You live in a beautiful home, and you want to show it off. It’s not enough to have your friends over for dinner – you want them to be able to enjoy the outdoors too.
You could always buy an expensive deck or patio set, but does it make sense financially? And does a patio increase property taxes or overall value?
Anything that is or can be classified as an “improvement” to your property will typically be taxed accordingly. Whether this involves you using concrete, stones, or tiles, it is still a property improvement.
A lot of people believe that patios can significantly increase your property taxes when they are connected with other improvements on the land.
If there is any way possible for you to do all these things without spending as much money as a patio would cost you, it might be a good idea to handle your outdoor living space in another way.
What Style of Patios May Cause Changes to Property Taxes
You may wonder what materials may make for the valuation and cause a higher increase in your property taxes.
Your patio will affect the valuation of your home, and using some materials may cause you to pay more in property taxes than others.
In general, brick patios (and especially pavers) are associated with higher valuations while wood decks or any other type don’t make as large a difference in value.
It does not matter if you use brick pavers, brick tiles, or any other type of brick on your patio.
Does a Paver Patio Increase Property Taxes
As stated above, a paver patio will typically lead to a higher property valuation than the equivalent wood decking.
Depending on the area you live in, the value of your home does not change that much from adding a patio with pavers versus one with wood.
The main reason for this is that people are looking at the overall cost to build, the materials needed, and whether or not it will look attractive.
The materials needed and the labor costs associated with installing a patio will be higher for brick pavers than for wood, and that does not include material costs.
Plus, installation is likely to be more complex as laying bricks precisely does require some experience (or at least careful measurements).
It does not matter if you are layering bricks or using bricks with grooves, beveled edges, or another type of surface.
In any case, the brick patio adds to a higher property evaluation than an equivalent wood decking.
That doesn’t mean you will always pay more in property taxes on a home with a brick patio instead of one made from wood, but it does lead to a higher overall evaluation.
Does a Concrete Patio Increase Property Taxes
Overall, adding concrete does NOT typically lead to an increase in your property taxes.
This is a common misconception because when you add any ground covering, the valuation does go up but there is nothing about concrete that does it more than any other material.
If you live in a state with concrete taxes, the government does not count it as property. Instead, they assign an assessment of the overall cost of installing the patio, including labor costs.
This makes sense because if you hire someone to lay down pavers or concrete, they will charge you for their time, which does not reflect property value.
It does not matter if you install the materials yourself or hire a professional to do it because both of them work with different types of equipment than what is typically in your home.
As a result, concrete does NOT typically increase your taxes but reflects the overall cost of installing it.
Does a Wood Patio Increase Property Taxes
As stated above, wood does not typically cause an increase in property taxes but does reflect the overall installation cost.
The only difference is if you use a material like cedar, there may be some deterioration issues with using cheaper wood boards that don’t hold up to the weather.
If you live in a rainy area, using cedar wood reflects higher values because it does not rot like other woods tend to do over long lengths of time. You can also use composite materials that are resistant to rot and insects.
Overall, your patio does NOT typically increase or decrease your property taxes in most areas unless it’s a brick or concrete patio.
Increase Taxes by Adding a Pergola to Your Patio
What about adding to a patio a cover, like a sizeable full coverage pergola, over the existing patio? Does a pergola increase property taxes?
Yes, it does. It carries the same penalty as a regular, separate structure built in your backyard, i.e., you pay more property taxes.
This doesn’t mean you shouldn’t add one but weigh the pergola’s cost against the benefit of an additional expense.
Does Building a Pergola Increase Property Taxes?
Before constructing a pergola, homeowners should consider the permit requirements for building a pergola in their area. While the installation of a pergola typically does not directly impact property taxes, failure to obtain the necessary permits can result in fines or penalties. Understanding local regulations regarding permit requirements for building a pergola is crucial to avoid any unforeseen financial complications.
What Other Yard Improvements Can Increase Property Taxes?
There are many ways you can add more property taxes by adding to your patio’s overall appeal.
You can make a patio look nicer by improving the landscaping, installing lighting to enhance your nighttime view, or even adding a hot tub .
These are all upgrades that are sure to increase property taxes. In addition, there are also ways to decrease property taxes.
If your home does not meet the state’s minimum square footage, you can knock off a chunk of the taxable value; check with your local offices if this could apply.
This does not mean that your patio will increase taxes; it simply means that if you add on to your home and create a new patio, this additional space could decrease taxable value.
Overall property tax is based on assessed valuation, including land, improvements, and other factors, including location.
Does an Outdoor Fire Pit Increase Property Taxes
An outdoor fire pit does NOT typically increase your property taxes but does reflect on the value of building a new one.
In most areas, the only reason for this is because they look lovely and are great places to warm up in the colder months of winter, effortless light options like the Solo Yukon, or you can go with their smaller version, the Solo Stove Bonfire Fire Pit.
Does a Hot Tub Increase Property Taxes
Adding a hot tub sounds terrific, but does it increase property taxes? They don’t directly impact you in higher taxes, but they can reflect a higher value on your home.
As you make improvements to the exterior of your home, this adds to the overall value and increases property taxes.
How Does Adding an Enclosed Patio Affect Property Taxes?
Adding an enclosed patio can affect the cost of property taxes. The additional living space can increase the overall value of the property, which may lead to a higher property tax assessment. It’s important to consider the potential impact on property taxes before investing in an enclosed patio.
Final Thoughts on Patios Increasing Your Property Taxes
So, can a patio increase property taxes? In nearly all cases, this will be a yes as they are improvements to your overall property and are included in the valuation, but the amount will vary widely.
The best way to verify this as a homeowner is to contact your local assessor’s office. They can give you all the information needed regarding how different types of patios may affect your yearly assessments.
So no matter what style of material or design you’re considering building for your next outdoor project, contact them first!
