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Renovating your home is an exciting way to improve your living space and increase its market value. But as you plan your project, it's wise to consider a potential side effect: a higher property tax bill.

While not all renovations trigger an immediate reassessment, significant improvements will likely increase your property's assessed value. This guide explains which projects catch an assessor's eye and what you can do if you feel the resulting tax hike is unfair.

Which Renovations Impact Property Taxes Most?

Assessors are primarily concerned with changes that add significant value to your home. These often require building permits, which is the most common way an assessor learns about your project.

Key projects that often lead to a reassessment include:

Adding Square Footage: Finishing a basement or attic, or building an addition.
Major Remodels: Complete kitchen or bathroom overhauls.
Exterior Additions: Building a new garage, deck, or in-ground pool.
Structural Changes: Adding new rooms or changing the layout of the house.

What about repairs? Generally, replacing what's already there (like a new roof or windows of the same size) is considered maintenance and is less likely to trigger a major reassessment, though it can improve your property's overall condition rating.

What to Do After a Post-Renovation Reassessment

After your renovation is complete, you may receive a new assessment notice reflecting the improvements. Don't just assume it's accurate.

Review the New Assessment Carefully: Check your new Property Record Card (PRC). Did the assessor correctly record the new square footage? Are all the details accurate?
Compare it to the Market: Does the new assessed value seem higher than what your home could realistically sell for, even with the renovation?
Consider an Appeal: If you believe the new value is inflated, you have the right to appeal. An inaccurate assessment of your renovation's value is a valid reason to challenge the new figure.

Smart Appeal AI can help you analyze your new assessment and find comparable properties to determine if your new valuation is fair and competitive.

Disclaimer: This article provides general information and is not intended as legal or financial advice. Consult with a qualified professional for advice tailored to your situation.