How to Reduce Your Property Taxes in 2026: State-by-State Guide

Most homeowners overpay on property taxes every year. Not because the law requires it — because they don’t know they can push back.

In Texas alone, 68% of homeowners didn’t protest their assessed value in 2025. Among those who did, 60–80% got a reduction, saving a median of $606 per year. That’s real money sitting unclaimed, year after year, by people who assumed the appraisal district got it right.

This guide covers how to cut your property tax bill in 2026: which exemptions to apply for, how to challenge your assessed value, what evidence wins appeals, and how a lower assessment ripples through your income taxes, depreciation, and long-term tax planning.

What is a property tax appeal?

A property tax appeal (also called a property tax protest in Texas) is a formal challenge to your local appraisal district’s assessed value. If your home or investment property is overvalued, you can request a reduction. Most states allow annual appeals. The appeal itself costs nothing to file — you submit comparable sales, evidence of condition, or a formal appraisal. A successful appeal lowers your tax bill for that year and often subsequent years.

Key Takeaways

• Most homeowners never protest — In Texas, 68% didn’t file in 2025, even though 60–80% of protests result in a reduction
• The median Texas savings is ~$606/year — Small individually, but worth $6,000+ over a decade if you keep protesting
• Texas deadline is May 15, 2026 — Appraisal notices arrive around April 15; you have 30 days to file
• Check exemptions before you appeal — Homestead, senior, veteran, and disability exemptions reduce your bill automatically once applied; many homeowners miss these
• A lower assessed value has income tax consequences — For rental properties, it affects depreciation basis and deductible property taxes; understand this before accepting a settlement
• Protest services and CPAs serve different roles — A protest firm files the appeal; a CPA analyzes the tax strategy around it

Start Here: Read Your Assessment Notice

Every state sends an annual notice showing your property’s assessed value. Don’t confuse it with your tax bill — the assessment notice determines what your bill will be. When yours arrives, verify these details before anything else:

• Square footage — Is the living area correct? Garages, basements, and additions are often measured wrong.
• Lot size — Is the acreage accurate?
• Bedrooms and bathrooms — Does the record match your actual home?
• Features — Are additions, pools, or outbuildings listed correctly? Have structures been removed but still appear?

Factual errors are the fastest path to a reduction. You don’t always need a formal hearing — contact your assessor’s office with documentation and they’ll often correct errors directly.

How Property Taxes Are Calculated

The basic formula:

(Assessed Value − Exemptions) × Tax Rate = Tax Owed

Exemptions reduce your assessed value before the rate is applied. For example:

Without the exemption, the same property at 1.5% would produce a $6,000 bill. One exemption, properly filed, saves $1,500 per year automatically.

Note that some states don’t tax at full market value. Georgia assesses at 40% of market value. Illinois uses 33.33% (1/3) outside Cook County. Factor in your state’s assessment ratio when comparing assessed values to sale prices.

Exemptions: Your First Line of Defense

Exemptions reduce your taxable value before any appeal. They’re often missed because they require a separate application — they’re not automatic. Common types:

Homestead exemption — Available for your primary residence. Reduces assessed value by a flat amount or percentage. Texas homeowners get $100,000 off school district taxes. Florida homeowners get up to $50,000. Apply once with your county assessor; it typically auto-renews.

Senior exemptions — Homeowners 65+ often qualify for additional reductions or an assessment freeze that prevents rising values from raising your bill. Many have income limits.

Disability exemptions — Qualifying disabilities can reduce or eliminate property taxes on your primary residence. Documentation required.

Veteran exemptions — Service-connected disability ratings often translate to specific dollar reductions. A 100% rating means a total exemption in Texas. Surviving spouses may also qualify.

Agricultural and timber exemptions — Land used for farming or timber production is often assessed on its productivity value rather than market value, resulting in dramatically lower bills.

Home improvement exemptions — Some states (Illinois, Washington) temporarily exempt the value added by qualifying renovations for a set period after the improvement.

Check every exemption your county offers. Apply before the deadline — usually January 1 or March 1 of the tax year. Missing the deadline means waiting another year.

