Look for homes that are the same property type as yours (single family versus condominium, for example), located within about a mile of your home and sold within the last 90 days. Check for a similar number of bedrooms and bathrooms, and comparable square footage.

• Pull tax cards on four or five similar properties and note the homes with lower property taxes than yours.
• Ask a local real estate agent to pull this information for you.
• Get a home appraisal for an objective opinion on your home's fair market value.
• Consider working with a property tax consultant or online service. They can research your home's value and find comparable properties to reference in your appeal.

Tip: Make sure your case is appeal-worthy. You may find that your home's market value really has increased—and your neighbor's properties (and property taxes) have followed suit. If that's the case, you may not want to invest your time in requesting an abatement that's unlikely to succeed.

Learn more: What Are Real Estate Comps?

5. File Your Appeal

If you're prepared to go forward, gather up the necessary forms and findings and prepare your appeal. Supporting information may include copies of documents showing the values of your home and comparable homes in your neighborhood, pictures showing damage that might lower the value of your home or receipts showing that any improvements you've made are minor.

Ask about next steps when you file the paperwork. The assessor may have a certain time frame for responding to requests. In some cases, someone from the assessor's office may want to visit your property in person. Though you may not be required to be present, you may want to walk through your home with the assessor, so you can point out any issues that may argue against an increase in property value.

Learn more: Home Improvements That Add the Most Value

6. Apply for Tax Relief

In addition to filing an appeal, you find you are eligible for credits and exemptions that release you from paying some or all of your property taxes. The details vary in every state and county, but you can try looking for these programs if you don't think you'll qualify for an appeal or if your appeal is denied. You can also do both: Appeal the assessed value of your home and apply for tax relief to save even more money.

Here are a few common exemptions:

• Senior citizens: Special exemptions may be available to homeowners age 65 or older.
• Veterans: Homeowners who have served in the military may be eligible for special tax credits or exemptions.
• People with disabilities: Having certain types of disabilities may qualify you for a tax reduction.
• Low-income homeowners: Homeowners whose income falls below a certain threshold may be exempted from paying part of their property tax.
• Homesteaders: If you own your home and use it as a primary residence, you may be able to exclude part of your home's value from its assessed value.

Learn more: How Do I Reduce My Property Taxes?

Frequently Asked Questions

The Bottom Line

If your property tax bill has increased and you think it shouldn't, it may be worth your time to review your tax card, check property taxes on comparable homes in your area and file a request for abatement if you think you have a case. If you're successful, you may be able to save hundreds or thousands of dollars on your property taxes. And if not, at least you'll have a better understanding of how your property tax bill works going forward.