How To Reduce Property Tax Now


Property tax reduction has become a big concern for Americans worldwide because taxes are rising across the United States despite the steepest drop in home values since the Great Depression. Recently, home values have dropped almost 20%. Still, at the same time, property tax collections across the United States have gone up a little over 3%, according to the United States Bureau of Economic Analysis.

 Reduce Property tax

Our state and local governments collect more than 400 billion dollars in property taxes annually, the highest it’s ever been. One main reason is that most states prevent big tax hikes when real estate values go up and prevent big tax drops when values drop.

Delayed appraisals are also keeping taxes up while home prices are dropping. Pennsylvania has some counties that have not done major reappraisals for decades. They are not alone. Homeowners must pay taxes on peak values for years before new assessments reflect the dropping prices.


Taxes are a big expense for all homeowners—usually at least $3,000 annually. To reduce this large expense, the property owner should review and consider appealing their taxes once a year. While there is no guarantee you will win your appeal, a recent survey indicated that 70% of real estate tax appeals are successful. So, what’s holding most people back if you have a seventy percent chance of winning?

Out of sight, out of mind. Mortgage companies make most real estate tax payments. Since you are not writing that large monthly check, you might not feel the price sting directly. Here are some other common reasons people don’t try to reduce their property taxes.

1. The process seems intimidating, and they do not know how to appeal.

2. They do not think they will win their appeal. A victim of the You Can’t Fight City Hall Syndrome.

3. They think their home’s assessed value is below market value, and there is no basis for appealing.

4. They do not know that they can appeal on unequal appraisal.

5. They are busy and do not want to take the time to put in an appeal to reduce their property taxes.


The typical appeal hearing takes less than an hour. Most property tax appeals are resolved at the informal hearing, which is the first step you take in the appeal process. Consider a request for a $150,000 house where the property taxes are reduced by 5%. This would reduce the assessed value by $7,500 and the property taxes by $225, based on a 3% tax rate.


Three dozen residents in Sandy Springs, Georgia, were fighting a proposed expansion of the local school. They also filed a property tax appeal to get up to a 12% reduction in their property tax. They based their appeal on the increased school traffic and the inconvenience it caused. Claiming that the before and after school traffic created a nuisance to the neighborhood.

One woman organized an email campaign, asking neighbors interested in exploring the traffic situation to lower their property taxes. They went to the County Board of Equalization and presented their case. The board members said they were shocked that no more residents were present to present their case. The Homeowners who appealed got between a 4 and 12 percent reduction in their tax bills.


1. County assessors often use the drive-by technique when assessing residential real estate. So it would help if you looked for obvious errors in the description of your house in the official records, such as incorrect age, square footage, condition, or acreage. If you find a mistake, document it with blueprints, surveys, photographs, and inspection reports.

2. Compare the assessed value of your house with the assessments of similar homes in your neighborhood. This information is available at your local property tax assessor’s office.

3. Get a real estate agent or assessor to list all the sales in your neighborhood within the past 12 months. Identify three to six homes similar to yours located near your property.

You can get lower real estate taxes. One survey showed that only 7% of people appeal to real estate taxes. Imagine what it would be like to lower your property taxes and have hundreds, even thousands of dollars extra, to spend on you and your family. It can happen, but you have to take action. Don’t wait. You’ll stay your life away.