Why Did My Property Tax Bill Go Up? 6 Common Reasons

Your property tax bill can increase due to reassessment, new levies, lost exemptions, or improvements. Here are the 6 most common reasons.

PropertyTaxFight Team
4 min read
In This Article

Why Did My Property Tax Bill Go Up? 6 Common Reasons

TL;DR

Your property tax bill can increase for six main reasons: reassessment at a higher value, new voter-approved levies, loss of an exemption, improvements or additions to your property, a correction of previously unreported features, or a change in tax rates due to local government budget increases. The first step is identifying which factor caused the increase. If it is a reassessment, you can appeal. If you lost an exemption, you may be able to reapply. Not all increases are errors, but many are worth investigating.

Reason 1: Reassessment

The most common reason. Your county reassessed your property at a higher value, either as part of a scheduled county-wide reappraisal or because of a triggering event (sale, new construction, improvement).

Check your assessment notice to see if the assessed value changed from the prior year. If it jumped significantly, compare the new value to recent sales of similar homes. If comparable homes are selling for less than your new assessed value, you have grounds for an appeal.

Reason 2: New Tax Levies

Voters approved a new levy or bond measure that added to the total mill rate. Common new levies include:

  • School construction bonds
  • Fire department improvements
  • Road or infrastructure projects
  • Library funding
  • Public safety levies

These appear as new line items on your tax bill. Compare this year's rate breakdown to last year's to identify new levies.

Reason 3: Lost Exemption

Your homestead exemption or other exemption was removed. This can happen if:

  • You refinanced and the deed changed (some counties require reapplication)
  • You transferred the property to a trust without notifying the assessor
  • You failed to recertify an income-based exemption
  • The county believes you no longer live in the property

Check your bill for the exemption section. If exemptions you previously had are missing, contact the assessor's office immediately. Most can be reinstated, sometimes retroactively.

Reason 4: Home Improvements

If you pulled a building permit for renovations, an addition, a new garage, pool, or other improvement, the assessor adds the value of those improvements to your assessment. This is not an error, it is how the system works. Adding square footage is a common trigger.

Reason 5: Data Correction

The assessor discovered features they did not previously know about. Maybe aerial imagery showed a pool or outbuilding. Maybe a review of building permits revealed unpermitted work that was later added to the records. Maybe they corrected the square footage after a field inspection.

If the corrected data is accurate, the new value may be justified. If the data is still wrong, contact the assessor.

Reason 6: Tax Rate Increase

The tax rate went up because local government budgets increased. This can happen without a voter-approved levy. Many taxing authorities can increase rates by small amounts through the normal budget process.

What to Do

  1. Compare bills: Look at this year's bill side-by-side with last year's. Identify which numbers changed.
  2. Check the assessment: If the assessed value increased, verify the property details are correct.
  3. Verify exemptions: Make sure all qualifying exemptions are still applied.
  4. Compare to market: Use our free property tax analyzer to see if your new assessed value is in line with the market.
  5. Appeal if warranted: If you are over-assessed, file an appeal within the deadline.

Frequently Asked Questions

Why Did My Property Tax Bill Go Up? 6 Common Reasons?

Your property tax bill can increase for six main reasons: reassessment at a higher value, new voter-approved levies, loss of an exemption, improvements or additions to your property, a correction of previously unreported features, or a change in tax rates due to local government budget increases. The first step is identifying which factor caused the increase. If it is a reassessment, you can appeal.

What should I know about reason 1: reassessment?

The most common reason. Your county reassessed your property at a higher value, either as part of a scheduled county-wide reappraisal or because of a triggering event (sale, new construction, improvement).

What should I know about reason 2: new tax levies?

Voters approved a new levy or bond measure that added to the total mill rate. Common new levies include:

What should I know about reason 3: lost exemption?

Your homestead exemption or other exemption was removed. This can happen if:

What should I know about reason 4: home improvements?

If you pulled a building permit for renovations, an addition, a new garage, pool, or other improvement, the assessor adds the value of those improvements to your assessment. This is not an error, it is how the system works. Adding square footage is a common trigger.

What should I know about reason 5: data correction?

The assessor discovered features they did not previously know about. Maybe aerial imagery showed a pool or outbuilding. Maybe a review of building permits revealed unpermitted work that was later added to the records.

What should I know about reason 6: tax rate increase?

The tax rate went up because local government budgets increased. This can happen without a voter-approved levy. Many taxing authorities can increase rates by small amounts through the normal budget process.

Disclaimer: PropertyTaxFight is an informational tool for property tax appeal preparation. We do not provide legal, tax, or appraisal advice. Results are not guaranteed.

PropertyTaxFight Team

PropertyTaxFight provides expert guidance and tools to help you succeed. Our content is reviewed for accuracy and kept up to date.

Related Articles