Many homeowners may wonder whether adding an outdoor patio, deck or other addition to their home will raise their property taxes.
Property taxes are one of the most contentious issues in a homeowner’s life, often surprising property owners with unexpectedly high bills.
Does a Patio Increase Property Taxes?
While adding a patio will add to the value of your property, it is not something that can increase your property taxes. A patio doesn’t increase square footage and it doesn’t contribute to useful living space on the property.
So unless you actually increase the room in your house by building a bigger one or turning a spare bedroom into an office, you likely won’t be taxed at a higher rate because of a new backyard addition.
That doesn’t mean that you won’t be taxed more than your neighbors, however. Some properties are simply worth more than others and have higher tax rates.
How Much Do Patios Add To Property Value?
A recent informal poll answered this question for over 500 homeowners. The results were interesting.
On average, those with decks reported that they added approximately 8-20 % to their home’s value. This number is quite different depending on where you live.
Does A Concrete Patio Increase Property Value?
Yes, A study shows that a tangible increase in property value is caused by installing a concrete patio for outdoor entertaining purposes.
Surprisingly enough, all five homes appraised showed an increase in price upon resale. There were no cases where the client lost money on the sale of their home because it had a concrete patio installed.
Does a Deck Increase Property Taxes?
Building a deck is considered a capital improvement by the IRS and may result in an increase in local property taxes.
Taxes vary by city, so check with the local tax assessor before starting any construction or repair work.
How Much Do Decks Add To Property Value?
Wood or concrete decking has been shown in studies to increase property values by between 6-13%, while decks made from aluminum reportedly add about half that amount.
Decks are expensive additions to a home. A sturdy, attractive deck can cost more than $15,000.
And the idea of shelling out that much money may make you pause before adding one to your house.
In fact, deck-related sales at Home Depot alone have brought in more than $7 billion since 2000, according to company spokesman Stephen Holmes.
Is Covering My Patio Worth The Cost?
Yes, It is if you can afford it. If you decide on adding a single layer covering over your new concrete slab, be sure that the shade structure isn’t too limiting or there won’t be much-added value.
A pergola, for example, would not provide the same value as a patio room that can serve double duty during both rain and sun conditions.
It’s important to plan ahead when it comes to resale time, but take care not to cut out too many options for yourself or your future homeowners if you intend to use your backyard space in new ways throughout the years.
Just How Much Is Patio Space Worth?
One way to calculate the added value for your home is to compare nearby sales with and without patios.
You can also ask local real estate agents about their experience in dealing with patio projects as it relates to increased property values.
However, you may want to consult an architect or general contractor before installing a new concrete patio so that you make the best investment for your needs..
A patio is generally a good investment for homeowners. It provides an opportunity to enjoy the outdoors even when it’s raining or too cold outside.
Plus, patios let you entertain guests and spend quality time with your family without having to go far from home.
But how does installing a patio affect property taxes? That depends on where you live in North America, but most of the time they won’t lead to higher property taxes.
In fact, some jurisdictions might offer tax incentives if you install a deck or porch!
Resources: Home Owners Association