Over the past 20 years, my property taxes have increased by 134%. Year after year, I complained about the exorbitant bills but ended up paying them dutifully. However, recent data has made me rethink everything – I may have unknowingly let a large amount of money slip through my fingers.
According to analysis from Realtor.com, by filing a property tax appeal, over 40% of properties in the United States could potentially save $100 or more. For millions of homeowners, these savings could amount to around $539 per year. However, the actual amount you could save may vary (be it higher or lower) depending on your specific area.
“In reality, only 3% to 5% of homeowners will actually file an appeal, and among those, 30% to 50% will receive some level of tax reduction,” said Pete Sepp, President of the nonpartisan, nonprofit National Taxpayers Union based in Washington. In other words, you do have a chance to save some money.
Take the case of Russell Lindley, a homeowner in Tomball, Texas, who owns 11 properties with his wife, and has filed property tax appeals for 10 of them. He mentioned that he has succeeded in more than half of his appeals.
“Why let them assess your house values without taking action to save money?” he said. “I’ve received the largest annual property tax reduction of about $3,000.”
Officially requesting a reduction in your property value – thereby lowering your tax bill – may seem daunting, but it could potentially put a substantial amount of money back in your pocket.
Even long-time real estate reporters like myself may miss out on opportunities to save money. Now, I hope to help you avoid making the same mistakes. Next, let’s analyze the pre, mid, and post stages of the appeal process to give you the best chance of reducing your property tax bill.
Before diving into the property tax appeal process, let’s take a step back and understand how that dreaded tax bill amount is actually generated.
While each state, county, and town has its own property assessment formula, one commonality exists: property tax assessments rely on a large amount of data rather than physical inspections of your home.
“They basically enter all the data into a system and let the system spit out the result,” explained Colton Pace, co-founder of Ownwell, a company that helps homeowners with property tax appeals. “Most of the time, it works effectively, but there are inevitably times when errors occur. This means statistical models often overlook the unique features, internal conditions, or highly localized market nuances of a home.”
Using this data, assessors confirm the value of your home, which is then multiplied by the local tax rate set by your city, county, or school district, resulting in your property tax bill.
“It’s not malicious,” Sepp mentioned. “It’s just that there are too many houses to assess and local governments have to find a way to efficiently complete this task.”
So, how can you build a successful appeal case? Sepp recommends that homeowners start with evidence-based preparation, focusing on two aspects: accuracy and comparability of the assessment.
“Accuracy refers to simple errors that assessors might make,” Sepp explained. “For example, your home only has two bathrooms, not three; it’s a single garage, not a double garage. Sometimes, you can point out these issues without formally filing an appeal. You can simply call them and let them know something is off.”
In your appeal, you can (and should) provide photos, repair estimates, or contractor quotes to demonstrate the actual condition of your home. Sepp noted that some issues, such as an old kitchen from the 1980s, may not have a significant impact as they are subjective. However, clear and quantifiable situations like multiple roof leaks could definitely help in the appeal outcome.
The next key step is confirming the “comparability” of the assessment results, which involves examining recent sales of similar homes in your area.
“Check the values of these homes, not just the sale prices, but also the values assessors set for similar properties in your community,” Sepp suggested. “Look at five – preferably ten – similar properties that were assessed in your community. What is the assessment level per square foot for those homes compared to yours?”
However, there are some important points to note. Some areas adopt a fractional assessment system, meaning your home is not taxed at its full market value, but rather at a certain percentage of the market value, like 90%. Due to the differences in this assessment method, it may be challenging to directly compare your home’s value with recent sale prices.
Another crucial point is that in most jurisdictions, your home’s sale price does not equate to its assessed value, and these two numbers could vary significantly.
Chang Fu experienced this lesson firsthand. While living in Seattle, he successfully applied for a property tax review in 2019, using his home’s sale price as evidence, saving $1,000 per year. However, when he moved to Austin, Texas, and attempted to appeal his property taxes in 2025 using the same method, he was denied. Now, he is going through an arbitration process and is confident in presenting a stronger case by comparing his home’s value with surrounding similar properties and current market prices.
