Building a deck has many advantages. Adding a patio increases your home’s beauty and comfort. It’s also a perfect place to sit back and relax. A well-built composite decking, partnered with a properly maintained yard, is the best place to host parties and social gatherings. Will adding a deck increase my taxes?
But despite the numerous advantages that decks bring to the table, many are still doubtful whether they should build one or not. One of the few concerns regarding the construction of patios and decks is tax. Many are worried, thinking that their property tax will increase when they build one. But the question is; does it really increase your taxes?
Property Value and Property Tax
Property tax laws are complicated. Many people have the only slightest idea of how it works. You’ll have to read a few pages to understand it. To further complicate it, property taxes differ depending on where you live. The laws applied to your current residence may not apply at all in other places. However, there’s a common denominator among all property tax laws. As your property value goes up, your property tax also increases.
So what does it mean? Most improvements, renovations, and projects done to your home will add value to the property. In turn, it will also increase your property tax.
Another thing to remember is that the increase in your property tax is proportionate to the increase in your home’s value. So bigger projects, such as adding a sunroom or basement and kitchen remodelling, will add a bigger value to your home. Thus, you’ll get a bigger increase in property tax. Whereas smaller projects won’t likely increase your tax as much.
Freestanding Decks and Standard Decks
Another thing that you should consider is whether you’re building a freestanding deck or a standard deck. What are these, and how does it affect in increasing your property taxes?
Standard decks are decks that are the most common type of decking. These types of decks are directly connected to the walls of your home. But how does it affect property taxes? In most places, any structure fixed to your home is considered part of it. So, a standard deck will more likely be considered a home improvement, and thus will likely increase the value of your home.
On the other hand, there are also freestanding decks. They are also called floating decks. Unlike standard decks, they are in no way connected to any part of the house. Instead, they are built on top of the ground. When building these types of decks, you usually won’t need to get a building permit. Adding a deck increase my taxes.
Because of their construction, they are easily removed and are not considered a fixed structure. The same can be said for decks installed using removable decking board tiles. So, freestanding decks will less likely increase your home value, which in turn won’t likely add to your property tax.
By How Much Will Decks Increase Taxes?
The next question is, how much will a deck increase your property tax value? It depends. As previously mentioned, as your home value goes up, your tax bill also increases. But aside from that, there are other factors that you should take into consideration.
For instance, your location and the desirability of such features increase your property tax. For example, a deck installed in homes where outdoor living is not necessary, the desirability of a deck is low. In turn, adding a deck will less likely increase the value of your home. On the other hand, in places where decks are desired, you may likely see a higher increase in your tax bill.
Another thing that you should consider is the scale or size of the deck. A bigger deck means a higher tax increase compared to a smaller one. So before building a patio, make sure to consider size vs. value. If unsure, you consult a professional assessor to get a better estimate.
Will adding a deck increase my taxes? To summarize everything, a deck will likely add value to your home, thus increasing your property tax. Fixed structures such as a standard deck will more likely add to your tax bill compared to free standing decks.
If you want to build a deck, it’s best to consult with a professional assessor or your local tax office to get an estimate on how much your deck will add to your taxes.