Don't Freak Out About Your Property Taxes
We know receiving a higher tax assessment can be concerning, but we want to assure you that there are ways to handle this situation without undue stress.
First, don't panic if you have seen an increase in your property tax assessment. Remember, state law limits annual property tax increases to 3%. This means even if your assessment has gone up, your taxes cannot be raised by more than 3% annually.
Secondly, understand the difference between the assessed value and taxable value of your property. The assessed value is an estimate of your property's worth, while taxable value is the amount of your assessment that's subject to property tax. Your taxable value may go up by around 3%, which is different from your assessed value, and you may need to budget accordingly.
Finally, remember that as an asset and investment, you want your home to increase in value. An increase in value as means you have more equity in your home, which you may be able to leverage to make other investments or pay off debt.
If you disagree with your assessed value or believe that your property's value has not been assessed correctly, you can fight the assessment. You may challenge the assessment by presenting evidence to the County Assessor's Office to correct the value. We recommend consulting with a property appraiser or tax specialist for guidance on how to challenge an assessment.
Another solution that could be helpful is to contact your mortgage servicer to remove PMI (Private Mortgage Insurance) if you have a conventional loan. This could lower your monthly payment and help offset the impact of any tax increase.
As always, if you have any real estate related questions, feel free to reach out.