New homeowners should do one key task for long-term tax savings

If you’ve just bought a home, now might be the perfect time to double-check your property tax assessment — it could save you money.

Property tax assessments determine how much you owe in taxes based on your home’s value. But if the information used to assess your property is wrong — like the square footage or number of bathrooms — you might be paying more than you should, experts warn.

According to Sal Cataldo, a real estate attorney in Sayville, New York, new homeowners often already have the documents needed to appeal an inaccurate assessment. These include the title report, which shows the home’s age, your home inspection, which outlines any issues, and your appraisal and mortgage documents, which can prove the actual market value and how it compares to similar homes in the area.

“You’ve gathered a lot of useful information during your home purchase — probably more than you realize,” Cataldo says.

Why Your Tax Assessment Might Be Off

Home sales often trigger a reassessment, since the property is changing hands — and the new market value is likely used. But the rules around when and how often reassessments happen vary depending on where you live.

Property taxes are rising nationwide, too. The median property tax bill in the U.S. was $3,500 in 2024, up from $3,349 in 2023, according to Realtor.

But depending on your city, the amount can be much higher. For example:

New York City had a median property tax of $9,937 in 2023
San Jose, CA was next with $9,554
San Francisco followed with $8,156

Hidden Errors Could Be Costing You

According to Pete Sepp of the National Taxpayers Union Foundation, 30% to 60% of homes in the U.S. may be over-assessed, often due to outdated or incorrect information.

Something as simple as an inflated square footage or an extra bathroom listed by mistake can push your tax bill higher than it should be.

“It pays to check,” says Sepp. Appealing your assessment could result in tax savings that last for years, especially in areas where reassessments happen infrequently or not on a fixed schedule.

The Potential Savings Are Real

Realtor.com estimates that over 40% of homeowners could save $100 or more per year by challenging their tax assessments — and the median savings is around $539 annually.

So if you’re a new homeowner, adding a quick review of your property tax assessment to your to-do list could be well worth your time. A few errors could be costing you hundreds — or even thousands — each year.