New homeowners should do one key task for long-term tax savings, real estate attorney says
If you just bought a house, it may be a good time to check the accuracy of your property tax assessment, experts say.
Your property tax assessment is the way officials determine the value of your property for tax purposes. Inaccuracies about your home that factor into that formula could mean that you're overpaying.
If it's inaccurate, you likely have most of the essential documents you need to appeal, as part of your recent home purchase, according to Sal Cataldo, a real estate lawyer and partner at O'Doherty & Cataldo in Sayville, New York.
The title report, for instance, is going to tell you the age of the house, Cataldo said. You might have a home inspection report on hand that details the property's flaws, as well as an appraisal and your mortgage, which show the value of the house and the comparable value in the neighborhood.
"You've gotten a wealth of information about your house, whether you realize it or not," Cataldo said.
More from Personal Finance:House Republican bill calls for bigger child tax creditCollege majors with the best and worst job prospectsHere's how to save on groceries amid food price inflation
A home sale will typically trigger a property tax reassessment because the property is changing hands, with the new market value applied to the assessment. But the specific rules of when the new value is applied and the frequency of reassessments will depend on your area.
Here's why it may be valuable to add reviewing your property tax assessment to your to-do list as a newly minted homeowner:
In addition to your mortgage payment, home insurance and maintenance costs, property taxes are another factor to consider as you assess your housing expenses.
In recent years, property taxes have climbed because of rising home values and tax rates.
The median property tax bill in the U.S. in 2024 was $3,500, up 2.8% from $3,349 in 2023, according to an April report by Realtor.
How much you pay varies widely depending on where you live, and some areas see higher bills and price hikes.
As of 2023, the median property tax for homeowners in New York City was $9,937, LendingTree found in a recent report. The city ranks first among the metropolitan areas with the highest median property taxes. Rounding out the top three are San Jose, California and San Francisco, where homeowners paid a median $9,554 and $8,156, respectively.
It's not uncommon for properties to be over-assessed, meaning you end up paying more taxes than you should be, said Pete Sepp, president of the National Taxpayers Union Foundation: "It pays to check."
Sometimes it's because details in your assessment were never corrected over the years, such as an incorrect square footage of livable space or the amount of bathrooms that are actually in your home.
NTUF estimates 30% to 60% of taxable property in the U.S. is over-assessed, based on reports from individual state tax assessors.
Success in the appeal can lead to savings for several years as the change becomes the basis for the next assessment, said Sepp. While some state or local governments reassess annually, others have less-frequent cycles with gaps of several years. Some have no set schedule at all.
Over 40% of homeowners across the U.S. could potentially save $100 or more per year by protesting their assessment value, with median savings of $539 a year, per Realtor.com estimates.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Chicago Tribune
an hour ago
- Chicago Tribune
Mike Johnson downplays Elon Musk's influence and says Republicans will pass Donald Trump's tax and budget bill
With an uncharacteristically feistiness, Speaker Mike Johnson took clear sides Sunday in President Donald Trump's breakup with mega-billionaire Elon Musk. The Republican House leader and staunch Trump ally said Musk's criticism of the GOP's massive tax and budget policy bill will not derail the measure, and he downplayed Musk's influence over the GOP-controlled Congress. 'I didn't go out to craft a piece of legislation to please the richest man in the world,' Johnson said on ABC's 'This Week.' 'What we're trying to do is help hardworking Americans who are trying to provide for their families and make ends meet,' Johnson insisted. Johnson said he has exchanged text messages with Musk since the former chief of Trump's Department of Government Efficiency came out against the GOP bill. Musk called it an 'abomination' that would add to U.S. debts and threaten economic stability. He urged voters to flood Capitol Hill with calls to vote against the measure, which is pending in the Senate after clearing the House. His criticism sparked an angry social media back-and-forth with Trump, who told reporters over the weekend that he has no desire to repair his relationship with Musk. The speaker was dismissive of Musk's threats to finance opponents — even Democrats — of Republican members who back Trump's bill. 'We've got almost no calls to the offices, any Republican member of Congress,' Johnson said. 'And I think that indicates that people are taking a wait and see attitude. Some who may be convinced by some of his arguments, but the rest understand: this is a very exciting piece of legislation.' Johnson argued that Musk still believes 'that our policies are better for human flourishing. They're better for the US economy. They're better for everything that he's involved in with his innovation and job creation and entrepreneurship.' The speaker and other Republicans, including Trump's White House budget chief, continued their push back Sunday against forecasts that their tax and budget plans will add to annual deficits and thus balloon a national debt already climbing toward $40 trillion. Johnson insisted that Musk has bad information, and the speaker disputed the forecasts of the nonpartisan Congressional Budget Office that scores budget legislation. The bill would extend the 2017 Trump tax cuts, cut spending and reduce some other levies but also leave some 10.9 million more people without health insurance and spike deficits by $2.4 trillion over the decade, according to the CBO's analysis. The speaker countered with arguments Republicans have made for decades: That lower taxes and spending cuts would spur economic growth that ensure deficits fall. Annual deficits and the overall debt actually climbed during the administrations of Ronald Reagan and George W. Bush, and during Trump's first presidency, even after sweeping tax cuts. Russell Vought, who leads the White House Office of Budget and Management, said on Fox News Sunday that CBO analysts base their models of 'artificial baselines.' Because the 2017 tax law set the lower rates to expire, CBO's cost estimates, Vought argued, presuming a return to the higher rates before that law went into effect. Vought acknowledged CBO's charge from Congress is to analyze legislation and current law as it is written. But he said the office could issue additional analyses, implying it would be friendlier to GOP goals. Asked whether the White House would ask for alternative estimates, Vought again put the burden on CBO, repeating that congressional rules allow the office to publish more analysis. Other Republicans, meanwhile, approached the Trump-Musk battle cautiously. 'As a former professional fighter, I learned a long time ago, don't get between two fighters,' said Oklahoma Sen. Markwayne Mullin on CNN's 'State of the Union.' He even compared the two billionaire businessmen to a married couple. 'President Trump is a friend of mine but I don't need to get, I can have friends that have disagreements,' Mullin said. 'My wife and I dearly love each other and every now and then, well actually quite often, sometimes she disagrees with me, but that doesn't mean that we can't stay focused on what's best for our family. Right now, there may be a disagreement but we're laser focused on what is best for the American people.'
