IS YOUR ASSESSMENT CORRECT?

How to Tell If Your Property Tax Assessment Is Wrong

Most commercial property owners are over-assessed. Here's how to check yours.

SELF-CHECK

7 Warning Signs Your Assessment Is Wrong

If any of these sound familiar, your property may be over-assessed — and you could be paying thousands more than you should. For a broader look at why your property tax bill is so high, we cover the most common drivers. Learn more about how commercial properties are assessed.

Comparable properties in your area are assessed at lower values

Your property's actual income doesn't support the assessed valuation

Vacancy or occupancy issues aren't reflected in your assessment

Recent improvements are over-valued or incorrectly characterized

Your property is misclassified (wrong type, use, or zoning category)

Your assessment increased sharply without a clear market reason

Market conditions have changed but your assessment hasn't adjusted

HOW TO CHECK

How to Look Up and Verify Your Assessment

Start with your assessment notice — the document your county assessor mails each year showing your property's proposed taxable value. If you don't have it on hand, search your county assessor's website by parcel number or address. Once you have the number, compare it to reality. Pull your property's actual net operating income, recent lease rates, and current occupancy. Then research comparable sales — similar properties that sold recently in your submarket. If your assessed value per square foot is significantly higher than what comparable properties sold for, or if the income your property generates doesn't support the assessor's valuation, you likely have grounds for an appeal. Our guide on assessment vs. market value explains exactly how to make that comparison, and can I lower my property taxes covers your options from there. For guidance on what evidence to gather, see our property tax appeal evidence guide. Assessment rules differ by state — see our guides for Michigan and Ohio.

Property owner reviewing tax assessment documents

WHERE ASSESSORS GO WRONG

Three Valuation Approaches — and How Each Can Overstate Your Value

Assessors use one or more of these standard methods to estimate your property's market value. Each approach has specific failure points that lead to over-assessment — and each is routinely challenged in an assessment appeal across Indiana and the industrial corridors of Wayne County.

Cost Approach Errors

The cost approach estimates what it would cost to rebuild your property from scratch, minus depreciation. Assessors frequently underestimate depreciation and functional obsolescence — especially on older buildings with outdated layouts, inefficient systems, or deferred maintenance. If your building couldn't be leased at rates that justify replacement cost, this approach overstates your value.

Income Approach Errors

The income approach converts your property's net operating income into a value using a capitalization rate. Errors are common: assessors may assume higher rents than you're actually collecting, underestimate vacancy, ignore tenant concessions, or apply a cap rate that's too low for your property's risk profile. Any of these mistakes inflates your assessed value.

Sales Comparison Errors

The sales comparison approach benchmarks your property against recent sales of similar properties. Assessors sometimes use sales that aren't truly comparable — different submarkets, property conditions, or transaction types. They may also fail to adjust for differences in size, age, condition, or lease terms, resulting in an inflated comparable value.

WHAT TO DO NEXT

Three Steps to Take If You Suspect an Over-Assessment

You don't need to be certain your assessment is wrong to take action. Here's how to move from suspicion to clarity — and you can always explore our services to see how EPTA can help.

Review Your Assessment Notice

Check the basics first: square footage, property classification, land value, and building value. Errors in these details are more common than most owners realize. Even a wrong property type code can shift your assessed value by tens of thousands of dollars.

Compare to Market Evidence

Pull your actual income and expense data, research comparable sales, and check current market cap rates. If the numbers don't line up with your assessment, you have a potential case. See our evidence guide for exactly what to gather.

Request a Free Assessment Review

Not sure what the numbers mean — or whether the gap is big enough to justify an appeal? That's what we do. Request a free review and we'll analyze your assessment, compare it to market data, and tell you exactly where you stand. No fee unless we save you money.

Compare your assessed value to recent comparable sales, your property's actual net operating income, and current market conditions. If comparable properties are assessed lower, your income doesn't support the valuation, or your assessment jumped sharply without a clear reason, you may be over-assessed.

Common errors include overstated rental income assumptions, incorrect square footage or building classification, failure to account for vacancy or deferred maintenance, using a cap rate that's too low, and relying on non-comparable sales from different submarkets.

Start with your annual assessment notice, which is mailed by your local assessor's office. You can also search your county assessor's website using your parcel number or property address. The notice will show your assessed value, property classification, and in some states, the methodology used.

Yes. Assessors often rely on broad market data and lagging indicators rather than real-time market conditions. They may also use outdated income assumptions or miss factors like rising vacancy. This disconnect between assessment trends and actual market conditions is one of the most common reasons commercial properties are over-assessed.

Review your assessment notice for errors in property details. Compare the assessed value to recent comparable sales and your property's actual income. If you find a gap, gather supporting evidence and consider filing an appeal. You can also request a free assessment review from a property tax consultant who can analyze your situation and tell you whether an appeal makes sense.

Commercial property tax appeal background

NOT SURE? WE'LL CHECK FOR FREE

Get a Free Assessment Review

You don't need to prove your assessment is wrong before reaching out. Send us your property details and we'll do the analysis — comparing your assessed value to market evidence across all three valuation approaches.

If there's a case, we'll handle the appeal. If not, we'll tell you. No cost, no obligation.

Capitol building representing property tax authority