Why Your Assessed Value Is Probably Still Too High

Even after exemptions, your assessed value may be inflated. Appraisal districts use mass-appraisal models to value thousands of properties at once. These models are efficient, but they miss property-specific details that affect real market value.

Common reasons for inflated assessments:

• Condition issues — Foundation problems, roof age, HVAC status, flood zone location — a mass appraisal model doesn’t walk through your house
• Comparable sales selection — Districts may pull comps from a broader area or more recent period than reflects your specific street or subdivision
• Land value allocation — For rental properties, how the district splits land value from improvement value affects your depreciation calculation
• New construction adjustments — Properties near active development sometimes carry inflated comps that don’t reflect your property’s actual condition

The appeal process exists because assessments aren’t perfect. State legislatures built in formal protest rights for this reason.

Evidence That Wins Appeals

Comparable sales are the most effective evidence. Pull recent sales (within the past year, ideally near the January 1 assessment date) of similar properties in your neighborhood — same square footage range, similar age, same school district. If comparable properties sold for less than your assessed value implies, you have a clear argument.

Condition documentation supplements comps. Photos of deferred maintenance, repair estimates from licensed contractors, inspection reports, or insurance documentation of damage all support a lower value. Quantify repair costs in writing.

A formal appraisal carries the most weight but costs $300–600. Worth it for higher-value properties or if the assessment is significantly off. Make sure the appraiser values as of the official assessment date (usually January 1).

Your recent purchase price is strong evidence if you bought within the last year or two in an arm’s-length transaction for less than the current assessed value. Bring the settlement statement.

Equity arguments work in some states: if neighboring properties with similar characteristics are assessed lower, you can argue your assessment is inequitable even if the absolute value might be defensible.

The appraisal district is not your adversary — they process thousands of appeals and are often willing to negotiate when you show up with clear documentation. A calm, factual presentation with three to five solid comps is more effective than an emotional argument about what you paid.

How to Appeal: The Process

The process varies by state, but the general steps are consistent:

1. Receive your appraisal notice — This triggers your appeal window. Don’t wait for your tax bill.
2. Check the deadline — Every state has a hard cutoff. Missing it means waiting another year.
3. Gather evidence — Comparable sales, photos of condition issues, a recent appraisal, or contractor estimates for repairs.
4. File your protest — Most counties now accept online filing. Some require a written form.
5. Informal hearing first — In most states, you’ll first meet (or communicate) with an appraisal district staffer. Many cases settle here.
6. Formal hearing if needed — If the informal hearing doesn’t produce a satisfactory result, you can request a formal hearing before an appraisal review board.
7. Binding arbitration or court — If the formal hearing fails, some states offer binding arbitration as a lower-cost alternative to court.

Most homeowners settle at the informal stage. The key is having good comparables.

The Income Tax Side of Property Tax Reduction

A protest service does one thing well: it argues your assessed value down. But the downstream tax consequences are a separate question, and they’re worth understanding before you file.

Rental Properties and Depreciation Basis

If you own a rental property, your assessed value directly affects your depreciation deduction. The IRS lets you depreciate the improvement value (not the land) over 27.5 years for residential rentals. When your assessment drops, the land-to-improvement split may change. It’s worth understanding how that affects your basis before you finalize a protest strategy — especially on higher-value properties.

The Schedule A Interaction

Property taxes are deductible up to $10,000 per year for individuals under the SALT cap. If you’re already at the cap, a property tax reduction saves you money directly on your bill. If you’re under the cap, you also lose part of the deduction — so the net savings is smaller than the bill reduction suggests.

Business Property

If you hold real property in an S-Corp or LLC, the property tax deduction flows through to your personal return. A lower bill reduces deductible expenses, but the net effect on total tax position depends on your income, entity structure, and state taxes.

Timing Around a Sale

If you’re planning to sell, the assessed value factors into transfer tax calculations in some states and signals to buyers about carrying costs. Understanding this before you accept a settlement offer from the appraisal district gives you more information going into the negotiation.

The bottom line: Protest services and tax planning serve different roles. If you own investment property or business real estate, understand the income tax implications before you file — and definitely before you accept a settlement.

