Why Did My Property Taxes Go Up? 4 Reasons Why & How to Save Money

Here’s what you need to know about your property taxes increasing:

• County appraisal districts are not infallible; there may be errors in their appraisal methods that could cost you hundreds or even thousands of dollars.
• As local tax rates increase to meet larger infrastructure and community needs, that will have an impact on your property tax bill.
• If your property tax exemption is removed, either by error or through loss of eligibility, this will have a significant effect on your bill.
• Any improvements or additions that add property value can lead to an increase in taxes owed.
• The property tax experts at Gill, Denson & Company are ready to analyze your situation and assist with your property tax protest.

Faulty Appraisal Methods

Most Central Appraisal Districts (CADs) reassess property values every year, and as home values around you go up, yours could go up, too. CADs typically use mass appraisal methods, which can lead to errors and overestimations for many homeowners. As AI is increasingly used in appraisals, these errors are getting worse. Now, there’s not just the possibility of human error, but also machine error.

Local Tax Rate Increases

Local tax rates have a significant impact on your property tax bill, and some major metro areas have seen increases in recent years. Because Texas has no state income tax, more funding for local infrastructure and services must come from local property taxes. For example, Travis County faced a potential increase to help fund flood recovery. That would be an average of an additional $200 on a homeowner’s property tax bill.

Loss of Exemption Status

Texas CADs are now required to verify homeowners’ exemption status every five years. They could review your property at any time during that period. If they find you are ineligible, or if you don’t respond by the deadline, your exemption will be removed. Here’s what to do if you receive a Homestead Exemption Audit Letter. You could also have had a recent change that made you ineligible, such as a change in your primary address or an update to your title or deed. 

Improvements to Your Home

If you made any improvements or renovations to your home in the last year, this could explain the increase in your tax bill. Anything that adds property value could inevitably lead to an increase in the taxes owed. Whether the improvements are completed or not, they will be taxed as of their January 1 value. The taxable amount depends on several factors, and it is possible to protest it with the county. Here’s how to manage your new construction property taxes.

How to Lower Your Property Taxes

If your property taxes have increased, there are steps you can take to help alleviate them. You may be able to do one or all of the following to see significant savings:

• Review your Notice of Appraised Value and correct any errors
• Apply for all eligible exemptions (homestead, 65 and older or disabled, veterans, etc.)
• Record tax-exempt improvements (energy-efficient, accessibility)
• Protest your property taxes with Gill, Denson & Company

We recommend protesting every year to ensure your tax liability is as low as possible. Regardless of whether your taxes increase or decrease, there may be other factors allowing you to claim a further reduction. Take a look at this chart to see how property values and tax savings from a successful protest can change year after year.

The next time you catch yourself asking, “Why did my property taxes go up?” contact the experts at Gill, Denson & Company. We’ll analyze your case and exhaust all available methods to achieve the largest possible reduction, maximizing your tax savings. Get started with us now!