Are you paying too much property tax?

• Over 40% of U.S. homes may be overassessed, potentially costing homeowners hundreds annually.

• Realtor.com launches first major platform tool to help homeowners challenge inflated property tax bills.

• Homeowners in Texas, California, and Illinois stand to gain the most from protesting their assessments.

Among the often-overlooked costs of owning a home is property tax, levied by local jurisdictions. The tax is based on the assessed value of the property, and that’s where errors can be costly.

Real estate platform Realtor.com has released its Property Tax Report, showing that approximately 40.5% of residential properties across the U.S. appear to be overassessed, meaning that owners could be eligible for substantial tax relief by formally protesting their property valuations.

To be of assistance, Realtor.com said it has launched an industry-first resource to simplify the property tax protest process and empower homeowners to act.

A new homeowner’s tool

The new tax protesting feature, now live on Realtor.com’s “My Home” dashboard, gives users a personalized estimate of their potential property tax savings. It also provides homeowners with downloadable evidence—such as their current assessment, local tax rate, and comparable home values—to help substantiate a formal appeal.

"Most homeowners don't realize they can protest their property taxes, and even fewer know how to do it," David Masters, Sr.. director of Product at Realtor.com, said in a press release. "We built this resource to simplify what has traditionally been a confusing and intimidating process."

With the median U.S. property tax bill rising to $3,500 in 2024—a 2.8% increase from the previous year—the financial implications of over-assessment are becoming even more pressing. Realtor.com reports that the median potential savings from a successful protest is $539 per year, amounting to more than 15% of the average bill.

Where protests could pay off the most

The report identifies several states where homeowners are most likely to benefit from filing an appeal. Texas tops the list, with over 51% of homes potentially overassessed and an estimated median savings of over $600 per year. California follows with nearly 48% of homes eligible for protest and a median savings of a staggering $1,875—likely driven by long-standing caps that create large disparities in assessed values among similar homes.

The top five states where homeowners might reduce their tax bill the most are:

• Texas: 51.2% of homes; $606.66 median savings

• South Dakota: 48.3%; $431.23

• California: 47.8%; $1,875.12

• Iowa: 47.3%; $368.91

• Illinois: 46.5%; $629.76

States with high effective tax rates, like Texas and Illinois, are particularly ripe for savings, where even modest assessment corrections can yield significant dollar amounts.

The data also spotlights stark disparities in year-over-year tax burden growth. Georgia homeowners were hit hardest, with a 15.6% spike in property tax bills despite only a 4.8% increase in assessed values. Other states with notable increases include Maine (+5.9%), New Hampshire (+5.6%), and Wisconsin (+5.5%).

In contrast, some states have seen notable declines or stagnation in tax burdens despite rising home values. Nebraska saw a 15.3% drop in median tax bills, even as assessments rose 8.3%, pointing to localized reductions in tax rates.