How Building A Fence Could Impact Your Property Taxes

Building a fence might seem like a private decision between you and your household, but there are several external factors you'll want to consider before you start hammering. Although a fence can increase the value of your home and add curb appeal, it can also result in an unexpected financial burden. Depending on your municipality, adding a privacy fence could raise your property taxes.

One reason your property taxes could go up after building a fence is due to a specific ordinance that you may be subjected to in your municipality. What you want to look for is whether your area requires you to keep your property line clear. Another reason for a property tax increase can be related to home improvements that increase the overall property value. In this case, the material of the fence itself can be a deciding factor. For instance, materials like wrought iron and wood may increase your taxes more than vinyl. If you have any doubts or questions about the tax implications, always speak with an expert prior to construction.

Your property taxes are partially determined by your lot size. That means you have to be careful not to accidentally redefine the boundary of your lot by installing a fence. Property lines are actually changeable and can be altered through a mutual agreement with your neighbors. A change of boundary is then recorded by the county office. In addition to the property tax, it's important to familiarize yourself with how much it costs to build a privacy fence.

Although it can raise your property tax, there are also plenty of reasons why you'd want to consider a fence for your front yard or backyard — including potential financial benefits. For example, your fence could actually be tax deductible. Plus, if you live in a rural or forested area, property lines can be difficult to maintain. In this case, a fence can be a huge legal benefit as you may have an obligation to mark your property line due to liability laws. Before you get started, make sure to look into whether you require a permit to build a fence on your property. If you've done your research on the laws for your area and you're ready to go ahead with construction, get inspiration from these 24 beautiful horizontal fence ideas to add privacy and style to your yard.