There are many benefits to having a swimming pool in your home. However, they can be very expensive to install, requiring you to hire builders, excavators, and tilers. But one of the biggest expenses could be taxes. So, do swimming pools increase property taxes?
Swimming pools are considered a permanent addition to your home. As a result, the value of your home will increase, which increases the amount you will need to pay in property taxes. How much your taxes will increase by will depend on the size of the pool that you install.
When you are building a pool, you want to think about the long-term implications. This can include the amount that you will be expected to pay in taxes.
To help you do this, let’s take a closer look at this area and how it can impact you.
As we’ve mentioned, installing a pool will often produce an increase in your property taxes. When they find this out the first question that most people have is how much does a pool increase property taxes?
This is very complex, depending on several factors. However, one of the most important considerations might be the type of pool that you choose to install and where it’s located.
To make this situation clearer, we will need to look at how your property taxes are assessed. This will determine what impact installing a pool will have on how much you will need to pay.
In most cases, you will have an assessor come to your house. They will be responsible for examining the property, finding out how much it would be worth if it was sold on the market.
There are multiple ways that they will be able to do this. Typically, though, they will compare your house with those in the surrounding area to get a comp price. This gives them a rough estimate of the market value of your property.
You will then need to pay a fraction of the property’s value. The percentage you’ll need to pay will often vary from state to state. For this reason, you should check your local regulations.
Now that we have a better understanding of how the assessment process works, we can focus on how it applies to pools. In this case, do above ground pools increase property tax?
Your pool is considered a permeant fixture and a part of the property. As a result, it can be assessed for property tax. Because your pool is adding value to the property, it will increase the amount of property tax you will need to pay.
How much the increase will be depends on the type of market that you are in. For example, if you have warm summers, a pool will be a very valuable asset. They will also need to think about the type of pool that you’ve installed.
There are two types of pools on the market, in-ground and above ground pools. The assessor might view each of these slightly differently. So, how much do your taxes increase with an inground pool?
These types of pools tend to require more effort to install than an above ground pool. As a result, they will increase the value of your home more. As a result, they will mean that you need to pay more in property taxes.
The exact amount you will be expected to pay can depend on the type of market that you are in, which determines what the buyer is looking for.
As a result, a similar pool can cause an increase of $150 in one area and an increase of $400 in another.
Also, the assessment process can vary slightly from state to state. Because of this, you should make sure to check your local regulations to find out how your property is likely to be assessed.
As we’ve seen, your swimming pool can increase property taxes. But, is there any way of reducing the amount of taxes that you will be expected to pay? Can you write off a swimming pool on your taxes?
For most people, you won’t be able to write off your swimming pool. However, there are a few specific times where you might be able to take advantage of tax breaks to write off your pool.
In most cases, installing a pool counts as a leisure purchase. As a result, you will need to pay taxes on it.
However, this might not be the case for all people. For some, a pool could count as a health expense. For example, you might need it to do a form of aquatic therapy to help you heal after an injury. However, this can be very difficult for you to prove.
To claim a tax break, you will need to show that the pool is used for health and no other reason. As a result, you might want to hire a tax law expert to help you prove your case.
As we’ve seen, your taxes will increase when you install a pool. But this won’t be the only expense that might go up. But how will a pool affect my home insurance premiums?
In most cases, these will increase once you install a pool. Like taxes, the amount of the increase will depend on the type of pool that you have installed.
The increase in insurance premiums stems from an increase in the risk associated with insuring the property.
For example, when you put in a pool, there is a greater chance that an accident will occur on the property.
Sadly, things like drownings are still common. It might also increase the risk of property damage from flooding events.
The amount your home insurance will increase will often depend on the way that you have built the pool. For example, if you have a strong fence around the property, the chances that a child will be able to enter unsupervised goes down.
To make a revised assessment of the insurance risk, an assessor will come to the property and inspect the pool and the way that it’s been built.
During this time, they will take several factors into account. For example, larger pools might pose a bigger threat than a smaller pool.
Also, there might be some differences in the risk posed by above ground and inground pools. They will also need to think about the depth of the pool.
A pool can be a great addition to your property, giving you a place to cool down during the warmer summer months. However, because the pool will increase the value of the property, you can expect an increase in property taxes.
Also, it can make it riskier to insure the property, causing your insurance premiums to go up. How much these will increase will often depend on the type of pool that you install.
However, these costs might be offset in the long-term, by the higher price that you’ll be able to attract when you sell the property for.