Over 40% of Homeowners May be Overpaying Property Taxes. Here’s How to Protest It.

 

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Here’s the quiet cost of homeownership no one’s talking about: property taxes.


According to a new report from Realtor.com®, 40.5% of U.S. homes may be over assessed, with the median homeowner potentially saving $539 per year by challenging their tax bill.


The report also highlights a new tool that helps homeowners identify potential overassessment and access the data needed to file a protest.


Here’s what you need to know to educate your homeowner clients, especially in states where property taxes are rising fast.


The Hidden Cost: Over assessed Homes Across the U.S.


According to Realtor.com’s Property Tax Report:

  • 40.5% of U.S. homes are potentially over assessed
  • The median potential savings from a successful protest is $539 per year
  • That’s more than 15% of the average property tax bill

In many cases, homeowners don’t even realize they can protest their tax bill, let alone how to go about it. Realtor.com’s new feature changes that by making the process more transparent, approachable, and actionable.


Where the Savings Add Up the Most


In some states, overassessment is even more widespread; and the potential savings are bigger than average.

According to the report, here are the top five states where protesting could pay off in a big way:

  1. Texas
         51.2% of homes flagged for overassessment
    Median potential savings: $606.66
  2. South Dakota
         48.3% of homes flagged
    Median potential savings: $431.23
  3. California
         47.8% of homes flagged
    Median potential savings: $1,875.12
  4. Iowa
         47.3% of homes flagged
    Median potential savings: $368.91
  5. Illinois
         46.5% of homes flagged
    Median potential savings: $629.76

In California, outdated assessments due to Proposition 13 protections can inflate the appearance of overassessment, while in Texas and Illinois, high effective tax rates mean even small adjustments yield big returns.


Property Tax Spikes—and Drops—You Need to Know


Realtor.com’s data also shows sharp year-over-year increases in median property tax burdens in several states. Georgia tops the list with a 15.6% jump in 2024, even though home values only rose 4.8%, indicating aggressive local rate hikes.

Other fast-rising states include:


  • Texas: +7.8% tax burden, +10.0% assessed value
  • Maine: +5.9% tax burden, +0.8% assessed value
  • New Hampshire: +5.6% tax burden, 0.0% assessed value
  • Wisconsin: +5.5% tax burden, 0.0% assessed value

Meanwhile, some states saw tax relief despite increasing home values. For example:

  • Nebraska: -15.3% tax burden, +8.3% assessed value
  • Michigan: -12.9% tax burden, +12.8% assessed value
  • Washington: -0.2% tax burden, +8.2% assessed value
  • Tennessee and Kentucky: 0.0% change in tax burden

What Homeowners Can Do Now


The new tax protesting tool on Realtor.com®, available through the My Home dashboard, offers homeowners everything they need to take action:


  • Personalized Savings Estimates: Get an annual savings estimate based on county-specific data.
  • Downloadable Evidence Packets: Includes assessed value, local tax rates, and comparable properties formatted to support an appeal.
  • Easy Access to Local Comps: Homeowners can view and download comparable properties in their neighborhood and even connect with a local agent to assist.

David Masters, Sr. Director of Product at Realtor.com® explained it this way:


“Most homeowners don’t realize they can protest their property taxes, and even fewer know how to do it. We built this resource to simplify what has traditionally been a confusing and intimidating process. 

“By integrating it into the My Home dashboard, we’re giving homeowners a clear view into what they might be overpaying, equipping them with solid evidence, and making it easy to take action. Our goal is to help people feel more confident navigating the protest process, and potentially save money.”


by Sarah Lentz | May 1, 2025 | Agent Tactics, Housing Market

https://nowbam.com/over-40-of-homeowners-may-be-overpaying-property-taxes-heres-how-to-protest-it/


@ChuckBarberini - #ChuckBarberiniRealEstate - @ChuckBarberiniRealEstate

@Golden_State_Guide_Service - @Citizen.Number.One

Location: Martinez, CA 94553, USA

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