Newsweek
2 hours ago
- Newsweek
Cory Booker Says He Won't Take Money From Elon Musk
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Senator Cory Booker, a New Jersey Democrat, said during an appearance on NBC News on Sunday that he would not accept campaign donations from billionaire Elon Musk, but added that he would "welcome" the Tesla CEO getting involved in politics "in a more substantive way." Newsweek has reached out to Booker for comment via email on Sunday. Why It Matters Musk led the cost-cutting task force known as the Department of Government Efficiency (DOGE) until the end of May. He served as a close adviser and key ally to President Donald Trump, and helped bankroll his 2024 campaign with more than $250 million in donations. On Tuesday, he turned against the administration, speaking out against the One Big Beautiful Bill spending proposal, calling it a "disgusting abomination." Musk's public rebuke marked a notable and apparent departure from the Trump administration's legislative agenda. The Trump-backed reconciliation package passed the House last month following weeks of negotiations in which House Speaker Mike Johnson, a Louisiana Republican, wrangled votes from the ultraconservative and more centrist factions of the GOP. While Trump praised the measure in its current form, Senate Republicans have made it clear they plan to make significant changes to it before it passes the upper chamber. What to Know NBC News' Meet the Press host Kristen Welker asked Booker, an opponent of Trump's spending bill, if he would accept money from Musk for a potential reelection campaign. He is up for reelection next year. Booker replied: "I will partner with anyone like I did in the last Congress," arguing that the bill is "an American issue. And I welcome Elon Musk, not to my campaign, I welcome him right now, not to sit back and just fire off tweets, to get involved right now in a more substantive way and putting pressure on Congress people and senators to not do this." Welker asked again if Booker would ever accept campaign funding from Musk, Booker said, "I would not accept money from Elon Musk for my campaign, but I would be supportive of anybody, including Elon Musk, putting resources forward right now to let more Americans know" about the bill. Following Musk posts on his social media platform X, formerly Twitter, calling the bill a "massive, outrageous, pork-filled" piece of legislation that is a "disgusting abomination," Representative Ro Khanna, a California Democrat, told Politico that the party should try to welcome Musk. "We should ultimately be trying to convince him that the Democratic Party has more of the values that he agrees with," the congressman said. On Saturday, Trump told NBC News that Musk will face "very serious consequences" if he starts to fund Democrats. He did not specify what actions he could take against Musk. When asked if he has any desire to repair the relationship between the pair, Trump simply said "No," adding that he "would assume" their relationship is over after the very public dispute. Musk posted a series of messages criticizing the bill, Trump and the Republican Party and some of its leaders. At one point, he posted a poll asking followers whether they support the creation of a new political party, dubbed "The America Party." Of the more than 5.6 million users who responded, 80 percent said yes. Senator Cory Booker, a New Jersey Democrat, is seen on May 14 in Washington, D.C. Inset: Elon Musk attends a news conference in the Oval Office of the White House on May 30 in Washington,... Senator Cory Booker, a New Jersey Democrat, is seen on May 14 in Washington, D.C. Inset: Elon Musk attends a news conference in the Oval Office of the White House on May 30 in Washington, D.C. More AP Photo/Evan Vuccifor Student Borrower Protection Center What People Are Saying Representative Thomas Massie, a Kentucky Republican, wrote on Wednesday on X: "The Big Beautiful Bill is a debt bomb ticking. It's also the biggest missed opportunity conservatives have ever had to put our country back on a track of fiscal sanity. If we defeat this bill, a better one can be offered that won't bankrupt our country." White House press secretary Karoline Leavitt told Newsweek on Thursday: "This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted. The president is focused on passing this historic piece of legislation and making our country great again." Representative Marjorie Taylor Greene, a Georgia Republican, told reporters on Tuesday: "I have to agree with [Musk] on one hand. I always love it when Americans are angry at the federal government and express it. I think that should've been happening for years now. I mean, we're $36 trillion in debt for a reason." President Donald Trump posted to Truth Social on Thursday: "I don't mind Elon turning against me, but he should have done so months ago. This is one of the Greatest Bills ever presented to Congress. It's a Record Cut in Expenses, $1.6 Trillion Dollars, and the Biggest Tax Cut ever given. If this Bill doesn't pass, there will be a 68% Tax Increase, and things far worse than that. I didn't create this mess, I'm just here to FIX IT. This puts our Country on a Path of Greatness. MAKE AMERICA GREAT AGAIN!" Senator Bernie Sanders, a Vermont independent, wrote in a X post on June 3: "Musk is right: this bill IS a 'disgusting abomination.' We shouldn't give $664 billion in tax breaks to the 1%. We shouldn't throw 13.7 million people off of Medicaid. We shouldn't cut $290 billion from programs to feed the hungry. Let's defeat this disgusting abomination." Senate Majority Leader John Thune, a South Dakota Republican, told reporters on Tuesday: "We obviously respect everything that Elon did with DOGE. On this particular issue, we have a difference of entitled to that opinion. We're going to proceed full speed ahead." What Happens Next Trump gave Senate Republicans a July 4 deadline to pass the bill and get it to his desk.
