In New Jersey, there are several home improvements that can potentially increase property taxes. Adding square footage to a house through an extension or converting an attic or basement into livable space can generally lead to higher property taxes. Similarly, installing a swimming pool, adding a deck or patio, or constructing any significant improvement that enhances the value of the property may also result in increased tax assessments. It is important for homeowners to be aware of these potential tax consequences before proceeding with certain home improvement projects.