Why Did My Property Taxes Go Up?

Why Did My Property Taxes Go Up? gives you a clear, step-by-step way to understand what drives your bill, what to verify on your notice, and what to do if the numbers look off.

Seeing your tax bill spike can be frustrating. Understanding the reasons helps you decide whether it’s justified or if you should challenge it. Here are the most common causes of a higher tax bill: 11. Rising Home Prices When market values surge, assessments usually follow. ConstructionCoverage analysis notes that “rising home prices since 2020 have pushed assessments—and in turn, property tax bills—markedly higher in many areas.”. In booming markets, your assessed value may jump significantly from one reassessment cycle to the next. For example, if your neighborhood’s average price went up 30%, your assessor may raise your value by a similar amount, thus hiking your tax. Statistics show that from 2019 to 2023 nationwide property

tax revenues climbed 27% 5 , largely driven by home price inflation. 2. Reassessment or Appraisal Some areas reassess only every few years. If your home was recently reassessed to current market value, you’ll see a jump. This can happen when you buy a home or after major improvements. Even if your house didn’t sell, a periodic reappraisal can spike your assessed value. In states without reassessment caps, your value simply resets to market level on that schedule. 3. Budget and Mill Rate Changes Your tax can rise even if your home’s assessed value stays the same. Why? Because local governments may increase budgets. School districts, cities or counties vote on budgets and associated tax levies. If they

approve a higher spending plan (for new schools, utilities, salaries, etc.), the mill rate goes up. For example, if the tax rate was $25/1,000 last year and is raised to $28/1,000 to cover a bigger budget, your tax bill increases by 12%, even at the same assessment. 4. Loss of Exemptions or Credits Did you lose a discount? Sometimes owners no longer qualify for an exemption they had. Common cases include aging out of a senior exemption program, selling a principal residence (losing homestead break), or using up a tax freeze. For instance, some Florida seniors have a cap on assessment increases; when they sell, the cap goes away and taxes rise. If a veteran exemption expired or your homestead exemption was

canceled, your taxable value may jump. 5. New Voter-Approved Measures Ballot measures (like school bonds or library levies) approved by voters add to the local tax levy. These increases are often spread across all taxpayers. So a new high school bond might add $500 to every homeowner’s bill, unrelated to their home’s value. Check if there were recent referenda or budget votes in your area. 6. Property Use Change If your property use changed (e.g., from vacant land to a developed residence or from owner-occupied to rental), your assessment could change classification and rate. 12. Errors or Omissions Occasionally, a mistake is made. Perhaps an exemption wasn’t applied, or square footage was mis-entered.

Always double-check your assessment notice. If you notice an error (wrong number of bedrooms, etc.), contact the assessor immediately. 8. Understanding the Impact Remember the formula from Article 1: Taxes owed = assessed value × rate. Any increase in either factor raises your bill. Investopedia reminds homeowners to understand both assessed value and mill levy when analyzing their tax changes. In most cases, a jump in taxes is due to real changes in value or funding, not a random error. However, if the increase seems extreme compared to similar homes, it might merit an appeal. Example: Suppose your assessed value rose by 20% (due to market gains) and your city also increased the

rate slightly for a larger budget. The combined effect could push your tax 30% higher. What You Can Do

• Verify the Numbers: Look at your assessment notice or tax bill to see exactly what changed. Often

they show last year’s values and rates side-by-side with this year’s.

• Compare Locally: Check neighbors’ assessments (many counties publish the tax roll online). Are

they seeing similar jumps? This helps gauge if it’s a systemic change or your house only.

• Appeal If Needed: If your assessment seems out of line with actual market trends, consider an

appeal. Especially if comparable houses sold for less than your new assessment, you may have a case.

• Plan for Next Time: If your area is booming, expect taxes to climb annually. Budget accordingly. If

your city is voting on a big new budget, watch the news. Ultimately, taxes rise for predictable reasons: higher home values and higher spending needs. As one analysis notes, state and local governments rely on this revenue, and property taxes have “become an . If you feel the burden is too great, increasing burden as property values outpace inflation.” 11 ProptaxHelper can help you check for exemptions or file an appeal to make sure you only pay your fair share. Inside the Property Assessment Process Before your annual tax bill arrives, your home’s assessed value is determined through a formal process. Understanding this can help demystify how your tax is computed.