State-by-State Guide for 2026

Deadlines and processes vary significantly by state. Missing your filing window means waiting a full year. Verify deadlines with your local assessor before filing.

Texas

Deadline: May 15, 2026 (or 30 days from notice date, whichever is later). Extension to May 31 in some circumstances.

When notices arrive: Approximately April 15.

System: All property taxes are local — Texas has no state property tax. Each county has an independent County Appraisal District (CAD). Properties are appraised at market value as of January 1 each year.

Key exemptions (apply with your county CAD):

• General Homestead — $100,000 exemption from school district taxes (2023+), plus optional local exemption up to 20% of value
• Over-65 Exemption — Additional $10,000 off school taxes; importantly, creates a school tax ceiling so your bill won’t rise above what you paid in the year you qualified
• Disabled Veteran — Ranges from $5,000 (10–29% rating) to 100% total exemption (100% rating or unemployable); surviving spouses may qualify
• Agricultural/Timber Valuation — Land assessed at productivity value, not market value; dramatically lowers bill for qualifying acreage

Process: File online with your county CAD. Informal hearing first, then the Appraisal Review Board (ARB) if needed.

Key stat: 68% of Texas homeowners didn’t protest in 2025 despite a 60–80% success rate.

Major county appraisal districts:

Official resource: Texas Comptroller Property Tax

California

Deadline: Within 60 days of the assessment notice, or by November 30 for the regular roll (September 15 in some counties — verify locally). Prop 8 decline-in-value claims may have separate windows.

System: Proposition 13 (1978) limits how values are assessed. Properties are assessed at purchase price (the “base year value”) and can increase by no more than 2% per year — not market value. Properties are reassessed at market value only when there’s a change of ownership or new construction.

Key exemptions (apply with your county assessor):

• Homeowners’ Exemption — $7,000 reduction in taxable assessed value for owner-occupied primary residences; saves ~$70/year at the 1% rate; auto-renews
• Disabled Veterans’ Exemption — Significant exemption for qualifying veterans with service-connected disabilities or their surviving spouses; income limits apply for the higher tier
• Prop 8 Decline-in-Value — If current market value drops below your Prop 13 base year value, you can request a temporary reduction; value can bounce back when market recovers
• Property Tax Postponement — Eligible seniors (62+), blind, or disabled homeowners with income below a threshold can defer taxes; deferred amount becomes a lien on the property
• Parent-to-Child / Grandparent-to-Grandchild Exclusion — Prop 19 (2020) modified transfer rules; primary residence exclusion still exists but with limitations; consult a tax advisor on complex transfers

Process: File an “Application for Changed Assessment” with your county Assessment Appeals Board (AAB) clerk. Contact the assessor informally first.

Major county assessment appeals:

Official resource: California Board of Equalization

Florida

Deadline: 25 days after the mailing of the TRIM (Truth in Millage) notice, typically mid-to-late September. Exemption applications are due March 1.

System: County Property Appraisers assess property at “just value” (market value) as of January 1 each year. The “Save Our Homes” (SOH) cap limits annual increases in assessed value on homesteaded property to 3% or the CPI change, whichever is lower.

Key exemptions (apply with your county Property Appraiser by March 1):

• Homestead Exemption — Up to $50,000: first $25,000 exempt from all taxes; second $25,000 (on value between $50K–$75K) exempt from non-school taxes
• Save Our Homes Cap — Automatically applies to homesteaded properties; can create a large gap between market value and assessed value over time
• SOH Portability — Transfer your accrued SOH benefit (up to $500,000) to a new Florida homestead within three years; must apply; prevents a tax spike when moving
• Widow/Widower — $500 additional exemption
• Disabled Veterans — Additional exemptions; 100% service-connected disability can mean full exemption; check locally
• Non-Homestead Cap — Assessed value increases on non-homestead properties (rentals, second homes, commercial) capped at 10%/year; resets on ownership change

Process: File a petition with your county Value Adjustment Board (VAB). The 25-day window from the TRIM notice is strict — watch the mailing date carefully.

