Which Home Renovations Cause Higher Taxes?
Thursday, June 29, 2017
Renovating your home not only adds value, but can also make your home more comfortable or functional. Some projects add more value than others, but with more value you will also end up with a higher property tax bill. Here's a look at some of the top renovations projects causing higher taxes.
Any New Living Space
Anytime you add new living space it will likely cause your property to be reassessed before tax time. You will probably see an increase in your property taxes since the new space will cause a higher value for your home. Even if you don't add an additional floor or room, you may see a higher property tax bill just from finishing a garage, basement or attic.
Whenever the square footage of living space increases, the value is likely to increase, as well. With a higher home value comes higher taxes.
Adding a Shed
It may seem like it wouldn't cause your home to be reassessed, but adding a shed could be all it takes. Sometimes, anything new will trigger a reassessment and could mean a higher tax bill.
Adding a Pool or Deck
An outside structure, such as a swimming pool or large deck could cause an increase in your tax bill. Swimming pools can add value, while if the deck is large enough, it may also add value to your home. In addition, if your deck becomes a four-season room or you add a screened in porch, it could trigger a reassessment leading to a higher property tax bill.
If you go too far with lavish bathroom renovations, or are making major updates it could impact your property value. Adding a bathroom is certainly likely to trigger a higher valuation.
Not all kitchen renovations will trigger a reassessment. If you must replace the countertops or paint the cabinets, you won't have much to worry about. However, if you make the kitchen larger or completely redo the kitchen, it could trigger a reassessment.
Several home renovations and additions can cause a higher tax bill the next time around. Whenever you need a permit or you add value to the home, it will likely lead to a higher bill when tax time rolls around. Make sure you take the potential adjustment to your taxes into account before you plan your next home renovation project.