What Is Assessment? A property assessment is an official estimate of your home’s value on a specific date (often Jan 1). The assessor’s office – a division of local government – is responsible for valuations. Rather than appraising one home at a time, they typically use mass appraisal techniques 53 to value thousands of properties 13 efficiently. Mass appraisal means applying statistical models and standardized methods to assess many homes at once, based on recent market data.

How Is Value Determined?

Assessors may use several approaches, often in combination:

• Sales Comparison Approach: This is common for residential properties. Assessors examine recent

sales of similar homes (same neighborhood, size, age, etc.) and adjust for differences. If comparable houses sold for $300/sqft and yours is 2,000 sqft, they might estimate your home at ~$600,000.

• Cost Approach: They calculate what it would cost to rebuild your home brand new (using current

construction costs) and subtract depreciation for age/condition. This is often used for new or unique homes. For example, a newer house that would cost $400,000 to build but is 10 years old might be assessed at $350,000 after accounting for wear.

• Income Approach: Used mainly for rental or commercial properties. They look at the income the

property generates (like rent) and apply a capitalization rate to derive value. As Investopedia notes, “When determining value, assessors typically use one of three approaches: sales comparison, cost, or income”. In practice, for most homeowners, the sales comparison approach is primary. Modern assessors also use technology – GIS data, property records, aerial imagery – to update features (bedrooms, additions, etc.) and apply mass valuation models 53. The Lien Date and Assessment Cycle Your home’s assessed value is based on its condition and the market as of the lien date (often Jan 1). After that date, any changes (like improvements you made in June) usually count for next year’s tax. Some states

reassess every year, while others do it every few years or only when ownership changes. For example, Cook County (Chicago) reassesses properties on a 3-year cycle. Understanding your state’s cycle is important, because prices can move a lot between reassessments. Long-time owners often get “stuck” on outdated values for years. Key Factors in Valuation

Assessors consider many factors in their models

• Property Characteristics: Size (square footage), lot size, number of bedrooms/bathrooms, quality of

construction, and condition. (If you added a deck or remodeled the kitchen, the assessor should account for that.)

• Location: Is your home in a high-demand area? School district quality and neighborhood trends

matter.

• Market Trends: They use recent sales in your area. If home prices surge or drop, models are

updated to reflect that (within the limits of the reassessment schedule).

• Use and Classification: Is it a single-family home, condo, farm, etc.? Assessors classify properties,

and different classes can be taxed differently. 14 For example, the CatalisGov guide notes that mass appraisal “takes into account various factors such as location, size, condition, amenities, and recent sales data”. This means if your house has a new roof, an extra bathroom, or was recently remodeled, you should report these so they’re in the assessment model. Notices and Public Record After your assessment is computed, you should receive a notice of value. This typically shows your home’s assessed value and any exemptions applied. Many assessors give owners a chance to review the roll (the full list of assessments). Some jurisdictions publish the assessment roll online. Check with your local assessor’s

office – you can often search by address to view your assessment and your neighbors’. In some places, there are public hearings (often called “Board of Review” or “Assessment Review Board”) in late spring/early summer where you can ask questions about your assessment before filing an appeal. Appeals and Adjustments If you believe the assessment is inaccurate (for example, your home was overvalued or comparable sales are lower), you have the right to appeal or protest. Typically, you must file an appeal within a deadline after the notice is mailed. Be prepared with evidence: recent sales of similar homes, an independent appraisal, photos of needed repairs, etc. An appeal doesn’t change tax rates – it only can lower your

assessed value (and thus taxes) if successful. ProptaxHelper can assist in gathering comparable sales data and filling out appeal forms. Even if your bill has already been paid, some jurisdictions allow you to file a late appeal or correction if the value was obviously off.

Next steps

• Use the Property Tax Estimator to sanity-check your bill.
• If something looks off, run a quick Appeal Savings scenario.
• Scan the Articles list for related topics like exemptions, deadlines, and escrow planning.