Does a Detached Garage Add to Property Taxes?

There is a lot to love about adding a detached garage to your property. Of course, it’s easy to be sold on the benefits of a detached garage, but it’s a little harder to convince yourself – or your spouse – to spend the money. Not only is there the cost of construction to consider, but you’ll also need to think about any additional costs that will come along with the project.

This brings us to the potential of additional property taxes. Paying property taxes is one of the unwelcome responsibilities that come with owning land, so adding to your property tax bill is something you probably aren’t in a hurry to do. So, what kind of impact will a new detached garage make on your tax liability? Let’s take a closer look below.

If you decide to go ahead with a new detached garage project, turn to our team at American Carports, Inc. for help. We make it easy thanks to our Build & Price tool which allows you to customize a metal structure to perfectly suit your needs. You can also contact us directly if you need assistance. We’d love to work with you!

A Simple But Complicated Equation

When you increase the value of your property, your property taxes can be expected to go up at the same time. So, doing something like building a new detached garage on your property is going to elevate the value of that property, and you will be faced with a bigger property tax bill as a result. In that sense, this is a simple enough situation to figure out. When you add value, you pay more.

The tricky thing here is determining just how much of a tax hike you will experience. Tax rules vary somewhat wildly from one place to the next, so you might find that your structure doesn’t have much of an impact on your bill – if any at all – or it might make quite a difference. It could be useful to do a bit of homework before taking on this kind of project, including contacting your local tax authority, to gain some clarity on how these things are calculated where you live.

What About a Business Addition?

If the detached garage you add to your property is for business purposes, the tax picture will look somewhat different. It’s quite likely that you’ll be able to write off the expense since it was for your business, as long as you meet the qualifications for doing so (such as using the space only for business and using it as your primary location). Again, as with all tax situations, the right thing to do is connect with a professional to discuss the situation and sort out what the outcome will be based on the specifics of your project.

Explore Exemptions

There are certain cases where property owners qualify for tax discounts or exemptions based on their personal status. Being a veteran is one common example of this type of benefit, but that’s not true in all places. A local tax professional with knowledge of the rules in your area would be able to help you understand if any available exemptions apply to your situation. Even if you don’t have a connection with a tax professional, an experienced real estate agent who regularly works in your market may have some knowledge that could be helpful.

Value on Your Purchase Matters

Knowing you might wind up increasing your tax liability a little bit through the addition of a new garage, it would be smart to make sure you get the best possible value for your money when buying the garage itself. That’s easy to do when you choose American Carports, Inc. for the project. Our metal garages are affordable yet durable, meaning they deliver value from the start – and that value only grows as the years pass and the building continues to get the job done.

You won’t mind those extra taxes so much when you remember just how much your new garage is doing for you day after day. And, whenever the day comes to sell your property, that value you added will come in handy and you should be able to command a higher sale price.

While you might need to pay some extra property taxes for the value you’ve added to your property in the form of a detached garage, that bill might not be as bad as you fear. The best approach is just to consider the property tax factor as one component of the overall price of the project. If the job still falls within your budget, and you are excited about everything that a detached garage can offer, reach out to American Carports, Inc. to get started. We hope to serve you soon!