Are Homeowners Overpaying on Property Taxes? Now They Can Find Out on Realtor.com®

Rhea-AI Summary

Realtor.com has launched a groundbreaking property tax assessment tool revealing that over 40% of U.S. homeowners may be overpaying their property taxes. The new feature, integrated into the My Home dashboard, helps homeowners identify potential savings and provides evidence for tax protests.

The analysis shows a median potential savings of $539 per year, equivalent to 15% of the average property tax bill. Texas leads with 51.2% of homes identified for protesting, followed by South Dakota (48.3%) and California (47.8%). The median U.S. property tax bill increased to $3,500 in 2024, up 2.8% from 2023.

The tool offers three key benefits: personalized savings estimates, downloadable evidence packets, and market comparisons for building appeals cases. Georgia experienced the highest tax burden increase at 15.6%, while Nebraska saw the largest decrease at -15.3%. The resource is now available across all platforms for homeowners who claim their property through Realtor.com.

Positive

• Launch of new revenue-generating property tax protest feature on Realtor.com platform
• Large market opportunity with 40.5% of U.S. properties potentially overassessed
• Median potential savings of $539 per year per property creates strong value proposition
• Feature available across multiple platforms (desktop, mobile web, iOS, Android)
• Strategic expansion of services in high-growth states like Texas (51.2% protest opportunity) and California (47.8% protest opportunity)

Negative

• Rising property tax assessments could reduce user engagement with Realtor.com's core home listing services
• Complex state-specific regulations may limit feature adoption in certain markets
• No disclosed revenue model or monetization strategy for the new feature
• Potential competition from existing property tax protest services

Insights

Digital Product Strategy Expert

Realtor.com's tax protest tool creates user value beyond listings, potentially boosting engagement and differentiation in competitive real estate platforms.

Realtor.com's new property tax protesting resource represents a strategic expansion of functionality that addresses a significant homeowner pain point. The data presented in the release - that 40.5% of U.S. properties may be overassessed with a median potential savings of $539 annually - highlights the substantial market for this feature.

This tool extends Realtor.com's utility beyond traditional listing services by addressing ongoing homeownership costs. By integrating it into the My Home dashboard, the company creates additional reasons for homeowners to engage with the platform regularly, not just during buying or selling transactions.

The implementation leverages Realtor.com's existing data capabilities, providing three key benefits as outlined in the release: estimating potential savings, accessing downloadable evidence packets, and utilizing market comparisons to build a case. The feature's ability to generate property-specific evidence formatted for tax appeals adds concrete utility.

The timing appears advantageous, as the release notes the median property tax bill increased to $3,500 in 2024, a 2.8% rise from 2023. Some states, like Georgia, saw much higher increases (15.6%). By positioning itself as a solution provider for this growing financial concern, Realtor.com addresses a widespread homeowner need.

The release states this is "the first time on a major real estate platform" that homeowners can access such comprehensive tax protesting resources, suggesting potential differentiation in the competitive real estate platform landscape. This represents a thoughtful product evolution that creates new value for users while potentially strengthening the platform's engagement metrics.

Real Estate Technology Analyst

Realtor.com leverages data assets to solve a $539 median tax overpayment problem affecting 40.5% of U.S. properties, expanding beyond transaction-focused services.

Realtor.com's property tax protest tool represents a notable expansion of functionality in the real estate platform space. The release provides substantial data supporting the feature's potential value: 40.5% of U.S. properties potentially overassessed, with median savings of $539 annually - equivalent to over 15% of the average property tax bill.

The state-by-state analysis in the release reveals significant variation in opportunities for tax relief, with Texas (51.2%), South Dakota (48.3%), and California (47.8%) showing the highest percentages of homes that might benefit from protesting. The tool appears particularly valuable in states with high effective tax rates like Texas and Illinois, where even small assessment adjustments can yield substantial savings.

What distinguishes this feature is its comprehensive approach - providing not just information but actionable resources. The release details three key components: personalized savings estimates, downloadable evidence packets with assessment values and local tax rates, and market comparisons using data from similar homes.

The release notes the median property tax burden climbed to $3,500 in 2024, emphasizing the growing importance of this homeownership cost. Some states saw dramatic increases, with Georgia leading at 15.6% year-over-year growth in median tax burden.

By positioning this as "the first time on a major real estate platform" that such a tool is available, Realtor.com appears to be targeting an underserved aspect of homeownership. The feature leverages the platform's existing property data and valuation capabilities to address ongoing homeowner financial concerns, potentially creating additional engagement opportunities beyond the traditional transaction-focused features of real estate platforms.

According to Realtor.com's new property tax report, more than 40% of properties in the U.S. may be overassessed

AUSTIN, Texas, April 29, 2025 /PRNewswire/ -- Many homeowners could be overpaying their property taxes and not even know it. In fact, 40.5% of properties in the U.S. may be overassessed, according to a new Realtor.com^® Property Tax Report. And, today, for the first time on a major real estate platform, homeowners can not only uncover potential savings, they can get the evidence they need to challenge over-assessed property values through a new tax protesting resource on Realtor.com^®.

"Most homeowners don't realize they can protest their property taxes, and even fewer know how to do it," said David Masters, Sr. Director of Product at Realtor.com^®. "We built this resource to simplify what has traditionally been a confusing and intimidating process. By integrating it into the My Home dashboard, we're giving homeowners a clear view into what they might be overpaying, equipping them with solid evidence, and making it easy to take action. Our goal is to help people feel more confident navigating the protest process, and potentially save money."