“I have six neighbors on my block, and their home values are lower than mine. I hope to receive a fair arbitration and achieve a positive outcome so I can pay property taxes similar to my neighbors,” Chang Fu stated.
The success of your appeal largely depends on your area of residence. For example, in Indiana, if property assessments increase by over 5%, assessors bear the responsibility of proving the accuracy of their assessments. As Pace pointed out, in states where assessors have the burden of proof (like Indiana), homeowners often have a higher success rate in appealing. However, this doesn’t mean homeowners can neglect conducting any investigation.
“Even if assessors bear the burden of proof, it doesn’t mean you can say, ‘Well, I think my house is worth $1.’ You must have a basis to explain, ‘The assessor confirmed the assessment result, but here are the reasons I disagree,'” Sepp mentioned.
Pace explained that in 80% of areas, the burden of proof shifts to the homeowner or the tax appeal company assisting the homeowner, making it harder for homeowners to win. “This is a higher standard than the burden of proof for a criminal conviction. It’s not just a reasonable doubt; you have to definitively prove them wrong.”
While winning under such circumstances is not impossible, thorough investigation and preparation are paramount.
Filing a property tax appeal may sound intimidating, but Sepp stated that the actual process of appealing is not daunting.
“You won’t be summoned to a courthouse and interrogated about every detail of your house. Most property assessment appeal processes are no more difficult than traffic court. If you think you shouldn’t receive a parking ticket, you simply gather evidence to explain why and submit it to a panel that handles dozens of such cases every day. You’re not on trial; you just need to provide evidence to support why you hold a certain viewpoint.”
With the emergence of property value comparison assessments and online record-keeping services, the appeal process has become more accessible. Sepp mentioned, “Even in assessor’s offices, there are AI tools to help you with your appeal. In some jurisdictions (especially during the COVID era of appeals), hearings are often conducted online. You can also submit an appeal via mail.”
After the appeal is completed, you will receive a written decision notification along with the reasons for the decision. If you disagree with the appeal result, you can further appeal to a higher review board. The processing time for appeals varies depending on the location and complexity of the case.
You have the option to handle your property tax appeal by yourself. Many homeowners, like Chang Fu, have done it themselves. He said, “If you can handle it yourself, then do it.” However, note that you may need to pay a small appeal fee, the amount of which depends on your area and property value.
If you prefer not to handle it personally, companies like Ownwell can provide professional assistance. They only charge a fee if they successfully lower your tax bill. Lindley stated, “You would hire a doctor to fix a problem, so why not hire an expert to help you? You only pay when they save you money. To me, this is always the obvious choice.”
If your situation is more complex or your property value is high, Amy Loftsgordon, legal editor at Nolo, a legal resource website, suggests that hiring a lawyer or a reputable property tax reassessment company would be a wise choice. However, she also warns homeowners to be cautious of companies that proactively reach out and promote their reassessment services.
“These companies may send notices similar to tax bills, suggesting that you might be eligible for tax reductions, but they don’t clearly state that they are for-profit companies and that property tax appeals are something you can do on your own. Generally, reputable companies do not send such misleading advertisements or contact you proactively.”
Once you receive a property tax assessment notice, don’t delay. While the proposed assessment may take effect in the next fiscal year or later half of the current year, it doesn’t mean you have ample time to respond.
“Usually, when you receive a mail, you have 30 to 60 days to file a dispute or submit an appeal. If the appeal period is 30 days, the process might be straightforward – you simply fill out a form stating, ‘I disagree with the assessment of my property because it’s overvalued compared to other homes.’ At this stage, you might not need to submit all evidence; filing the appeal will schedule a hearing. Subsequently, you will have about two weeks to submit detailed appeal materials online or by mail.”
Filing a property tax appeal may sound cumbersome, but for homeowners, it’s a money-saving method that is often overlooked. Sepp emphasized, “Assuming that the government has done all the homework is a false assumption.”
I will also be filing my own appeal next year, so stay tuned for updates. The key takeaway? Don’t assume your bill is set in stone. Take the time to meticulously review your property assessment and file an appeal when the numbers don’t add up; this could potentially save you hundreds or even thousands of dollars every year. Your wallet will thank you.
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