Major county Property Appraisers:

Official resource: Florida Department of Revenue — Appeals

Georgia

Deadline: 45 days from the date of the Annual Notice of Assessment. Homestead exemption applications are due April 1.

System: Property is assessed at 40% of fair market value. Your tax bill is calculated against this 40% figure, not the full market value. County Boards of Tax Assessors handle valuations.

Key exemptions (apply with your county Tax Commissioner by April 1):

• Standard Homestead — State minimum reduces 40% assessed value by $2,000; many counties offer much larger local exemptions
• Age 62+ Senior Exemption — Partial or full exemption from school taxes for seniors meeting income limits; varies significantly by county
• Disabled Veterans — Qualifying veterans can receive a substantial reduction (~$119,984 off assessed value in 2025 for 100% disability; adjusted annually)
• Surviving Spouse — Total exemption on homestead for spouses of service members killed in action or first responders killed in the line of duty

Process: File a written appeal with your county Board of Tax Assessors. Choose your route on the form: County Board of Equalization (most common), Hearing Officer, or Binding Arbitration. From BOE, you can escalate to Superior Court within 30 days.

Major county boards:

Official resource: Georgia Department of Revenue — Property Tax

Illinois

Deadline: Varies by township and county — typically 30 days after assessment changes are published. Cook County has multiple filing windows throughout the year (township-specific). Check your county Board of Review website or notice for the exact date.

System: Illinois is one of the most complex property tax states. Outside Cook County, property is assessed at 33.33% of fair market value. The state then applies an equalization factor (“multiplier”) to arrive at Equalized Assessed Value (EAV). Cook County uses a classification system with different rates by property type (residential: 10%, commercial/industrial: 25%). Taxes are paid in arrears — 2026 taxes are paid in 2027.

Key exemptions (apply with your county Supervisor of Assessments or township assessor):

• General Homestead — Reduces EAV by $6,000 in most counties; $10,000 in Cook County; typically auto-renews
• Senior Citizens Homestead — Additional $5,000 EAV reduction ($8,000 in Cook) for homeowners 65+
• Senior Assessment Freeze (SCAFHE) — Freezes EAV at its current level for seniors 65+ with household income below $65,000; prevents tax increases from rising assessments; requires annual application and income proof
• Homestead Improvement — Temporarily exempts up to $25,000 EAV on qualifying home improvements for 4 years
• Disabled Veterans — EAV reductions from $2,500 (30–49% rating) up to total exemption (70%+)

Process: Start with your County Board of Review (BOR). If unsatisfied, appeal to the State Property Tax Appeal Board (PTAB) or Circuit Court.

Major county appeal boards:

Official resource: Illinois Department of Revenue — Property Taxes

New York

Deadline: NYC Class 1 (1–3 family homes): March 15. NYC Class 2–4: March 1. Outside NYC (“Grievance Day”): typically the 4th Tuesday in May, but varies by locality — verify with your city or town assessor.

System: New York has two distinct systems. Outside NYC, city and town assessors set values at a “level of assessment” (LOA) that varies by locality. In NYC, the Department of Finance assesses all property annually under a 4-class system: Class 1 (1–3 family homes, assessed at 6% of market value with annual increase cap), Class 2 (larger residential), Class 3 (utilities), Class 4 (commercial).

Key exemptions:

Outside NYC — apply with local assessor:

• STAR Program — School Tax Relief; Basic STAR for income under $500K; Enhanced STAR for seniors 65+ with qualifying income; most recipients now receive a check/credit from the NYS Tax Department rather than a direct bill reduction
• Senior Citizens Exemption — Up to 50% EAV reduction for seniors meeting income limits; local option; requires annual application (Form RP-467)
• Veterans Exemptions — Alternative Veterans, Cold War Veterans, and Eligible Funds exemptions available depending on service period and local adoption

NYC — apply with NYC Department of Finance by March 15:

• SCHE (Senior Citizen Homeowner Exemption) — Reduces assessed value for homeowners 65+ meeting income limits; requires annual renewal
• DHE (Disabled Homeowner Exemption) — Same structure as SCHE for qualifying disabilities
• Co-op/Condo Abatement — Primary residence co-op and condo owners may qualify for a tax reduction; building board typically applies

Process: Outside NYC: file Form RP-524 with your local Board of Assessment Review by Grievance Day. After the BAR decision, escalate to Small Claims Assessment Review (SCAR) for 1–3 family homes requesting less than 25% reduction, or Tax Certiorari (Article 7) for larger commercial or more complex appeals. In NYC: file Application for Correction with the NYC Tax Commission.

