Property Tax Considerations for Remote Workers Who Relocated
The shift to remote work prompted millions of workers to relocate, often from high-cost cities to lower-cost suburbs or entirely different states. If you moved during the remote work boom, your property tax situation changed in ways you may not have anticipated. Your new home's tax rate, assessment practices, and available exemptions might be very different from what you left behind.
TL;DR
- Moving to a new state means an entirely different property tax system, rates, and exemptions
- Many remote workers moved from low-property-tax/high-income-tax states to the reverse
- File for homestead exemption at your new address immediately
- If you work from home, the home office deduction may apply (self-employed only)
- Check your new home's assessment - relocators are prime targets for over-assessment
How Relocating Affects Property Taxes
Rate Differences
Property tax rates vary enormously by state and even by county. A remote worker who moved from a New York City apartment to a house in Austin, Texas might find that property taxes are their largest new expense even though housing costs are lower overall.
| Common Relocation | Origin Property Tax Rate | Destination Property Tax Rate |
|---|---|---|
| NYC to Austin, TX | 0.9% (NYC residential) | 1.8% - 2.2% |
| San Francisco to Boise, ID | 0.7% | 0.6% - 0.8% |
| Chicago to Nashville, TN | 2.1% | 0.7% - 1.0% |
| Boston to Raleigh, NC | 1.2% | 0.8% - 1.0% |
| LA to Phoenix, AZ | 0.7% | 0.6% - 0.8% |
Assessment Practices
Your new state may assess property very differently. California's Prop 13 caps increases at 2% per year. Texas reassesses annually with no cap (except for homesteaded properties at 10%). Moving from one system to another changes your long-term tax trajectory significantly.
Essential Steps After Relocating
- File for homestead exemption at your new address. This is often the largest single savings available, and it doesn't happen automatically.
- Check your property record card. Make sure the assessor has correct information about your new home. See our error-checking guide.
- Learn your new state's assessment calendar. Know when notices go out and when appeal deadlines fall.
- Research all available exemptions. Your new state may offer programs your old state didn't.
- Set up payment. Understand whether your new location bills annually, semi-annually, or quarterly, and set up escrow or auto-pay accordingly.
Understanding this topic fully means looking at both the big picture and the specific details that apply to your situation. Every property is different, and the strategies that save the most money are the ones tailored to your particular home, location, and circumstances.
Start by gathering the basic facts about your property: its assessed value, the tax rate in your jurisdiction, and any exemptions currently applied. Then compare your situation to what is available. You may find opportunities for savings that you did not know existed.
Home Office Deduction for Remote Workers
If you're self-employed and work from home, you can deduct a proportional share of your property taxes as a business expense (not subject to the SALT cap). See our self-employed homeowner guide.
Important: If you're a W-2 employee working remotely, you cannot claim the home office deduction under current federal tax law. This applies even if your employer requires you to work from home.
Understanding this topic fully means looking at both the big picture and the specific details that apply to your situation. Every property is different, and the strategies that save the most money are the ones tailored to your particular home, location, and circumstances.
Start by gathering the basic facts about your property: its assessed value, the tax rate in your jurisdiction, and any exemptions currently applied. Then compare your situation to what is available. You may find opportunities for savings that you did not know existed.
Watch for Over-Assessment
Remote workers who bought homes during the 2020-2022 housing boom often paid above the neighborhood's typical price. If you paid a premium during a bidding war, the assessor may have set your assessment at or above your inflated purchase price. Now that the market has normalized, your assessment might exceed what comparable homes are actually selling for.
This makes you a strong candidate for a property tax appeal.
Check your assessment for free to see if your home's value has shifted since you bought it.
Understanding this topic fully means looking at both the big picture and the specific details that apply to your situation. Every property is different, and the strategies that save the most money are the ones tailored to your particular home, location, and circumstances.
Start by gathering the basic facts about your property: its assessed value, the tax rate in your jurisdiction, and any exemptions currently applied. Then compare your situation to what is available. You may find opportunities for savings that you did not know existed.
Your Next Steps
Do not let this information sit. Take action this week:
- Review your most recent assessment notice. Pull it out and check every line. Look for errors in square footage, lot size, bedroom count, and property features. Mistakes here are more common than most homeowners realize.
- Pull comparable sales data. Find 3 to 5 similar properties near you that sold recently. If they sold for less than your assessed value, you have the foundation of a strong appeal.
- Check your exemption status. Contact your county assessor's office and confirm which exemptions are currently applied to your property. Many homeowners qualify for exemptions they have never filed for.
- Set a deadline reminder. Find your appeal deadline and put it on your calendar with a 2-week advance warning. Missing the deadline costs you a full year of potential savings.
Why Most Homeowners Overpay
Studies consistently show that a large percentage of residential properties are over-assessed. The Lincoln Institute of Land Policy found that roughly 40% of assessments are off by more than 10%. That is not a rounding error. On a $350,000 home, a 10% overvaluation means you are paying taxes on $35,000 of value that does not exist.
The reason is simple: assessors use mass appraisal models to value thousands of properties at once. They cannot inspect every home individually. The models rely on averages, which means homes that are below average in condition, location, or desirability often get assessed too high. If your home has any characteristics that reduce its value compared to the average home in your area, your assessment may be inflated.
The only way to fix this is to check your assessment yourself. Compare it to actual sales of similar properties. If the numbers do not match, file an appeal. The process exists for exactly this purpose, and homeowners who use it save an average of $1,000 to $3,000 per year.
Appealing does not increase your assessment. In most jurisdictions, the review board can only lower your value or leave it unchanged. There is no downside to filing a well-prepared appeal.
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Frequently Asked Questions
How can remote workers save on property taxes?
The shift to remote work prompted millions of workers to relocate, often from high-cost cities to lower-cost suburbs or entirely different states. If you moved during the remote work boom, your property tax situation changed in ways you may need to consider.
How Relocating Affects Property Taxes?
Property tax rates vary enormously by state and even by county. A remote worker who moved from a New York City apartment to a house in Austin, Texas might find that property taxes are their largest new expense even though housing costs are lower overall.
Can self-employed remote workers deduct property taxes?
If you're self-employed and work from home, you can deduct a proportional share of your property taxes as a business expense (not subject to the SALT cap). See our self-employed homeowner guide.
Why should remote workers watch for over-assessment?
Remote workers who bought homes during the 2020-2022 housing boom often paid above the neighborhood's typical price. If you paid a premium during a bidding war, the assessor may have set your assessment at or above your inflated purchase price.