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Property taxes are based on assessed value determined by local government. If your assessment is higher than your property’s actual market value, you may be paying more than required. Property owners can challenge assessments through an appeals process. Successful appeals reduce taxes for current and future years until the next reassessment.

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How Property Taxes Work

Local assessors determine property value for tax purposes. Assessments may occur annually, every few years, or when property sells (depending on jurisdiction).Assessed value may equal market value or a percentage of it, depending on state law.Tax rate (millage) is applied to assessed value to calculate tax owed.
Formula: Assessed value x tax rate = annual property tax
Example:
  • Market value: $400,000
  • Assessment ratio: 80%
  • Assessed value: $320,000
  • Tax rate: 2.5%
  • Annual tax: $8,000
Reducing assessed value directly reduces taxes owed.
Assessors consider:
  • Recent sales of comparable properties
  • Property size and lot size
  • Age and condition
  • Location
  • Improvements and renovations
  • Income potential (commercial properties)
Mass appraisal techniques may miss individual property characteristics.

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When to Appeal

  • Assessment increased significantly without improvements
  • Similar homes in neighborhood have lower assessments
  • Recent purchase price was below assessed value
  • Property has condition issues lowering value
  • Market values have declined since last assessment
  • Assessment doesn’t reflect property accurately (wrong square footage, bedroom count)
If you paid less than assessed value, this is strong evidence of overassessment.Recent arm’s length sale price is typically the best indicator of market value.
Assessments may lag market changes. If values in your area have dropped, assessments may not reflect current reality.Monitor local sales and compare to your assessment.
Check your property record card for errors:
  • Incorrect square footage
  • Wrong number of bedrooms or bathrooms
  • Non-existent improvements listed
  • Incorrect lot size
  • Wrong property classification
Factual errors are the easiest appeals to win.
Not every high assessment is worth appealing. Compare your assessment to similar properties and market data before investing time in an appeal.

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Preparing Your Case

Find recent sales of similar properties with lower values. “Comparable” means:
  • Similar size (within 10-20%)
  • Similar age
  • Similar location (same neighborhood ideally)
  • Similar condition
  • Sold within past 6-12 months
Aim for 3-5 strong comparables that sold for less than your assessed value.
If your property has issues affecting value:
  • Deferred maintenance
  • Needed repairs
  • Outdated systems
  • Functional obsolescence
  • Environmental issues
  • Unusual layout
Photograph problems. Get repair estimates if significant.
Review your property record for mistakes:
  • Measure your home’s actual square footage
  • Count rooms, bathrooms, garage spaces
  • Note any listed features that don’t exist
  • Verify lot size matches deed
Bring proof of correct information to appeal.
If similar neighboring properties have lower assessments, this supports your case.Assessment records are public. Compare your assessed value per square foot to neighbors.Unequal treatment is valid grounds for appeal.

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The Appeals Process

Process varies by jurisdiction but generally follows similar steps.
1

Review assessment notice

Assessment notices are typically mailed annually. Note the deadline for appeals, often 30-90 days from notice date.
2

Informal review

Many jurisdictions offer informal review before formal appeal. Meet with assessor’s office to discuss concerns.Often resolves obvious errors without formal hearing. No risk to try this step.
3

File formal appeal

If informal review fails, file formal appeal by deadline. Usually requires written application stating grounds for appeal.Filing fees are typically modest ($25 - $100).
4

Prepare evidence

Gather comparable sales data, photos, repair estimates, and any documentation supporting lower value.Organize materials clearly. Prepare written summary of your argument.
5

Attend hearing

Present case to review board. May be assessor’s office, board of equalization, or assessment appeals board.Be professional, concise, and factual. Focus on evidence, not emotions.
6

Receive decision

Board issues decision, usually within weeks to months. Assessment may be reduced, upheld, or occasionally increased.If unsuccessful, further appeals may be available to state board or courts.

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What Makes a Strong Appeal

If you bought the property recently in an arm’s length transaction for less than assessed value, this is compelling evidence.Bring settlement statement showing purchase price.
Multiple recent sales of similar properties below your assessment demonstrate market value is lower.Use properties as similar as possible. Explain any differences and how they affect value.
Errors in property records are objective and easy to prove.Bring evidence of correct information (measurements, photos, permits).
Appraisal from licensed appraiser carries significant weight.Cost ($400 - $600) may be worthwhile for high-value properties or complex situations.Appraisal should be as of assessment date, not current date.
If similar properties are assessed lower than yours, you may have grounds for equalization appeal.Show systematic difference, not just one or two properties.

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What Doesn’t Work

Inability to pay is not grounds for reduction. Appeals must be based on value, not financial hardship.Some jurisdictions offer exemptions or deferrals for seniors, disabled, or low-income owners. These are separate from appeals.
Complaints about tax rates, government spending, or fairness of the system aren’t relevant to value appeals.Focus only on whether assessed value exceeds market value.
Lower taxes could result from exemptions, different tax rates, or different assessment dates.Focus on assessed values, not tax amounts.
Assessment can increase without improvements if market values rise or previous assessment was incorrect.Argue current value, not reasons for increase.
Appeals can result in assessment increases if board determines property was undervalued. This is rare but possible. Ensure your evidence supports a lower value before appealing.

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Hiring Help

Specialists who handle appeals on your behalf. Often work on contingency (percentage of savings).Pros:
  • Experience with local process
  • Access to comparable sales data
  • Handle all paperwork and appearances
  • No upfront cost (contingency)
Cons:
  • Contingency fees (25-50% of first year savings typical)
  • May not take cases without strong likelihood of success
May be needed for complex cases or further appeals to courts.Typically charge hourly fees. Appropriate for high-value properties or unusual situations.
Provide professional opinion of value. Helpful for complex properties or when comparable sales are limited.Appraisal costs $400 - $600 for residential, more for commercial.
Many successful appeals are handled by property owners themselves.Best for:
  • Straightforward cases
  • Clear factual errors
  • Strong comparable sales evidence
  • Lower-value properties where professional fees aren’t justified

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Deadlines and Timing

Deadlines are strict and vary by jurisdiction. Typically 30-90 days from assessment notice date.Missing deadline usually means waiting until next assessment cycle.Mark deadline on calendar immediately upon receiving notice.
  • After significant market decline
  • After purchasing below assessed value
  • After discovering errors in property record
  • When comparable assessments are clearly lower
Don’t wait for “perfect” case. If overassessed, appeal now.
Successful appeal typically reduces assessment until next reassessment cycle.May be 1-year in annual assessment jurisdictions, or several years where reassessments are less frequent.One successful appeal can save thousands over multiple years.

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Commercial Property Appeals

Commercial properties may be valued using income approach (based on rental income and cap rates) rather than comparable sales.Arguments may focus on:
  • Actual income vs assumed income
  • Appropriate capitalization rate
  • Vacancy rates
  • Operating expenses
Commercial assessments are often higher, making appeal savings more significant.Professional help (consultant or attorney) is more commonly used for commercial appeals.
May involve discovery, depositions, and formal hearings similar to court proceedings.Appeals can take longer and require more documentation.

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After the Appeal

Assessment reduced. Future tax bills reflect lower value until next reassessment.May receive refund for current year if taxes already paid at higher amount.Keep documentation in case assessment increases again in future.
Assessment remains unchanged. Consider:
  • Further appeal to state board or court (if available)
  • Appealing again next year with new evidence
  • Accepting current assessment
No penalty for unsuccessful appeal beyond time invested.
Review assessment annually. Market changes may create new appeal opportunities.Property record errors may reappear after corrections. Verify accuracy each year.

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