How to Lower Your Property Taxes: The Complete Homeowner’s Guide (2025 Update)

If your property taxes just went up — you’re not alone. Across the U.S., homeowners are seeing higher tax bills as property values rise and local budgets grow.

The good news? You might be able to lower your property taxes — sometimes by hundreds or even thousands of dollars — if your home is over-assessed or eligible for exemptions.

This guide breaks down how property taxes actually work, what causes them to increase, and the practical steps you can take to reduce your bill.

💡 What Are Property Taxes, and How Are They Calculated?

Your property tax bill is based on two key numbers:

1. Your home’s assessed value — what your local assessor thinks your property is worth.

2. The mill rate (or tax rate) — how much your local government charges per $1,000 of assessed value.

The formula is simple:

So, if your home is assessed at $500,000 and your local mill rate is 30, your annual property tax would be:

Even a small error in the assessed value can mean big money out of your pocket.

🧾 Step 1: Review Your Property Tax Assessment

Start by finding your most recent property tax assessment notice (usually mailed annually or available online through your local assessor’s website).

Check for these red flags:

• Your assessed value seems higher than similar homes nearby

• Incorrect information (e.g., wrong square footage, extra bathrooms, finished basement that doesn’t exist)

• Recent sales of similar homes are much lower than your assessment

If any of these are true, your home may be over-assessed, and you have a strong case to appeal.

🔍 Step 2: Compare Your Home to Similar Properties

The easiest way to build your case is by looking at comparable sales (“comps”).

Find at least 3–5 homes in your area that:

• Are similar in size, age, and condition

• Have sold recently (within the last 12 months)

• Have lower assessed values or sale prices

If your home is assessed for $550,000 but similar homes recently sold for $475,000, you may be paying taxes on $75,000 more value than you should.

📅 Step 3: Check Your Local Appeal Deadline

Every county and municipality sets its own appeal period — typically 30 to 90 days after assessment notices are sent.

You can usually find this date on your assessment letter or your local assessor’s website. Missing the deadline means waiting until next year, so don’t delay.

🧠 Step 4: File a Property Tax Appeal

Once you’ve reviewed your assessment and gathered evidence, it’s time to file your appeal.

Most appeal processes include:

1. Filing an appeal form (available from your local assessor or board of review)

2. Submitting your supporting documents (recent sales, appraisals, photos, etc.)

3. Attending a hearing — either in person or virtually

You don’t always need a lawyer or agent to file — many homeowners succeed on their own with strong evidence and clear reasoning.

💸 Step 5: Explore Exemptions and Credits

Even if your assessment is accurate, you may still qualify for tax relief programs, such as:

• Homestead exemptions (for primary residences)

• Senior, veteran, or disability exemptions

• Energy-efficient or historic property credits

Check your state and local assessor’s website for all available programs — they can reduce your taxable value and lower your bill automatically.

⚖️ Step 6: Understand the Appeal Outcome

If your appeal is successful, you’ll receive a notice showing your new assessed value and revised tax amount.

Your savings depend on your location and mill rate, but homeowners typically see reductions of 5–20% — sometimes even more in over-assessed cases.

If you lose your appeal, you can often refile next year or escalate to a higher appeal board.

⚙️ Step 7: Use a Property Tax Review Tool

You don’t have to go it alone. New tools and AI-powered services (like PropAppeals) can automatically:

• Analyze your property’s assessment history

• Compare your home to local market data

• Estimate your potential savings

• Help you file an appeal in minutes

✅ Key Takeaways

• Property taxes are based on your assessed value and local tax rate

• Errors in assessments are common — review your data each year

• Compare your home to recent sales to find discrepancies

• File an appeal before the deadline if you’re over-assessed

• Look into local exemptions and credits for extra savings

• Automated tools can simplify the process and maximize your refund potential

🏁 Final Thoughts

Lowering your property taxes doesn’t have to be complicated. With a little research — or the right software — you can challenge unfair assessments, claim exemptions, and keep more of your money each year.

Your local government works for you — and you have the right to question their math.