Does a Patio Increase Your Property Taxes?

You have probably heard that adding a patio (or already having one on your property) will increase the value of your home. That’s completely true, but it might make you wonder — will it also increase your property taxes?

The short answer is no, it will not mean you pay more in property taxes. In this article, we’ll explore everything you need to know about how adding a patio or deck will influence your home’s value and potentially, your tax bill.

Does Having a Patio Increase Your Property Taxes?

So, why doesn’t having a patio increase your property taxes?

The reason for this is that patios are usually small enough not to add to the square footage of your home. Because of this, they fall under the category of small improvements that don’t significantly change your property. 

There is a small caveat to this — if you add a very large patio that significantly increases the square footage of your home or one that costs more than $5,000 to install, your property taxes may go up. However, this is not the majority of cases. 

Does Having a Deck Increase Your Property Taxes? 

Having a deck does not necessarily increase your property taxes. Just like with patios, it comes down to many factors, including the size of the deck and the materials used. 

If the deck is screened or large enough to be considered an addition to your home, this can also affect your tax bill. Ultimately, it comes down to the property tax laws of your municipality. As a rule of thumb, adding a deck does not increase your property taxes. It’s up to you to check your local laws before embarking on any improvements. 

Can Outdoor Improvements Increase Your Property Taxes?

Outdoor improvements can increase your property taxes, but this depends on many factors. Everything from the size of the improvement to the type of improvement and even the materials used can influence whether the changes will reflect on your next tax bill. 

Does Adding Value Increase Your Property Taxes?

It is unlikely that an appraiser will increase the value of your property based purely on the installation of a deck or patio. However, the addition will add value for potential buyers in the future. 

Adding value to your property can indeed raise your property taxes, but this varies widely and depends on what the improvement is. 

Value improvements that aren’t visible from the outside of your home aren’t likely to affect your property taxes simply because they’re likely to go unnoticed by assessors. However, anything that adds to the square footage of your home, such as an addition or an extra large patio, might be spotted. Additions are also reflected in your county’s building permits, another flag for a tax increase. 

In other words, it’s complicated. Property taxes are famously convoluted, so there is no right answer. The best way to know if adding value to your home will increase your property taxes is to check local resources before your start your project.

Is it Different Based on Where You Live?

Property laws vary from state to state. If you live in the United States, it is important to review your state and county property laws to find out if there are any unique considerations for adding a deck or patio to your property. Variations will depend on specifics such as deck size and installation cost, though the general rule — that adding a patio doesn’t increase property taxes — is the same. 

How Much Does a Patio Increase Your Property Value?

The amount that a patio can increase your property value can vary widely depending on where you live. However, it generally falls between 8 and 20 percent, with many factors influencing the exact number. 

So, if You Add a Patio or a Deck It Can Increase Your Property Taxes?

To recap, adding a patio or a deck does not usually increase your property taxes. The exceptions are:

• If the size is more than 20 by 20 feet
• If the cost of installation is upwards of $5,000
• If the patio or deck is made of certain materials such as concrete, qualifying as a home addition

Does Replacing an Old Patio or Deck Increase Property Taxes?

In general, replacing an old patio or deck will not increase your property taxes. Since the structure was already there, you are not adding any square footage to your home. The exception, of course, would be if the replacement is significantly larger or more elaborate than the original structure. 

You will also want to check your local laws to see if any of your improvements change the status of the patio or deck. For example, in some places, using concrete instead of wood qualifies a patio as an addition to the home. 

In general, however, while renovating an old patio or deck will improve the value of your property, it will not increase your property taxes.

What to Consider When Adding a New Patio or Deck?

Before you add a new patio or deck, there are a few vital things to consider. They all start in the same place: checking your local laws and building requirements to see what restrictions you are under. 

These laws will include specifics on:

• The size of any allowed patios or decks (and at what size they are considered additions to your home and therefore subject to property tax hikes)
• The placement of these structures
• The materials used
• The cost of installation (in most places, installation above $5,000 involves an increase in taxes)
• Any additions that influence your tax bill, such as screens, doors, or flooring

Final Thoughts

So should you add a deck or patio? The answer depends on many factors, most of which are unique to your location. Generally, a modest patio will add value to your home without increasing your property taxes, making it an excellent investment.