Are You Overpaying on Property Taxes?

Do you know how much you paid in property taxes last year? For many homeowners, property taxes are bundled into their monthly mortgage payment, making them easy to overlook — especially when the cost goes up.

But here’s what many people don’t realize: Property tax bills aren’t fixed; they’re based on an estimate that’s not always accurate. In fact, experts estimate that 30% to 60% of taxable property in the U.S. is over-assessed.[1] If your tax assessment is off, you could be paying more than you should.

The Impact of Rising Property Taxes

Property taxes are taking up a growing share of homeowners’ monthly housing costs. Since 2019, the average property tax payment has increased by about 31%.[2] In 2025 alone, the average homeowner paid $4,427 annually, up 3% from the year before.[3]

And homeowners are feeling the impact. According to a recent survey:[4]

But most people aren’t taking action:[4]

What Homeowners Can Do

1. Look up your home’s assessed value.

Start by confirming your assessed value, either on your most recent tax bill or online via your county assessor’s website. Review it with a critical eye, and if anything seems off, continue with the next steps.

Assessed value is not the same as market value. 

Assessed value is set by your local tax assessor for the purpose of calculating property taxes. It’s typically based on factors like lot size, square footage, location, and the condition of the home and is updated on a schedule that varies by county.

Market value is what your home would likely sell for based on current market conditions, including buyer demand, interest rates, housing supply, and comparable sales. An appraiser may estimate market value for lending purposes, but ultimately, it reflects what a buyer would be willing to pay.

Because of this, assessed value is often lower than market value — but not always. If you’ve recently purchased your home, the assessor may use that sale price as a benchmark when updating your property’s assessed (taxable) value, depending on local rules.

2. Check for errors.

Take a closer look at your property record: Are the square footage, lot size, and other physical characteristics accurate? Small mistakes can inflate your bill.

If you find errors, you may not need to file a full appeal. Contact the assessor’s office first to resolve the issue informally — but don’t stop there. Even if the property data is accurate, the valuation can still be off, which is why it’s worth continuing to the next step.

3. Evaluate comparable sales (“comps”).

Research 3-5 nearby homes (within about a mile) that are similar in size and condition and have sold within the last six months. You can find this info on public real estate sites like Zillow or Redfin; some real estate agents may even offer to help with this for free.

The goal with this step is to compare those sale prices with your home’s estimated market value, not your home’s assessed value. Here’s how that works:

In some places, homes are assessed at 100% of their market value, while in others, they’re assessed at a percentage of what they’re worth. For example, if your home’s assessed value is $250,000 and your area typically assesses at 80% of market value, your home’s estimated market value may be closer to $312,500.

When reviewing comps, compare that estimated market value ($312,500 in this example) to recent sale prices. This gives you a more accurate sense of whether your home may be over-assessed.

4. Consider filing an appeal.

After reviewing the property data and local comps, it may be worth filing an appeal if:

a. Your assessed value appears high relative to comparable sales

b. You found errors that couldn’t be easily corrected

c. Something just doesn’t add up

In many cases, the appeals process is simpler than people expect. Start by visiting your county assessor’s website, where you can usually find instructions and submit a request online. Be prepared to include basic supporting information, such as comps or details about your home that could lower its assessed value — like needed repairs, outdated interiors, or features that make it less comparable to higher-priced homes.

Pro tip: If you’d rather not handle the appeal yourself, or if you have a more complex situation, you can search for a local property tax appeal service or ask a trusted real estate agent for a recommendation. These professionals can manage the appeal for you, often charging only if they reduce your tax bill.

5. Know the timeline.

Appeals are time-sensitive, so don’t wait. In most areas, you have a limited window — often 30-60 days from when your assessment notice is issued — to file an appeal. If you miss that deadline, you may have to wait until next year to challenge your assessed value.

Is Appealing Worth It?

Appeals succeed more often than many people assume. According to the National Taxpayers Union, 30% to 50% of homeowners who submit an appeal receive some form of reduction.[5] On a median property, that could save over $539 per year[6], and those savings can add up over time. If there’s a chance your home is over-assessed, submitting an appeal could be well worth the effort — and it’s often easier to get started than you might think.

---

This content is for informational purposes only and is not intended as tax advice. Consult a tax professional for more information.

Sources:

[1] National Taxpayers Union Foundation (NTUF), “Are You Paying Too Much in Taxes?”

[2] ICE Mortgage Monitor, March 2026.

[3] ATTOM, “Average Single-Family Home Property Tax Bill Rose 3 Percent in 2025,” April 9, 2026.

[4] Ownwell, “64% of U.S. Homeowners Are Shocked by Their Property Tax Bill, but 3 in 4 Have Never Appealed,” April 20, 2026.

[5] National Taxpayers Union, as reported by Bankrate, “Your property tax bill may be higher than it needs to be. Here’s what to do about it,” October 31, 2025.

[6] Realtor.com, “Death and Taxes, Only One Can Be Protested,” April 29, 2025.