The Hidden Mistake Costing Homeowners Hundreds a Year

If you’ve noticed your property tax bill creeping higher year after year, you’re not alone. Rising home values and local tax rates have driven many homeowners’ bills upward. In fact, the median property tax bill in the U.S. reached $3,500 in 2024, up 2.8% from the previous year, according to Realtor.com.

But here’s the good news: your property tax assessment isn’t always set in stone. In many cases, filing an appeal could reduce your bill—not just for this year, but for years to come.

Why It’s Worth Taking a Closer Look

A recent Realtor.com report estimates that over 40% of homeowners could save $100 or more per year by successfully appealing their property tax assessment, with median savings around $539 annually. That’s not pocket change, especially considering how assessments work.

Some states reassess property values annually, while others do so every few years—or only when triggered by specific events like a sale or renovation. With so many variables, it’s not uncommon for errors or outdated information to creep into your assessment.

In fact, the National Taxpayers Union Foundation estimates that 30% to 60% of taxable property in the U.S. is over-assessed.

The Appeal Process: What You Need to Know

Appealing your property tax assessment isn’t overly complicated, and success can lead to real savings. Here’s how to get started:

Verify the Details in Your Assessment

Start by reviewing your current assessment. You should receive this by mail or be able to access it online through your local assessor’s office.

Check for errors in key areas:

Square footage
Number of bathrooms
Lot size
Condition and age of your home’s features (like the roof)

If you spot inaccuracies, gather documentation—home inspections, contractor invoices, renovation receipts—as evidence.

Compare Your Property to Similar Homes

Property tax records are public, so you can look up what neighbors with comparable homes are paying. If your bill is significantly higher for a similar property, that could be a strong case for appeal.

Also check if neighboring homes are receiving tax exemptions that you might qualify for as well.

Explore Potential Exemptions

You may be eligible for tax exemptions that can reduce or eliminate part of your tax burden. Common exemptions include:

Seniors
Veterans or active-duty military
People with disabilities
Low-income households

Each locality sets its own rules, so check with your local assessor’s office or website for a list of available exemptions and application instructions.

Know Your Filing Deadline

Appeal deadlines vary by jurisdiction—and they often sneak by in small print. Mark your calendar and make sure you submit any necessary paperwork well before the cutoff, which could be as short as 30 to 45 days from when the notice is issued.

Consider Professional Help

If the process feels overwhelming—or if you have a complex case—consider reaching out to a real estate agent or licensed appraiser familiar with your area. They can help you compare local home values and support your case. Just be sure to understand their fees before hiring anyone.

A Small Investment of Time, A Big Potential Payoff

Appealing your property tax assessment might not be the most thrilling item on your to-do list, but it’s a simple, often overlooked step that could lead to meaningful long-term savings.

If you’d like help reviewing your property tax assessment or want to understand how property taxes fit into your broader financial picture, we’re here to guide you.

At Hanover, we believe clarity and confidence are the foundation of every smart financial decision.

Let’s make sure your property tax bill reflects reality, not outdated numbers or overlooked errors.