Understanding Your Property Tax Assessment

Learn how property taxes are calculated as part of your PITI, and explore your options for potentially lowering your bill through assessment appeals.

The "T" in PITI: Property Taxes Explained

Your monthly mortgage payment often includes an escrow amount for property taxes, which fund local services like schools, roads, and emergency responders.

How Taxes Impact Your Payment

While your principal and interest might be fixed, your total PITI payment can change, primarily due to fluctuations in property taxes and homeowners insurance.

Property taxes are calculated based on two main factors:

  • Assessed Value: The value assigned to your property by the local assessor's office. This is the value you may be able to appeal.
  • Tax Rate: The rate set by local government entities (county, city, school district). This rate is generally not appealable by individual homeowners.
  • Escrow Account: Lenders often collect estimated property taxes monthly (as part of PITI) into an escrow account and pay the bill on your behalf.
  • Payment Adjustments: If your taxes increase (due to reassessment or rate changes), your lender will adjust your monthly escrow payment, leading to a higher total PITI payment, even with a fixed-rate mortgage.

Understanding your assessment is key, as an inaccurate or unfairly high assessment directly leads to higher tax bills.

Learn About the Appeal Process

Gain Clarity on Your Tax Assessment

Our service empowers you with the data and insights needed to determine if your property tax assessment is fair and potentially appealable.

Assessment Review

We analyze your current assessed value against historical trends and local benchmarks.

Comparable Properties

Identify similar properties ("comps") in your area with lower assessed values to support your case.

Appeal Support Data

Receive organized data and market insights crucial for building a strong appeal argument.

Savings Estimation

Understand the potential annual tax savings if your appeal for a lower assessment is successful.

Steps to Review Your Assessment & Appeal

Our streamlined process makes understanding and potentially appealing your property taxes straightforward.

1

Upload Document

Securely upload your latest property tax bill or assessment notice (PDF, JPG, PNG).

2

Receive Analysis

Get your detailed report comparing your assessment to market data and comparable properties.

3

Review Findings

Understand the analysis, potential savings, and the strength of a potential appeal case.

4

File Your Appeal

Use the provided data and resources to confidently file your assessment appeal with your local county.

Know Your Rights: Property Tax Appeals

Demystifying the property tax assessment and appeal process.

Can I actually appeal my property taxes?

Yes! Most jurisdictions provide homeowners the right to appeal their property's assessed value if they believe it's inaccurate or unfair compared to similar properties.

What are the most common grounds for a successful appeal?

Common grounds include: unequal assessment (your home is valued higher than comparable properties), incorrect property data (wrong square footage, # of rooms), or market value decline (if the market value is less than the assessed value).

How often can I appeal?

This varies by location, but typically you can appeal annually during a specific window after receiving your assessment notice. Missing this window usually means waiting until the next year.

Is the appeal process difficult?

It requires gathering evidence (like comparable sales data) and following specific procedures set by your county. Our service aims to simplify this by providing the necessary data and insights.

Will appealing cause my taxes to go up?

No. An appeal is a request to *lower* your assessed value. The assessment board cannot raise your value as a result of your appeal, though they can keep it the same if they don't agree with your evidence.

Navigating Property Taxes in California

California's property tax system is unique, primarily due to Proposition 13. The chart illustrates a key concept:

  • Assessed Value (Prop 13): Generally based on purchase price plus a maximum 2% annual increase (unless reassessed). Shown in blue on the chart.
  • Market Value: Fluctuates with the real estate market. Shown in green on the chart.
  • Appeal Opportunity: When the market value (green line) drops significantly below the assessed value (blue line), you may have grounds to appeal for a temporary reduction based on market conditions (see highlighted area on chart).
  • Other Factors: Reassessments also occur upon change of ownership or new construction (not shown in chart).
  • Deadlines: County-specific appeal deadlines (usually July-Nov) are critical.

Understanding this relationship helps identify potential appeal opportunities.

Hypothetical example illustrating market value vs. assessed value trends.

See What Others Have Saved

Ready to See if Your Assessment is Fair?

Upload your property tax bill or assessment notice for a personalized analysis and discover your options.

Get Your Property Tax Analysis