Major county/borough resources:

Official resource: NYC Tax Commission | NY State — Challenging Your Assessment

Washington

Deadline: File with your county Board of Equalization by July 1, or within 60 days of the mailing date on your value notice, whichever is later.

System: County Assessors appraise property at 100% of fair market value as of January 1. Properties are physically inspected at least every 6 years; values are statistically updated annually between inspections.

Key exemptions (apply with your county Assessor):

• Senior/Disabled Persons Exemption — Age 61+ or disabled and meeting household income thresholds; provides a reduction in taxable value based on income tier; check current income limits with your county
• Property Tax Deferral — For seniors and disabled persons who qualify for the exemption program but are above the exemption income threshold; taxes become a lien and must be repaid with interest on sale
• Home Improvement Exemption — Exempts the added value from qualifying improvements for up to 3 years; applies only to the improvement itself, not general maintenance
• Historic Property — Substantially rehabilitated historic properties may qualify for special valuation for up to 10 years

Process: File a petition with your county Board of Equalization. Informal meetings with the Assessor’s office available before the formal hearing. If unsatisfied with the BOE, appeal to the State Board of Tax Appeals (BTA) within 30 days.

Official resource: Washington DOR — Property Tax Appeals

New Jersey

Deadline: April 1, 2026 (standard). May 1 for municipalities undergoing revaluation or reassessment. Some counties (Burlington, Gloucester, Monmouth) have a January 15 deadline.

System: NJ has among the highest effective property tax rates in the country. Each municipality has its own tax assessor. The state’s Homestead Benefit program provides income-based rebates for primary residence owners.

Key exemptions/programs:

• Homestead Benefit Program — Income-based rebate credited against your property tax bill for primary residences; income limits apply; administered by the NJ Division of Taxation
• Senior Freeze (Property Tax Reimbursement) — Reimburses eligible seniors and disabled persons for property tax increases over a base year; income limits apply; apply through the NJ Division of Taxation
• Veterans Deduction — $250 annual deduction for qualified veterans; apply with your local tax assessor

Process: File with your county Tax Board. If unsatisfied, appeal to the NJ Tax Court.

Official resource: NJ Division of Taxation — Assessment Appeals

Pennsylvania

Deadline: August 1, 2026 for most Pennsylvania counties. Allegheny County deadline: September 2, 2026.

System: Pennsylvania’s property tax system varies more by county than most states. Each county has its own assessment ratio and appeal procedures. Assessed values may not be updated annually in some counties — ask your county board when the last reassessment occurred.

Key exemptions/programs:

• Homestead Exclusion — Reduces assessed value by a set amount for primary residences; amount varies by county
• Senior Citizen Tax Freeze — Eligible seniors can freeze their property tax bill; income limits apply; program varies by county and municipality
• Disabled Veterans — Eligible veterans with 100% service-connected disability may receive a full exemption; apply with your county

Process: File with your county Board of Assessment Appeals. Confirm the specific local form and deadline since they vary more than most states.

Official resource: PA Department of Revenue

Colorado

Deadline: June 30, 2026 (file protest with county assessor). If denied, appeal to the County Board of Equalization between July 1 and August 5.

System: Colorado reassesses every other year for most property types. Check whether 2026 is a reassessment year in your county. Assessment notices go out around June 15.

Key exemptions:

• Senior Homestead Exemption — Homeowners 65+ who have lived in their home for at least 10 years can exempt 50% of the first $200,000 of actual value (up to $5,000+ in savings depending on tax rate); apply with your county assessor by July 15
• Disabled Veterans Exemption — 100% service-connected disability rating qualifies for the same 50% exemption on the first $200,000; no age requirement; surviving spouses may also qualify

Process: File your protest directly with your county assessor. If denied, appeal to the County Board of Equalization July 1–August 5.

