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Do you pay property taxes on an ADU?
Thinking about building an ADU. Do I pay property taxes on the ADU? Are those taxes calculated differently than my house?
Asked By Eli | Kankakee, IL | 60 views | Remodeling | Updated 1 month ago
Answer(3)
Amanda Courtney
REP Realty Group
Building an ADU will trigger a supplemental tax assessment. The good news? In most jurisdictions, your primary home’s value is not reassessed. You only pay additional taxes based on the construction cost or added value of the ADU itself.
- 1 week ago
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Cassidy McWherter
Orlando's Finest
Yes — in most cases, adding an ADU (Accessory Dwelling Unit) increases the overall assessed value of your property, which can increase your property taxes.
The ADU isn’t typically taxed separately like a standalone property. Instead, the county reassesses your home based on the added square footage and improvement value. The amount of increase depends on:
• Size of the ADU
• Construction quality
• Local assessment practices
• Whether it’s attached or detached
Before building, it’s a good idea to call your county assessor’s office to understand how they calculate added value.
If you’d like help estimating how an ADU could impact resale value versus tax increase, I’m happy to help you run the numbers.
The ADU isn’t typically taxed separately like a standalone property. Instead, the county reassesses your home based on the added square footage and improvement value. The amount of increase depends on:
• Size of the ADU
• Construction quality
• Local assessment practices
• Whether it’s attached or detached
Before building, it’s a good idea to call your county assessor’s office to understand how they calculate added value.
If you’d like help estimating how an ADU could impact resale value versus tax increase, I’m happy to help you run the numbers.
- 3 days ago
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- Unhelpful (0)
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I have to first preface by saying im not an accountant nor am I am attorney. You don’t get taxed extra just because it’s an ADU — you get taxed because you added more livable space. Normally we provide an answer to show our expertise. I provide this from a place of truly trying to help (and potentially provide a more fruitful conversation with your real estate attorney and local taxing municipality. An interior ADU in Kankakee is the "quicker, profitable" route because the $75k exemption will likely "hide" the entire tax increase for four years. A detached ADU will likely exceed that exemption, leading to a permanent (and higher) step-up in your annual tax bill
- 1 month ago
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