Property taxes have been rising sharply. Might you be paying more than is due? Here's how to appeal.
We all think we pay too much property tax. But as many as "40.5% of properties in the U.S. may be over-assessed," according to the Realtor.com 2025 Property Tax Report.
"Over-assessed" means the taxing jurisdiction's value estimate is too high.
The National Taxpayers Union Foundation (NTUF) concurs: "Statistics vary by area, but experts estimate that between 30 and 60 percent of taxable property in the United States is over-assessed, and this leads to higher property tax bills. Middle- and lower-income taxpayers are among the most often over-assessed. Yet typically fewer than 5 percent of taxpayers challenge their assessments, even though the majority who do so win at least a partial victory when properly prepared."
How Property Taxes are Assessed
Your property taxes are based on two things: the value of the property and the rate that your state, city or county has decided to charge. So, suppose your home is worth $500,000, and your local authority has determined that 2025's tax rate is 0.54%. You'd pay $2,700 ($500,000 x 0.54% = $2,700).
Homeowners typically pay 1/12 of the yearly amount each month with their mortgage payments.
Property values are typically reassessed every year or two, although some run to three years. And most local authorities set the tax rate annually.
Your local authority probably works backward. Its assessors know the total value of homes (plus business premises) in your area, and it sets the tax rate to raise the revenue required by its budget. This can be complicated by tax breaks that may be offered in some areas, most of which are targeted at the elderly, disabled and those on low incomes.
"From 2023 to 2024, the median property in the U.S. saw its property tax bill grow by 2.8% and 73.6% of properties had tax increases year to year. The median tax burden in 2024 was $3,500, up from $3,349." Realtor.com notes that tax increases are due to home price appreciation. A full 59.5% of properties nationwide saw property value assessments rise last year.
How Property Taxes are Spent
None of us likes paying taxes. But those levied on properties cover some essential spending.
"State and local governments use property taxes to pay for schools, road repairs, police and fire departments, garbage and/or recycling collection, and other services for area residents," explains Fidelity. "You might receive a property tax bill for a specific project, called a special assessment tax. This pays for a project that benefits your area, like building and maintaining roads or sewer lines in your neighborhood. Your tax bill could list the special assessment tax separately from your regular property taxes so you can understand where the money is going."
So, we need property taxes. But that doesn't mean you should pay more than your fair share.
Too Much Property Tax? How to Appeal Your Assessment
If you think you're paying too much property tax, you can appeal. However, it may be too late for the current tax year. Many local authorities have deadlines by which appeals must be filed.
For example, CBS News reckons Cook County, Illinois, gives property owners only 30 days to appeal after receiving their new property assessment, while homeowners in Fulton County, Georgia — where Atlanta is located — have 45 days. So, be ready to act when your next assessment arrives.
CBS suggests you check that the value of your home is correctly assessed. To begin, take a look at comparable home values in your neighborhood. Is your assessed value higher than those "comps?"
If so, you might want to call in an independent professional. One such person told CBS, "Many Realtors will do this at no cost — it's a way to promote their business." A professional appraisal will likely carry more weight than your own comps.
But you may have to pay a fee. Still, it might be worth it if it saves you a significant sum.
Realtor.com reckons the median saving achieved by an appeal in Texas was $607, while in California it was $1,875.
Before you begin, download this Steps to Take in Appealing Your Assessment checklist from the NTUF website. It will help you prepare for your appeal and might stop you from paying too much property tax.
