NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require a password.
Understanding Property Taxes
Which US Cities Will Have the Highest Property Tax Increases in 2022? (Mansion Global, Dec. 30, 2021)
“The 2022 budget for Chicago, for example, calls for a $76.5 million increase to the property tax levy, according to Mayor Lori Lightfoot’s budget, which was approved by the Chicago City Council in late October. It will mean a $38 increase for homeowners with a property valued at the average price of $250,000, according to city officials.”
The Best and Worst Property Taxes by State (The Balance, Feb. 8, 2022)
States have a wide variety of property taxes, even differing on limits and caps to how much residents can be taxed. The states with the lowest property taxes are Alabama, West Virginia, Arkansas, South Carolina, Louisiana, Mississippi, Indiana, Tennessee, Kentucky, Wyoming. The states with the highest property taxes are New Jersey, Connecticut, New Hampshire, New York, Illinois, Massachusetts, Vermont, Rhode Island, California and Texas.
Property Tax: Calculator & How Property Tax Works (nerdwallet, Jan. 20, 2022)
“Failing to pay your property taxes can result in the taxing authority placing a tax lien on the property. A tax lien is a legal claim against property or financial assets you own or may have coming to you. It’s not a seizure of your assets, but it is a claim on them. If you sell the asset, the government could be entitled to some or all of the proceeds.”
2021 Instructions for Schedule A (Form 1040) Itemized Deductions (Internal Revenue Service, 2021)
This form from the United States Internal Revenue Service provides detailed instructions so you can properly deduct your property taxes from your annual taxes. The form is updated annually, this is the form for filing taxes in 2022, which were due April 15th.
Tips for Managing Property Taxes and Finding Tax Rates (HouseLogic)
This helpful guide form HouseLogic explains where to find your local tax rates, how property taxes are calculated, what to consider for your budget, and how federal tax deductions come into play.
Property Taxes Impact on Property Value
Texans Look for Property Tax Relief (The Wall Street Journal, Apr. 27, 2022)
“The far bigger benefit of the changes will be to limit future property tax growth, as Texas property levies have soared in recent years. The state has the nation’s seventh-highest property taxes, according to the Tax Foundation, as measured by the effective rate on owner-occupied homes. That figure now stands at 1.8% of home value—helping drive up property-tax revenue by 67% since 2010 and placing Texas above New York on the pain list.”
US Home Prices are Rising So Fast, Property Taxes Can’t Keep Up (CNN, Apr. 14, 2022)
"It's hardly a surprise that property taxes increased in 2021, a year when home prices across the country rose by 16%," Sharga said. "In fact, the real surprise is that the tax increases weren't higher, which suggests that tax assessments are lagging behind rising property values and will likely continue to go up in 2022. That means bigger jumps in property taxes could be coming in years ahead.”
Homes in Poor Neighborhoods Are Taxed at Roughly Twice the Rate of Those in Rich Areas, Study Shows (The Washington Post, Mar. 12, 2021)
“These measurement errors aren’t random, according to study author Christopher Berry of the Harris School of Public Policy. Across the country, in city after city, homes in low-income neighborhoods are systematically over-assessed relative to their actual market prices, while those in rich areas are under-assessed. The net result is a transfer of billions of dollars of tax burdens from rich households to poor ones.”
Property Tax Rates and House Prices: The Impact of Relatively High and Low Property Tax Rates (Journal of Property Tax Assessment and Administration, 2020) E
“We investigated three property tax issues and summarize our research. First, what is the impact of property taxes on home values, given that the literature is inconsistent on this effect? Second, do higher property tax rates constrain house price appreciation? Third, how are lower property tax rates tied to the household tenure? Our conclusions suggest that some local governments actually collect less tax revenue as a result of excessive effective tax rates.”
5 Common Reasons Why Property Taxes Go Up, No Matter Where You Live (realtor.com®, Feb. 26, 2018)
Property taxes are always a slightly controversial subject and may drastically affect your spending depending on where you live. Though the talk around property taxes can easily spin out of control, there are five common reasons why your taxes may go up; 1) you completed renovations or home improvements, revaluation, nearby home sales, new schools, and higher government budgets.
Challenging Your Property Tax Bill
Taxes Too High? Here’s How to Protest Your Property Appraisal (San Antonio Report, May 2, 2022)
“Real estate broker Jim Hawkins said he has filed a protest on his Comal County home many times and recommends his clients in San Antonio do the same. If nothing else, it’s useful information to understand how the appraisal was developed, he said. “At the same time, I think you need to do some homework,” Hawkins said. “You just can’t go in here and say, ‘I think my taxes are too high.”
San Antonio-based Tech Company Says it Can Speed Up Homeowners’ Ability to Protest Property Taxes (San Antonio Current, Apr. 18, 2022)
A San Antonio-based startup, PropertyAxe LLC, claims it can help residents protest their property taxes in “less than 10 minutes.” The company has developed a software that gathers nearby property taxes and submits a more appropriate tax estimate to the user. The service costs $49, and those who continue in the protesting process may still have to go court.
Eight Key Steps When Challenging A Property Tax Assessment (Forbes, Dec. 1, 2020)
The following eight steps will help you successfully challenge your property tax assessment: do you due diligence when choosing an attorney and comparing local taxes, get a market analysis, take pictures of your property, contact your REALTOR or broker, schedule an appeal, contact the assessor’s office, have backup data at the ready, and compare data on local homes.
Property Tax (Tax Foundation)
Quarterly Summary of State & Local Tax Revenue (QTAX) (U. S. Census Bureau)
Significant Features of the Property Tax (Lincoln Institute of Land Policy)
eBooks & Other Resources
The following eBooks and digital audiobooks are available to NAR members:
How to Invest in Real Estate & Pay Little or No Taxes Use Tax Smart Loopholes to Boost Your Profits By 40% (eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
Property Taxes in Illinois—What is the Effect of Rapid Increases and Large Drops in House Prices on Property Taxes? (University of Illinois, 2011) [PDF link]
Challenging the Conventional Wisdom of the Property Tax (Cambridge: MA: Lincoln Institute of Land Policy, 2010) HJ 4120 B14
The Worst Tax? A History of the Property Tax in America (Lawrence, KS: University of Kansas Press, 1996) HJ 4120 F57
How to Reduce Your Property Taxes (Miami, FL: Genesis Press, 1995) HJ 3241 Ad5
Reduce Your Property Taxes (Los Altos, CA: Crisp Publications, 1992) HJ 4120 T97
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