Millions Could Benefit from Protesting… Especially in These States
A Realtor.com^® analysis found that over 40% of U.S. homes are potentially overassessed to the point that the owner could save $100 or more by protesting. The median potential savings is $539 per year, equivalent to more than 15% of the average property tax bill. Some states offer especially high opportunities for tax relief.  Here are the five states with the largest share of properties for which protesting may make financial sense, and the estimated median savings if those homeowners filed a successful protest:

Top States with Highest Opportunity for Property Tax Relief

State	Share of Homes Identified for Protesting	Estimated Median Savings from Protesting
Texas	51.2 %	$606.66
South Dakota	48.3 %	$431.23
California*	47.8 %	$1,875.12
Iowa	47.3 %	$368.91
Illinois	46.5 %	$629.76

In states like California, long-standing caps on annual assessment increases have created significant variation between similar homes, which makes it more complicated to collect comparable properties because neighbors might be locked into an old assessment. This can inflate the number of properties that look like they are overassessed. Meanwhile, Texas and Illinois, with their relatively high effective tax rates, offer even small-assessment adjustments that result in major savings.

Built-In Support for Homeowners When They Need It Most
The tax protesting resource comes at a critical moment and is available to homeowners who claim their home in the My Home dashboard on Realtor.com^®. According to the Realtor.com^® Tax Protest Report, the median property tax bill in the U.S. climbed to $3,500 in 2024, a 2.8% increase from 2023. This uptick is largely due to rising home values, with median assessed values increasing by 2.0%, alongside changes in local tax rates.

Some states have seen far more dramatic spikes. Georgia led the nation with a staggering 15.6% increase in median property tax burden, despite assessed values rising by just 4.8%, indicating significant local rate hikes. Other high-growth states include:

States with the Biggest Tax Burden Hikes (2023–2024)

State	Median Tax Burden Change YoY	Median Assessment Value Change YoY
Georgia	+15.6 %	+4.8 %
Texas	+7.8 %	+10.0 %
Maine	+5.9 %	+0.8 %
New Hampshire	+5.6 %	0.0 %
Wisconsin	+5.5 %	0.0 %

However, some states saw decreases or no change to their median tax burden between 2023 and 2024 including Nebraska, Michigan, Kentucky, Washington and Tennessee, showing that these states actually experienced healthy growth in home values at the same time that property taxes fell significantly.

States with the Biggest Tax Burden Drops (2023–2024)

State	Median Tax Burden Change YoY	Median Assessment Value Change YoY
Nebraska	-15.3 %	+8.3 %
Michigan	-12.9 %	+12.8 %
Kentucky	-1.1 %	0.0 %
Washington	-0.2 %	+8.2 %
Tennessee	0.0 %	0.0 %

Why This Matters Now
With homeownership costs rising, property taxes are often overlooked, despite being one of the most significant recurring expenses homeowners face. This resource is designed to shine a light on the hidden costs of over-assessment while educating users and making the tax protest process approachable and actionable to millions of Americans who could benefit from it.

Three Key Benefits for Homeowners:

• Estimate Potential Savings - See personalized, property-specific estimates of how much can potentially be saved annually by protesting the current tax assessment.
• Access Downloadable Evidence - Access evidence packets with a home's county-assessed value, local tax rates, comparable data for nearby properties, all formatted to support an appeal.
• Use Market Comparisons to Build a Case - Easily view and download comparable data for similar homes in the neighborhood and connect with local agents for additional help, if needed.

The tax protesting resource is now available on desktop, mobile web, iOS, and Android for all homeowners who claim their property through Realtor.com^®.

Methodology
For the year over year analysis, tax records from 2023 and 2024 are collected from properties only where both years are available. Data is from the Realtor.com tax assessment database. Year over year changes are calculated at the property level and aggregated by state from there. Vermont, Indiana, Illinois, Arkansas, Washington DC, North Dakota, and South Dakota were excluded from the year over year analysis due to missing data. Potential savings from property tax protesting are calculated by comparing the actual tax bill for a property for the most recent tax year against the product of that property's effective tax rate (actual tax bill divided by actual assessment value) and the property's hypothetical assessment value (market value multiplied by the average assessment-to-market value ratio for the property's county). Market values are determined as the median of the most recent valuations from several valuation vendors.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Asees Singh, press@realtor.com

 

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SOURCE Realtor.com

FAQ

How many US properties are overassessed on property taxes according to Realtor.com's 2025 report?

According to Realtor.com's 2025 Property Tax Report, 40.5% of properties in the U.S. are potentially overassessed, with a median potential savings of $539 per year for homeowners who successfully protest their assessment.

Which states have the highest property tax protest opportunities in 2025?

Texas leads with 51.2% of homes identified for protesting, followed by South Dakota (48.3%), California (47.8%), Iowa (47.3%), and Illinois (46.5%). California offers the highest median savings potential at $1,875.12 per year.

How much did US property taxes increase in 2024 vs 2023?

The median property tax bill in the U.S. increased by 2.8% to $3,500 in 2024 compared to 2023, driven by a 2.0% increase in median assessed values and changes in local tax rates.

What new feature has Realtor.com (NWSA) launched for property tax protests?

Realtor.com has launched a new tax protesting resource in their My Home dashboard that helps homeowners identify potential overpayment, access downloadable evidence packets, and view comparable property data to support tax appeals.

Which state had the highest property tax increase in 2024?

Georgia experienced the highest property tax burden increase at 15.6% in 2024, despite assessed values rising by only 4.8%, indicating significant local rate hikes.