Does A Concrete Driveway Increase Property Taxes? (Find Out Now!)
A concrete driveway makes your home look better. The improvement also adds value to your home, so you can sell the property for a higher price. Unfortunately, any home improvement also increases property taxes.
A concrete driveway increases your property taxes. The taxes are based on the value of the house and land. Any improvements that make the property worth more also increase property taxes. Concrete driveways are the most expensive, but also add the most value to your property. As a result, your property taxes increase.
Let’s take a closer look at property taxes, how they are calculated, and how a concrete driveway affects property taxes.
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What are Property Taxes?
Property taxes are taxes that are charged to the owners of a house and land. The tax level is based on the value of the property. As the value of your home and land increases, so, too, do your property taxes. The opposite is also true. When your property decreases in value, you pay less in property taxes.
How are Property Taxes Calculated?
Each city and county set the property tax rates for residents within their jurisdictions. You can estimate your property tax by multiplying the assessed value of your home and land by the tax rate. City and county governments use collected property taxes to pay for services that benefit the residents.
Assessed Value vs. Appraised Value
Property taxes are based on the assessed value of your home, not the appraised value. Appraised value is the fair market value of your home based on other similar properties in the neighborhood. In other words, this is what you can expect to get when you sell your home.
The assessed value, on the other hand, is solely used to determine property taxes. Other homes in the neighborhood are not considered with the city or county determines the assessed value of your property.
Most cities and counties limit the assessed value to a percent of the appraised value of a home.
How Much Does a Driveway Add the Property Value?
A new driveway adds $3,550 to $7,800 to a property’s value. The actual amount depends on the design of the driveway, quality of the work, and materials. Concrete is the most expensive material to use for driveways. It also adds the most value to your property.
Does a Concrete Driveway Increase Property Taxes?
Because a concrete driveway increases the value of your home, it also increases your property taxes. Property taxes across the U.S. average 0.3% to 2.21%. For a concrete driveway that increases property value $3,550 to $7,800, this means that you could pay $10.65 to $172.38 more in property taxes.
Speak with the Assessor
The best way to get details about how a concrete driveway affects your property taxes is to speak with the assessor in your city or county. Find out if a concrete driveway is included in the assessed value. The assessor can also advise you about property tax rates and the last assessed value of your home. Use this information to get a clear idea about how much more you will pay in property taxes for a concrete driveway.
Does Resurfacing a Concrete Driveway Increase Property Taxes?
Resurfacing a concrete driveway involves repairing cracks and holes, as well as sanding and sealing the driveway. This may add some value to your property, and the property taxes may increase.
Do Concrete Pavers for Driveways Increase Property Taxes?
For the most part, any improvement to your property increases the assessed value. As the assessed value goes up, so do your property taxes. Concrete pavers do not increase the property value as much as concrete pads. Therefore, the increase in your property taxes is lower with pavers versus an entire concrete driveway.
Is a Concrete Driveway Worth It?
Considering the cost of materials, labor, and property taxes for a concrete driveway, is it worth the investment? If you are planning to sell your home, it absolutely is worth it. If you are planning on keeping your home, a concrete driveway offers the following benefits:
- Lasts 50% to 60% longer than asphalt
- Stays cooler during warm weather
- Saves you money on energy costs (concrete reflects light, so you need less outdoor lighting at night)
- Holds heavier loads than asphalt
- Concrete can be sealed to resist moisture and chemicals in de-icers
- No gooey substances, unlike asphalt
- Easy to repair – just use a slurry of cement and water
Do Gravel and Asphalt Driveways Increase Property Taxes?
Depending on the laws in your area, a gravel or asphalt driveway may increase your property taxes. Gravel increases home value the least, so the resulting property tax increase may be negligible. Asphalt is the second most expensive material, so you may see a relatively moderate increase in property taxes.
One thing to remember about driveways and property taxes is that it about more than the materials. The condition of the driveway also matters. A concrete driveway that is in disrepair will not increase property value as much as an asphalt driveway that is in really good shape.
Related Questions
What is asphalt?
Asphalt is a petroleum product that is used for driveways, parking lots, roads, and other high traffic areas. The material is made with crushed rock, binders, and fillers.
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Summary
A concrete driveway does increase your property taxes. Any improvements to your home, including a concrete driveway, increases the value of your home. This includes the appraised value (fair market value) and assessed value (basis for property taxes).
The property tax that you pay is based on the assessed value of your home. An assessor evaluates your property each year to determine the amount of property taxes that you owe. This is why you may see slight changes in your taxes.
If you want to know how much a concrete driveway will increase your property taxes, speak with the assessor in your city or county.
Concrete is the most expensive material for a driveway, and it increases property taxes more than gravel and asphalt. Regardless of the cost, concrete is an excellent investment. You see the return when you sell the home. If you keep your home, the return comes in the form of durability and easy maintenance.
Jennifer L. Eggerton loves being hands-on, whether it's with a home DIY project, making repairs, re-decorating a room, or keeping life organized. She enjoys helping people by sharing her knowledge, insights, and experiences, as well as her lessons learned. In addition to her work as a writer, Jennifer is a Jeep® overlander, self-published author, and nature photographer who loves being outdoors.
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