Why Your Property Tax Bill Might Spike This Year—and What You Can Do About It
Rohit Padmanabhan

🏠 Why Your Property Tax Bill Might Spike This Year—and What You Can Do About It

 

Understanding Reappraisals, Informal Reviews, and Appeals in a Changing Property Tax Landscape

If you’re a high-earning young professional and a homeowner—especially in urban or rapidly developing areas—your property tax bill could be headed for a major increase this year. This is especially true if you live in cities where commercial real estate values have fallen, leaving residential property owners to shoulder a larger share of the local tax burden.

Now is the time to understand your options. Whether you’re a tech professional who recently bought into a hot market, a physician with a growing portfolio of rental properties, or a business owner whose home is also your headquarters, this guide will help you take control of your property tax situation before your bill gets out of hand.

 

 

📈 Why Property Taxes Are Rising—Even If Your Home’s Value Isn’t

The Wall Street Journal recently reported that in places like Boston and San Francisco, cities are facing massive shortfalls in commercial property tax revenue due to office vacancies and declining commercial values. To make up the difference, local governments are increasingly turning to residential property owners.

In some municipalities:

  • Appraisal districts are reassessing residential property values upward, sometimes by double digits.
  • Budget shortfalls caused by fewer commercial tax dollars are being redistributed to homeowners, many of whom are caught off guard.

Even if your home hasn’t drastically appreciated, you may still receive a reassessment that shows a sharp increase in assessed value—the number used to calculate your property taxes.

 

 

🧾 Step 1: Understand Your Property Appraisal Notice

Most jurisdictions send out property value notices in the spring or early summer (typically between April and June). Here’s what to look for:

  • Appraised/Market Value: What the county says your property is worth.
  • Assessed Value: The amount on which taxes are actually calculated. This may be lower due to exemptions.
  • Taxing Authorities: Lists which local entities (school district, county, city, etc.) are collecting tax.

✅ Pro Tip: Compare your appraised value to recent sales of similar homes nearby. If your number seems inflated, you may have grounds to challenge it.

 

 

📝 Step 2: File an “Informal Review” First

Most counties allow an informal review before a formal appeal. This is your chance to avoid a hearing and correct the valuation more easily.

What you’ll need:

  • Comparable home sales (“comps”) from the past 6–12 months.
  • Photos of any defects or deferred maintenance (e.g., roof damage, outdated systems).
  • Documentation showing incorrect square footage or amenities on record.

✅ Actionable tip: You can often submit an informal review online or via mail. Deadlines vary but are often within 30–45 days of receiving your notice.

 

 

🏛️ Step 3: File a Formal Appeal If Necessary

If the informal process doesn’t work, file a formal protest or appeal. This usually involves a hearing before an appraisal review board.

You don’t need a lawyer, but you should be well-prepared with:

  • A detailed property valuation report or independent appraisal
  • Evidence that the valuation is unfair or inconsistent with nearby properties
  • Any correspondence or results from the informal review

💡 Note: Some areas allow hearings to be conducted via phone or video call. Others may let you submit written evidence in advance and skip the hearing.

 

 

🧮 Bonus Tip: Understand How Exemptions Can Save You Money

If this is your primary residence, you may qualify for a homestead exemption, which reduces your assessed value. Other exemptions may exist for:

  • Veterans or active-duty military
  • Seniors
  • Disability status
  • Energy-efficient home improvements (in some jurisdictions)

✅ Actionable step: Check your county tax assessor’s website to confirm that all eligible exemptions are being applied. If not, submit a correction.

 

 

 

📘 Case Study: From 15% Increase to a 2% Decrease

Consider Jennifer, a 38-year-old attorney who bought her first home in Austin in 2021. This spring, she received a notice that her home’s appraised value had gone up by 15%, even though comparable homes were selling for less.

She filed an informal review with three comps showing lower sales prices and a report showing her roof was nearing the end of its life. The county lowered her appraised value by $72,000, resulting in a 2% decrease in actual taxes owed.

Had she done nothing, her escrow payment would’ve jumped by nearly $400/month.

 

 

🔑 Final Thoughts: Don’t Let Your Property Tax Bill Go Unchallenged

In today’s environment—where cities are scrambling to backfill budget holes and residential properties are easy targets—it’s critical that homeowners take an active role in monitoring and managing their assessed values.

Whether you live in a booming metro or a quieter suburb, an unchecked property appraisal could mean paying thousands more than necessary over the coming years.

 

 

✅ Take Action

If you’ve recently received a property tax assessment that seems high, don’t wait. Start by checking for errors, compare recent sales, and file an informal review. If needed, escalate to a formal appeal.

Want help evaluating your property taxes in the context of your broader financial picture? Reach out today for a property tax review session as part of your holistic financial planning process.

📎 Reference

  • WSJ Real Estate: “Why Property Taxes Are Soaring in Boston and Other Big Cities,” April 2025.
    Link to article

🚫 Disclaimer

This blog is for informational purposes only and should not be considered tax or legal advice. Please consult with a licensed professional before making any financial or tax-related decisions.

 

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