Official resource: Colorado Division of Local Affairs

Arizona

Deadline: April 24, 2026 for most real property appeals.

System: Arizona uses a “limited property value” (LPV) system. For owner-occupied primary residences, the LPV can increase no more than 5% per year, regardless of market value changes. This protects long-term homeowners from rapid assessment increases.

Key exemptions:

• Owner-Occupied Classification — Primary residences qualify for a lower assessment ratio (10% of LPV vs. 15–18% for other classes); reduces your taxable value automatically with proper filing
• Senior Valuation Protection — Freezes the LPV for primary residences owned by seniors 65+ meeting income limits; apply with your county assessor
• Disabled Veterans — Qualifying veterans and surviving spouses may receive a full exemption on the primary residence

Process: File with your county assessor or the State Board of Equalization. Arizona also allows appeals to the State Board of Appeals.

Official resource: Arizona Department of Revenue — Property Tax

Ohio

Deadline: March 31, 2026 for complaints against the prior year’s assessment.

System: Ohio counties reassess property every six years with triennial updates in between. Tax rates vary significantly by taxing district. Properties are assessed at 35% of market value.

Key exemptions:

• Owner Occupancy Credit (2.5% Rollback) — Primary residence owners receive a 2.5% reduction on their tax bill automatically; verify it’s applied
• Homestead Exemption — Additional reduction for seniors 65+ and disabled persons; amount indexed annually; income limits apply; apply with your county Auditor by December 31
• Disabled Veterans — 100% service-connected disability or receiving compensation at that rate qualifies for a full exemption on the primary residence

Process: File a Complaint Against the Valuation of Real Property with your county Board of Revision. If denied, appeal to the Ohio Board of Tax Appeals.

Official resource: Ohio Department of Taxation — Real Property

Michigan

Deadline: Appeal to your local Board of Review in March (exact dates vary by township or city). After March, Michigan Tax Tribunal residential deadline is May 31; commercial deadline is July 31.

System: Michigan’s Proposal A (1994) caps annual assessment increases at 5% or the rate of inflation, whichever is lower, until a property is sold. Upon sale, the assessed value resets to 50% of market value (assessed value is technically capped at 50% of true cash value by the Michigan Constitution).

Key exemptions:

• Principal Residence Exemption (PRE) — Owner-occupied primary residences are exempt from the 18-mill school operating tax; file Form 2368 with your local assessor by June 1
• Poverty Exemption — Homeowners meeting income guidelines may apply for a full or partial exemption; apply with your local Board of Review in March
• Disabled Veterans — 100% service-connected disability may qualify for a full exemption on the primary residence; surviving spouses may also qualify
• Senior/Disability Programs — Local municipalities may offer additional deferrals or reductions; check with your township or city assessor

Process: Start with your local Board of Review in March. For higher-value properties or if the Board doesn’t provide relief, file with the Michigan Tax Tribunal.

Official resource: Michigan Department of Treasury — Assessment Appeals

Property Tax Appeal Services: How They Compare

Several national and regional services specialize in property tax appeals. Here’s how the main options differ by coverage, fee structure, and service model.

What to Consider When Choosing

Coverage match: Make sure the service covers the state and county where your property sits. Some services that advertise broad coverage contract out local representation — ask whether an in-house agent or a local partner attends your hearing.

Fee vs. savings math: A 30% contingency on a $1,500 reduction is $450. A $49 DIY kit is cheaper, but you’re doing the research and attending the hearing yourself. For higher-value properties or investment portfolios, full-service often pays for itself.

What’s not included: No protest service covers the income tax implications of a lower assessment. For rental properties, S-Corps, or any property tied to a business, the assessed value affects your depreciation, your Schedule A deduction, and potentially your entity tax position. That’s a different question entirely.

If you own investment property in multiple states: Consider the combined effect on your federal and state returns before engaging separate protest services in each state. A piecemeal, state-by-state approach can miss the full picture.