Hamilton Spectator
2 hours ago
- Hamilton Spectator
Mike Johnson downplays Musk's influence and says Republicans will pass Trump's tax and budget bill
With an uncharacteristically feistiness, Speaker Mike Johnson took clear sides Sunday in President Donald Trump's breakup with mega-billionaire Elon Musk. The Republican House leader and staunch Trump ally said Musk's criticism of the GOP's massive tax and budget policy bill will not derail the measure, and he downplayed Musk's influence over the GOP-controlled Congress. 'I didn't go out to craft a piece of legislation to please the richest man in the world,' Johnson said on ABC's 'This Week.' 'What we're trying to do is help hardworking Americans who are trying to provide for their families and make ends meet,' Johnson insisted. Johnson said he has exchanged text messages with Musk since the former chief of Trump's Department of Government Efficiency came out against the GOP bill. Musk called it an 'abomination' that would add to U.S. debts and threaten economic stability. He urged voters to flood Capitol Hill with calls to vote against the measure, which is pending in the Senate after clearing the House. His criticism sparked an angry social media back-and-forth with Trump, who told reporters over the weekend that he has no desire to repair his relationship with Musk. The speaker was dismissive of Musk's threats to finance opponents — even Democrats — of Republican members who back Trump's bill. 'We've got almost no calls to the offices, any Republican member of Congress,' Johnson said. 'And I think that indicates that people are taking a wait and see attitude. Some who may be convinced by some of his arguments, but the rest understand: this is a very exciting piece of legislation.' Johnson argued that Musk still believes 'that our policies are better for human flourishing. They're better for the US economy. They're better for everything that he's involved in with his innovation and job creation and entrepreneurship.' The speaker and other Republicans, including Trump's White House budget chief, continued their push back Sunday against forecasts that their tax and budget plans will add to annual deficits and thus balloon a national debt already climbing toward $40 trillion. Johnson insisted that Musk has bad information, and the speaker disputed the forecasts of the nonpartisan Congressional Budget Office that scores budget legislation. The bill would extend the 2017 Trump tax cuts, cut spending and reduce some other levies but also leave some 10.9 million more people without health insurance and spike deficits by $2.4 trillion over the decade , according to the CBO's analysis. The speaker countered with arguments Republicans have made for decades : That lower taxes and spending cuts would spur economic growth that ensure deficits fall. Annual deficits and the overall debt actually climbed during the administrations of Ronald Reagan and George W. Bush, and during Trump's first presidency , even after sweeping tax cuts. Russell Vought, who leads the White House Office of Budget and Management, said on Fox News Sunday that CBO analysts base their models of 'artificial baselines.' Because the 2017 tax law set the lower rates to expire, CBO's cost estimates, Vought argued, presuming a return to the higher rates before that law went into effect. Vought acknowledged CBO's charge from Congress is to analyze legislation and current law as it is written. But he said the office could issue additional analyses, implying it would be friendlier to GOP goals. Asked whether the White House would ask for alternative estimates, Vought again put the burden on CBO, repeating that congressional rules allow the office to publish more analysis. Other Republicans, meanwhile, approached the Trump-Musk battle cautiously. 'As a former professional fighter, I learned a long time ago, don't get between two fighters,' said Oklahoma Sen. Markwayne Mullin on CNN's 'State of the Union.' He even compared the two billionaire businessmen to a married couple. 'President Trump is a friend of mine but I don't need to get, I can have friends that have disagreements,' Mullin said. 'My wife and I dearly love each other and every now and then, well actually quite often, sometimes she disagrees with me, but that doesn't mean that we can't stay focused on what's best for our family. Right now, there may be a disagreement but we're laser focused on what is best for the American people.' —- Associated Press journalist Gary Fields contributed from Washington. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
