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.
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.
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.
Frequently Asked Questions
What should I know about 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.
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.
What should I know about 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.
What should I know about 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.