Home improvement refers to any type of renovation or remodelling of an existing residential building. This includes adding, altering, or improving rooms within a house as well as the surrounding landscape of the property. This industry encompasses the sale of construction materials, decor, appliances and furniture as well as the provision of services by contractors or tradespeople to carry out improvements on a property.
In 2022, homeowners reported that increasing their home’s value was the top priority for renovation projects, with a significant number planning to hire a professional contractor to make upgrades such as painting and installing new flooring. Other popular home improvement projects include converting a garage to living space, renovating closets, and installing energy-efficient windows and smart thermostats.
Depending on the state, some types of home improvements are exempt from sales tax, such as painting and resurfacing your driveway. However, if you hire a contractor to perform a home improvement project in your home, be sure to ask the contractor if the material cost is tax-exempt, or get a document with that information.
Although some home improvements will add resale value, not all will. For example, adding marble countertops to your kitchen might be a luxurious upgrade, but it won’t increase your home’s value. It’s also important to choose upgrades that will appeal to a wide range of buyers. Otherwise, you might spend thousands of dollars on renovations that don’t add much to your home’s resale value.