Homeowners

Are Your Property Taxes Too High? How Homeowners May Be Able to Save $539 a Year

April 30, 2025

Rising property taxes are an unavoidable part of homeownership. However, savvy homeowners may be able to have their tax bills reduced.

About 40.5% of homeowners may be paying too much on property taxes, according to a new report from Realtor.com. Those who protest, or grieve, their taxes may be able to save a median $539 a year, according to the report.

“Most homeowners don’t realize they can protest their property taxes, and even fewer know how to do it,” Realtor.com Senior Director of Product David Masters said in a statement.

Property taxes have been rising in recent years as home values have shot up. Across the country, the typical property tax bill was $3,500 in 2024, an increase of 2.8% from the previous year, according to Realtor.com.

The report was based on an analysis of tax records and property valuations. Vermont, Indiana, Illinois, Arkansas, North Dakota, South Dakota, and Washington, D.C. weren’t included due to insufficient data.Where do homeowners have the best chance of lowering their property taxes?

Texas homeowners had the biggest opportunity for savings. More than half of homes, 51.2%, may be able to protest high taxes, according to the report.

If successful, Texas homeowners may be able to save an estimated median $606.66 on their annual property taxes.

South Dakota had the second-highest percentage of homeowners, 48.3%, who may be eligible to protest their property taxes, saving them an estimated $431.23 a year.

In California, protesting property taxes could be lucrative. About 47.8% of homeowners in the Golden State may be able to find some relief, saving them an estimated $1,875.23.

Rounding out the top five were Iowa, at 47.3% of homeowners saving an estimated $368.91 a year, and Illinois, at 46.5% of homeowners saving about $629.76 a year.

Which states had the largest property tax increases?

Property taxes shot up more in some states than others.

Georgia homeowners experienced the biggest increases with property taxes rising 15.6% year-over-year in 2024, according to Realtor.com. That’s despite property values only going up 4.8% over the same period.

Texas homeowners also received a shock with property taxes rising 7.8% year-over-year. The Lone Star State was followed by Maine, with a 5.9% increase; New Hampshire, at 5.6%; and Wisconsin, at 5.5%.