In 2024, there were 27 weather disaster events in the U.S., including the devastating Hurricanes Helene and Milton, “with losses exceeding $1 billion each,” according to the National Centers for Environmental Information.
More recently, the ongoing devastating wildfires, which started on Jan. 7, continue to ravage Southern California—and last week, a historic snowstorm barreled down on the Southern states, which could face losses of $15 billion to $17 billion due to the storm, according to AccuWeather.
The repercussions of climate disasters for homeowners can be catastrophic. For starters, insurance premiums often rise “in areas with the highest risk of natural disasters such as hurricanes or wildfires,” according to the National Bureau of Economic Research.
Furthermore, natural disasters can also affect property taxes, which can be shocking to homeowners, especially as they head into tax season.
The problem with property taxes after natural disasters
Daniel Cabrera, founder and CEO of Fire Damage House Buyer, says that natural disasters usually spur property reassessments, which temporarily lower the values of damaged properties while simultaneously reducing homeowners’ taxes.
In addition, municipalities might increase property tax rates to compensate for losses during the rebuilding process.
“For example, many homeowners in Miami saw their properties reassessed after Hurricane Irma. In areas that were not affected, tax rates were increased to help offset the loss in revenue,” he says. “In Los Angeles, wildfires similarly create more expensive places with taxes to meet increased funding needs.”
However, when a “home is destroyed in a wildfire, the property tax assessments don’t automatically reset to reflect this loss,” Newsweek reports.
That means the property’s value “remains unchanged unless the homeowner applies for reassessment.”
Homeowners in Los Angeles County who have been affected can apply for property tax disaster relief under certain circumstances, including that the loss estimate is “at least $10,000 of the current market value of the property,” according to the California State Board of Equalization.
These owners can be eligible for a temporary reduction in property taxes or a refund if they have already paid the taxes. Some taxes are refunded to the property owner if already paid.
“Once rebuilt, the property’s pre-damaged value will be restored,” the board added.
Where you live matters
The law in New York is different. The state recently enacted a bill to protect owners who have suffered property loss or damages due to natural disasters.
In December 2024, the state enacted the Climate Change Property Tax Relief bill, which “provides assessment relief to property owners within eligible municipalities; relates to payments of real property tax refunds and credits as a result of participating in the climate change property tax relief act,” according to the text of the bill.
While climate risks have affected many Americans, they haven’t affected the number of people looking to live in these areas, especially those considered desirable. A recent New York Times analysis found that hurricane-prone Florida, for example, “gained millions of new residents between 2000 and 2023.” The analysis also found that wildfire-prone California’s Sierra Nevada has seen “an influx of people even as wildfires in the region become more frequent and severe.”
According to Cabrera, climate change has not deterred demand because lifestyle and economic opportunities usually win out over risk.
“Migration into Los Angeles continues because economic opportunity and climate continue to attract, even in the presence of fire and drought risks,” he says.
How climate risks can affect your home value
Experts say that climate change directly affects property values by increasing the risk associated with properties in flood zones, hurricane-prone areas, and wildfire-prone regions.
“In Florida, properties within FEMA-designated flood zones often see reduced market appeal unless they have mitigation features like elevated foundations,” says attorney and CPA Chad D. Cummings, of the firm Cummings & Cummings Law.
Cummings adds that buyers are also wary of rising insurance premiums. For instance, in Miami, waterfront properties have shown slower appreciation rates than inland properties over the past five years.
“This is partially attributable to the skyrocketing insurance premiums resulting from the nonrenewal of existing policies and refusals by many insurers to write new policies in the Sunshine State,” he adds.
How living in a flood or fire zone will affect your property taxes
Living in a disaster-prone area can affect your property taxes in several ways. They may be assessed at a higher rate because of the cost of municipal services that include emergency response, building, and maintaining flood control infrastructure, says Cabrera.
“For example, in Asheville, NC, poststorm tax reassessments for certain flood-prone areas led to noticeable increases to fund recovery efforts,” he says.
Where do I find how much property taxes are on a home?
If you’re a homeowner, you can find out how much you’re paying on your most current property tax statements.
If you’re a buyer, you can look at the real estate listing for assessment and tax information or go to the county website to find out the annual property tax.
Property taxes can fluctuate based on various factors, such as the local real estate market.
Can I write off property taxes?
Property taxes are deductible on the federal tax return, but only if you itemize deductions and your total state and local taxes for the year do not exceed $10,000, says Mark Luscombe, CPA, attorney, principal analyst at Wolters Kluwer Tax & Accounting.
If you’re married and filing separately, the amount should not exceed $5,000, according to H&R Block.