When to Hire a Property Tax Consultant

A property tax consultant (sometimes called a tax agent) makes sense when:

• Your property is high-value and the potential savings justify the contingency fee
• You don’t have time to pull comps and attend a hearing
• You own multiple properties in the same county
• You’ve been denied at the informal level and need help preparing for the formal hearing
• Your property is commercial or has complex valuation (income approach, cost approach)

Most protest services work on contingency: they take a percentage (typically 25–40%) of the first-year savings only if they win. For a $2,000 reduction in your annual bill, that’s a $500–800 fee — and you still pocket $1,200 or more.

If you own investment property, understand the tax implications of the new assessed value before engaging a protest service. The current land-to-improvement split and any planned changes in use or sale affect how a reduction plays out on your return.

How SDO CPA Can Help

Reducing your property tax bill is one step. Understanding how that reduction affects your Schedule A, your rental property depreciation, your S-Corp distributions, or your capital gains planning is a different question.

SDO CPA works with homeowners, landlords, and small business owners in Texas, California, Florida, Georgia, Illinois, New York, Washington, New Jersey, Pennsylvania, Colorado, Arizona, Ohio, and Michigan to connect property tax strategy to the full tax picture. We don’t file your protest — but we can tell you whether it’s worth filing, how to structure the appeal for maximum tax benefit, and what downstream planning to consider once you have a new assessed value.

Get a consultation to talk through your situation.

Frequently Asked Questions

How are property taxes calculated? Property taxes use this formula: (Assessed Value − Exemptions) × Tax Rate = Tax Owed. The assessed value may equal market value (Texas, Florida, Washington) or a percentage of it (40% in Georgia, 33.33% in Illinois outside Cook County). Exemptions reduce the taxable value before the rate is applied.

How often can I appeal my property tax assessment? In most states, you can appeal annually. Texas allows a protest every year during the spring protest season. California allows a Prop 8 decline-in-value review whenever the market value drops below your Prop 13 base year value.

How often are properties reassessed? It varies. Texas, Florida, Washington, and Georgia reassess annually. California reassesses only on ownership change or new construction (with 2%/year cap otherwise). Illinois uses a 4-year cycle (Cook County: 3 years). Colorado reassesses every other year.

What’s the difference between market value and assessed value? Market value is what your property would likely sell for. Assessed value is what the government uses to calculate taxes. Depending on state law, assessed value may equal market value, be a fixed percentage of it, or be capped based on acquisition price. Always check which figure your state uses before comparing your assessment to sale prices.

What’s the best evidence for a property tax appeal? Recent sales of comparable properties (same neighborhood, similar size, age, and condition) near the official January 1 assessment date. Supplement with condition photos, contractor repair estimates, or a professional appraisal if the overvaluation is large. For investment properties, income and expense data can also support the case.

Does a successful appeal affect my home’s sale price? A lower assessed value signals to buyers that property taxes will be lower, which is a selling point. It doesn’t cap what you can sell for.

What if I miss the deadline? You’ll generally need to wait until the next assessment cycle. Some states allow a supplemental appeal if the property was incorrectly described (wrong square footage, wrong number of bedrooms), but standard value appeals have hard cutoffs.

Does making home improvements increase my property taxes? Generally, yes — significant improvements that raise market value (adding a room, finishing a basement, installing a pool) will eventually be reflected in your assessment, often triggered by a building permit. Some states (Illinois, Washington) offer temporary exemptions on the added value for a set period.

Do I need a lawyer? Not usually for informal hearings or formal ARB/BOE hearings. Attorneys become relevant if you’re taking a case to district or circuit court, or filing a Tax Certiorari proceeding (New York).

How does a property tax reduction affect my mortgage escrow? Your lender collects property taxes through escrow. A successful appeal will reduce your escrow payment at the next annual adjustment, typically resulting in a refund or lower monthly payment going forward.

Last updated: March 2026. State deadlines and procedures change — verify current deadlines with your county assessor or appraisal district before filing.

For state-specific tax planning, see our Tax Planning Hub and S-Corp Election Guide.