Homeowner sees assessed value jump nearly 40%, learns appeal could cut taxes by $5,000 a year

A nearly 40% jump in a home's assessed value can feel like an immediate budget crisis, especially when the owner has not renovated, expanded, or otherwise changed the property.

After one homeowner saw this massive jump, they asked the internet if appealing the assessment is worth the trouble.

Here's what to know

On Reddit's r/PersonalFinance forum, a homeowner asked what documentation to gather before filing an appeal, saying the property's "assessed value went up almost 40% this year, no renovations or changes to the property."

This original poster then added that the increase "seems tied to a broader reassessment cycle of our area." 

Commenters said the key issue is not just how big the increase looks, but also whether the assessment is actually in line with other reassessments in the area. 

One user shared a personal example, writing, "Yes, always appeal. I was reassessed this year. Average house increase was 72% but mine was a 150% increase with nothing done to my home to justify the increase. After two rounds of appeals, I got the assessment down by 250k and in line with the average town increase. As a result, my property taxes remained the same."

They concluded, "The appeals save me about 5k/year and the new value is locked in for 6 years. So, by doing a little bit of work, I saved myself 30k in property taxes."

Yet, as many commenters said, a big jump alone does not make a successful case. As one commenter put it, "'[Saying] my taxes went up too much' isn't the basis for a successful appeal."

More background

Commenters drew a distinction between assessed value and the final tax bill. Even when an assessment rises sharply, that does not automatically mean the town will collect more money overall.

One commenter offered a shortcut for thinking about townwide reassessments, explaining, "If everyone gets a 40% increase in assessment, then you can expect a 28% drop in the tax rate to follow." 

Another said that in Pennsylvania, that reflects the idea that "the tax base must remain the same," so a municipality should not simply collect more because all homes were revalued.

Because of that, several commenters said the more useful comparison is between one property's increase and the broader community's. The same user explained, "If the average was 40% you probably pay the same. If the average was 20% you pay more if the average was 70% you pay less."

Another commenter cited a local example showing how that can happen in practice, adding, "This just happened in our town, all properties increased about 30% in value. Our property taxes went down."

What can be done?

Commenters said the first step is to look for mistakes in the reassessment itself, not just react to the percentage increase. That could mean checking the square footage listed in public records and reviewing nearby comparable sales to judge whether the assessed value looks too high.

The communitywide numbers matter too. If your property's increase was close to the town average, the eventual tax effect may be smaller than it first appears after rates are adjusted. But if your home rose much more than similar properties nearby, commenters suggested that may provide a better basis for an appeal.

Because appeals are free, some commenters saw little downside in filing one. Another commenter wrote, "You have to demonstrate that the assessment is wrong in some way. Assessed value too high, square footage inaccurate, something else inaccurate."

Where can I learn more?

Property taxes and other housing-related charges can hit homeowners in very different ways. 

• In Palo Alto, California, assessed property values rose faster than the county average as appeals surged.

• In Jackson County, Missouri, homeowners who overpaid could receive tax credits despite a lawsuit.

• In one HOA dispute, a proposed special assessment would leave residents facing $30,000 bills.

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