Does a Deck Increase Property Taxes? | HW Construction

Key Takeaways

• Yes, adding a deck can increase property taxes by raising the total value of a home.
• The amount a home increases varies widely by local jurisdiction.
• Factors affecting property taxes include square footage, features, and market value.

A deck can increase your home’s value, which makes it a good investment. However, increasing the value of your home can also affect your property taxes. Learn more about the potential implications of adding a deck and what to expect when tax season comes around.

Factors Affecting Deck Value

Many factors affect the impact a deck has on the value of your home, including deck type, material, location, and size.

• Deck Type: Multi-level decks, covered decks, and elevated decks typically involve footings, structural framing, and other complicated components. They typically also require a building permit. Because of this, these decks are often assessed at a higher increment than an equivalent-sized ground-level patio during a property tax assessment.
• Material: Wooden decks have the largest ROI because they have lower upfront installation costs. Composite and PVC options offer the best long-term value because they require the least maintenance and last 25-50 years.
• Location: Where you live has an impact on how valuable a deck addition is for your home. Homes in the West have the largest ROI, while wintry Midwest states have the lowest. This is partly due to the amount of time throughout the course of the year that the deck can be used, and the maintenance required to protect against extreme weather.
• Deck Size: Assessors usually value decks by the square foot. A larger deck increases a home’s assessed value more than a smaller deck, resulting in a higher property tax bill.

Decks vs. Patios

A deck is an open platform that extends from a house, while a patio is typically paved and may be either attached or detached from a home. Decks are typically raised and made with wood or composite boards, while patios are ground-level hardscaped spaces made of concrete, stone, or pavers. Decks typically add more value to a home than backyard patios.

Should I Add a Deck?

Adding a deck is a great choice if you have the means to do so. Adding a ground-level patio is also a great option for flat yards if finances are a limiting factor.

On average, new wood decks return anywhere from 68% to 95% of their cost in added home value, though this depends on the location of the home. Before adding a deck, talk to an experienced contracting company, like our team at HW Construction. You’ll want to review local zoning laws and plan for shade, space, and privacy. An experienced contractor can help you with all of that.

What Adds More Value to a Home, a Deck or Patio?

Decks typically add more value to a home than patios because they are more complicated structures. Decks typically recoup between 65% and 95% of their installation cost, with wood decks offering a higher ROI than composite decks.

Patios recoup between 50% and 70% of installation costs; however, they are cheaper to build and require less maintenance. The size and complexity of your exterior design project will affect where it falls within these percentile ranges.

How Much Will a Deck Affect Your Taxes?

The impact a deck will have on your property taxes is relatively minor. On average, a deck may raise a home’s assessed value by $5,000 to $20,000. While this may seem like a lot of money, it results in an actual tax increase of only $50 to $400 per year. Property taxes are calculated by multiplying your local tax rate by your home’s assessed value.

The Bottom Line

A quality deck can increase your home’s value and, by default, your property taxes. However, the benefits of building a deck often outweigh the costs. Many decks, especially wooden ones, return a large percentage of their initial costs in ROI. Talk to the trusted contractors at HW Construction to learn whether or not a new deck is a good fit for your home.