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Here’s the quiet cost of homeownership no one’s talking about: property taxes.
According to a new report from Realtor.com®, 40.5% of U.S. homes may be over assessed, with the median homeowner potentially saving $539 per year by challenging their tax bill.
The report also highlights a new tool that helps homeowners identify potential overassessment and access the data needed to file a protest.
Here’s what you need to know to educate your homeowner clients, especially in states where property taxes are rising fast.
The Hidden Cost: Overassessed Homes Across the U.S.
According to Realtor.com’s Property Tax Report:
- 40.5% of U.S. homes are potentially overassessed
- The median potential savings from a successful protest is $539 per year
- That’s more than 15% of the average property tax bill
In many cases, homeowners don’t even realize they can protest their tax bill, let alone how to go about it. Realtor.com’s new feature changes that by making the process more transparent, approachable, and actionable.
Where the Savings Add Up the Most
In some states, overassessment is even more widespread; and the potential savings are bigger than average.
According to the report, here are the top five states where protesting could pay off in a big way:
Texas
51.2% of homes flagged for overassessment
Median potential savings: $606.66
South Dakota
48.3% of homes flagged
Median potential savings: $431.23
California
47.8% of homes flagged
Median potential savings: $1,875.12
Iowa
47.3% of homes flagged
Median potential savings: $368.91
Illinois
46.5% of homes flagged
Median potential savings: $629.76
In California, outdated assessments due to Proposition 13 protections can inflate the appearance of overassessment, while in Texas and Illinois, high effective tax rates mean even small adjustments yield big returns.
In California, outdated assessments due to Proposition 13 protections can inflate the appearance of overassessment, while in Texas and Illinois, high effective tax rates mean even small adjustments yield big returns.
Property Tax Spikes—and Drops—You Need to Know
Realtor.com’s data also shows sharp year-over-year increases in median property tax burdens in several states. Georgia tops the list with a 15.6% jump in 2024, even though home values only rose 4.8%, indicating aggressive local rate hikes.
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