Many homeowners are grappling with increased property taxes due to rising housing prices and local tax rates. However, the initial property tax assessment isn’t always final; appealing it could lead to significant savings over time.

According to a report by Realtor.com, the median property tax bill in the U.S. in 2024 was $3,500, a 2.8% increase from $3,349 in 2023. The amount you pay can vary considerably depending on your location, with some areas experiencing higher bills and more substantial increases.

As of 2023,homeowners in New York City faced a median property tax of $9,937,according to a report by LendingTree,ranking it first among metropolitan areas with the highest property taxes. San Jose, California, and San Francisco followed, with median property taxes of $9,554 and $8,156, respectively.

Realtor.com estimates that over 40% of homeowners in the U.S. could save $100 or more annually by contesting their property assessment, with median savings reaching $539 per year.

“You’re banking on several years of savings,” said Pete Sepp, president of the National Taxpayers Union Foundation.

While some jurisdictions mandate annual property tax reassessments, others operate on less frequent cycles, sometiems with multi-year gaps, or have no fixed schedule.Certain events, such as home sales or renovations, can also trigger a reassessment.

Here’s what experts advise you shoudl know before appealing a property tax increase.

‘You’re paying more then you should’

“You’re banking on several years of savings,” said Pete Sepp, president of the National Taxpayers Union Foundation.

A tax assessment is how local governments determine the value of your property for taxation.

While your home’s market value is a primary factor, other elements can influence the assessment, depending on local property tax assessment methods.

“It’s not a nationwide formula,” said Melissa Cohn, regional vice president of William Raveis Mortgage.

pete Sepp notes that properties are often over-assessed, leading to excessive tax payments, sometimes due to uncorrected inaccuracies in the assessment records.

For instance, your assessment might incorrectly list 2,500 square feet of living space when you only have 2,000, or it might indicate four full bathrooms when you have three full baths and one half-bath.

Pete Sepp explains, “Those kinds of things get embedded in your property assessment, and year after year, you’re paying more than you should.”

The NTUF estimates that 30% to 60% of taxable properties in the U.S. are over-assessed, based on reports from state tax assessors.