If you’re considering remodeling your home this year, you may wonder if getting your dream kitchen (or something else wonderful) will make your property taxes shoot up. It’s true that certain major home improvements can significantly increase your home’s value and trigger a reassessment. Learn what to expect from property taxes and how to avoid unnecessary increases when you work on your house.
To see which home renovations might prompt higher property taxes, ask yourself these questions:
- Does the project significantly increase the livable square footage of the house?
- Does the project increase the number of people who could comfortably live in the house?
- Does it extend the lifespan of part or all of the house?
- Is it a major luxury?
- Will it cost you more than $5,000?
If the answer is yes to any of these questions, the home improvement will probably impact your property taxes. Your local assessor’s office will likely be tipped off when they see your permit(s) for the project.
Of course, that doesn’t mean the project isn’t worth doing! Increasing home value and livability can be worth it despite the property taxes, especially when it’s time to sell.
- Home additions
- New bathrooms (even in existing space)
- Foundation or structure renovations
- A garden shed or outbuilding
- An in-ground swimming pool or hot tub
- A new fireplace
- Converting a porch to a four-season room
- Finishing a basement
- Land improvements, such as paving a dirt driveway or fencing the property
*Remember that property taxes vary by location and the decisions of your local assessor’s office.
Have an antique home? If your home is on the historical register and you are preserving its historical characteristics, you may be exempt from property tax hikes.
You may be scratching your head, wondering how to improve your home without worrying about property taxes. Here are some updates that are unlikely to affect taxes:
- Painting the interior or exterior of your home
- Replacing or refinishing flooring
- Replacing your roof (This is considered a routine repair!)
- Installing new cabinetry
- Removing a wall
- Upgrading to energy-efficient appliances
- Adding a patio or deck
Remember that these projects can impact taxes differently depending on your neighbourhood and other factors. Your local assessor’s office may be able to discuss the potential tax impact with you beforehand.
There are plenty of ways to make your home more appealing to your family or prospective buyers. If you’re doing routine maintenance, repairs or minimal upgrades, you likely don’t need to worry about property tax increases (unless they increase for another reason).
You can count on the Neighbourly® family of home service brands for the services you need:
- Improving your heating and cooling system through an expert service like Aire Serv® isn’t likely to bump up your property taxes, and it has other benefits too.
- Glass Doctor® explains that energy-efficient windows can give you great ROI by improving the look of your home and reducing your HVAC bills.
- Consider remodeling existing rooms in your home with the help of Mr. Handyman®.
- Learn about inexpensive ways to increase the value of your home and common mistakes to avoid.
- Restore your home from fire, water or mold damage with Rainbow International’s expertise.
- Maintain your plumbing, appliances and electrical systems to keep your home comfortable.
Neighbourly brands can help you with virtually any home improvement. Our local pros are respectful and experienced! Search for your quality service today.