We hear all the time that homeowners think they are paying too much in real estate tax, and sometimes, they aren’t wrong! To figure out if you are paying too much in real estate tax you must first know how much the assessed value of your home is. An assessed value is different than an appraised value. It is determined by the county you live in at a specific period in time – usually in the past. This assessed value then needs to be multiplied by the current common level ratio. This calculation of assessed value, multiplied by the common level ratio, equals what the county thinks the current market value of your home is.
Current common level ratios are as follows:
Adams County – 1.19%
Cumberland County – 1.24%
Dauphin County – 2.15%
Lancaster County – 1.66%
Lebanon County – 1.59%
York County – 1.76%
***Common Level Ratios Effective 07/01/2023 – 06/30/2024***
So, as an example: a home assessed at $125,000 located in Dauphin County, has an implied market value of $125,000 X 2.15 = $268,750.
Once you know the implied market value of your property, we can then help you determine if you are paying too much in real estate taxes. If the actual market value of your property is lower than the implied value, there is a good chance that you are paying too much in real estate tax!
The next question we get asked all of the time is, “Why did my taxes go up?” This one is a little harder to answer. There are several things than can trigger a reassessment, below is a list of the most common:
- The county you are located in decides to do a county-wide reassessment.
- You pull a building permit to make a change to the interior or exterior of your home.
- The millage rate for the municipality you live in may have gone up.
- You sell your home, and the county reviews the photos published online and makes a correction to the tax record.
Real estate taxes are inevitable; however, no one should be paying more than their fair share. Give us a call to see if there is anything we can do to help get your taxes lowered!