Here’s how to fight a higher-than-expected property tax bill

Abstract

If the value of your home ballooned during the Covid pandemic, you may receive an inflated property tax assessment in the mail. Despite double-digit growth in single-family home prices, property taxes only increased by 1.8% in 2021, with an average payment of $3,785 annually, according to a report from Attom, a real estate data analysis firm. The discrepancy may reflect the lag in property tax assessments, with the schedule for new estimates varying by location, said Rick Sharga, executive vice president of market intelligence at Attom. Fewer than 5% of homeowners push back on property tax assessments, despite many having success, according to the National Taxpayers Union Foundation. Your property tax assessment letter may include an explanation of the appeals process, which varies by jurisdiction, including how long you have to respond, which may be less time than expected. "Assessing these values and administering a property tax system is just a massive undertaking," said Omar Ochoa, a McAllen, Texas-based attorney. "So mistakes are bound to happen." The local tax office may base your assessment on similar homes that recently sold in your area, without visiting the property or seeing the interior.