Property Tax Appeal Savings Estimator

How to do it

1. 1
   Enter the assessed and market values

   Use your notice for the assessed value and comparable sales for the market value.

2. 2
   Enter the ratio and tax rate

   Use 100 percent if your county assesses at full value, and your effective tax rate.

3. 3
   Add the costs

   Enter the filing fee and any appraiser or representative cost.

4. 4
   Set the years and chance of success

   Enter how many years the lower value will last and your chance of winning.

5. 5
   Read the result

   See the yearly saving, the net benefit, the break-even point and the expected value.

About this tool

If your county assessed your home for more than it is worth, you can appeal and, if you win, pay less tax every year until the next reassessment. This calculator compares the assessed value with a market value you estimate from recent sales, works out the over-assessment, the yearly saving at your tax rate, the costs of appealing, the break-even point and the expected value when the chance of winning is less than certain. It helps you decide whether an appeal is worth your time.

Who this is for Homeowners who just received an assessment notice that looks high, landlords with several properties and people who are thinking of paying for an appeal service that charges a share of the savings.

What you need The assessed value on your notice, an estimate of market value from comparable recent sales in your neighborhood, the assessment ratio of your county (100 percent if the assessor values at full market value, lower where only a fraction is assessed) and your effective tax rate, which is the tax bill divided by the assessed value. Fees for filing and for an appraiser or a representative go in the cost boxes.

How the estimate is worked out Target value is market value times the assessment ratio. Over-assessment is the assessed value minus the target. The yearly saving is that difference times the tax rate. Over the number of years the new value is expected to hold, the saving minus the costs is the net benefit. Multiplying the gain by your chance of success gives an expected value, which is a better guide when you are unsure.

When an appeal is likely to be worth it Many boards of review give little weight to small differences. The tool flags cases where the over-assessment is under 5 percent, which is the point at which the saving often disappears into the costs. The stronger your comparable sales, and the more evidence of condition problems you have, the higher the chance of winning.

Worked example A home is assessed at $420,000 and comparable sales suggest $375,000, at a 100 percent ratio. The over-assessment is $45,000, 12 percent. At a 1.35 percent tax rate the saving is $607.50 a year, about $1,822 over three years. With a $75 filing fee the net benefit is $1,747, and with a 60 percent chance of success the expected value is about $1,018.

Tips Check the deadline on your notice, since appeal windows are short. Ask your assessor for the property record card and look for errors in square footage or bedrooms. This tool does not know your local rules, so confirm them with your county.

Worked example

A home assessed at $420,000 with a market value of $375,000 and a 1.35 percent tax rate saves $607.50 a year if the appeal wins, a net benefit of $1,747 over three years after a $75 fee.