Rob Hartley
Founder, AppealDesk · February 16, 2026
How to Read Your Property Tax Bill
Updated February 2026 · 8 min read
Your property tax bill has five key sections: property details, assessed value, exemptions, tax rates (millage), and total amount due. The most important number is your assessed value — that’s the only part you can challenge through an appeal. Below, we walk through each section so you can spot errors and overpayments.
Section 1: Property Details
The top of your bill lists your parcel number (APN), address, legal description, and owner name. Errors here cause real problems — a wrong square footage, extra bedroom, or incorrect lot size inflates your assessed value. The National Taxpayers Union Foundation estimates 30-60% of properties have assessment errors. Compare listed details against your actual property.
Section 2: Assessed Value (The Number That Matters Most)
Your bill shows market value (what your county thinks your home is worth) and assessed value (the taxable portion). The relationship depends on your state’s assessment ratio. In Texas and California, assessed = 100% of market value. In Ohio, 35%. In South Carolina, just 4%.
What to check: Is the market value higher than what your home would actually sell for? If comparable homes sold for $350,000 but your county says $410,000, you likely have grounds to appeal.
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Section 3: Exemptions
Exemptions reduce your taxable value before the tax rate is applied. Your bill should list each one. Common exemptions:
- Homestead: $25,000-$100,000+ off assessed value for primary residences
- Senior/over-65: Additional reduction or tax freeze
- Disability and veteran: Extra deductions, often larger for disabled veterans
If you qualify but don’t see exemptions on your bill, you’re overpaying. They’re not automatic — you must apply. See our exemptions guide.
Section 4: Tax Rates and Taxing Authorities
Your taxes fund multiple authorities: county, city, school district, fire, library, and special districts. Each sets its own rate. Tax rates are expressed as a millage rate (mills per $1,000). A rate of 75 mills = $75 per $1,000 = 7.5%. You can’t appeal the rate — only your assessed value. School districts are typically the largest line item (50-70%).
Section 5: Total Amount Due and Payment Deadlines
The bottom shows total tax, credits, net amount due, and deadlines. Most counties allow full payment or two installments. Late payments incur penalties (1-1.5%/month) and interest.
The Tax Calculation Formula
(Market Value × Assessment Ratio) − Exemptions = Taxable Value
Taxable Value × Tax Rate = Your Property Tax Bill
Example: $400,000 × 100% − $50,000 homestead = $350,000 taxable. At 2.5% = $8,750/year. If value should be $350,000: ($350,000 − $50,000) × 2.5% = $7,500 — saving $1,250/year.
5 Common Errors to Look For
- Inflated square footage: Even 200 extra sq ft adds $500-1,500/year.
- Missing exemptions: Homestead eligible but never applied.
- Wrong classification: Single-family classified as commercial or multi-family.
- Assessed value exceeds sales: Similar homes sold for less than your assessment.
- Double-counted improvements: Renovation added without removing what it replaced.
See If Your Assessment Is Too High — Free
Enter your address to compare your assessed value against comparable sales.
What to Do If Something Looks Wrong
Factual errors (wrong sq ft, missing exemptions): Contact your assessor directly. Many fix these without a formal appeal. See lowering taxes without an appeal.
Inflated assessed value: File a formal appeal with comparable sales evidence. AppealDesk provides a professional evidence packet for $49 flat.
Timing: You appeal based on your assessment notice, not the tax bill. Check our deadline calendar.