20 Ways to Reduce Your Property Taxes

It can be hard for homeowners to pay property taxes, but there are many ways to lower them. You can lower the amount you owe every year by learning about local tax laws, using exemptions, or even questioning how much your property is worth. This article lists 20 ways to lower your property taxes, such as making changes to your home or applying for deductions. These tips can help you save money and make sure you’re not paying more than you should, no matter how long you’ve lived in your home or if you just bought it.

1. Challenge Your Property’s Assessment

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You can appeal the property tax assessment if you think your home is worth more than its stated value. Tax assessors in your area occasionally make mistakes, so checking your home’s value may show mistakes. You can lower your tax bill if you successfully get your home’s value lowered.

2. Apply for Homestead Exemptions

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A homestead exemption lowers your home’s value, and you must pay taxes in many states. You may not have to apply for these exemptions, which may be given automatically. Especially for first-time homeowners and seniors, they can save you a lot of money.

3. Claim Senior Citizens’ Tax Exemptions

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Many local governments let seniors get tax breaks or exemptions if they are over a certain age. Different programs offer different benefits, but they usually let people pay less or no property taxes at all. Check the rules in your state and apply for any benefits you are eligible for as a senior.

4. Explore Veteran Exemptions

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Veterans may be able to get property tax breaks or exemptions based on their service. These benefits differ in each state and sometimes depend on whether the veteran is disabled. You can find out about programs in your area by calling the government or the veteran’s office.

5. Look for Disability Tax Exemptions

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If you or someone in your family has a disability, you might be able to get your property taxes lowered or waived. These programs are available in many states to help disabled people handle the costs of homeownership. Check with your local assessor’s office to see what you need to do to get these exemptions.

6. Consider Agricultural or Green Space Exemptions

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Some places offer lower tax rates on land used for farming or left empty as green space. These programs help to keep open land and farmland in good shape. To be eligible, your property must meet certain requirements, such as being zoned for agricultural use.

7. Take Advantage of Energy Efficiency Incentives

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You might be able to get tax credits or rebates for installing systems that use less energy, like solar panels or windows that save energy. People who make their homes more energy-efficient can get a tax break in some states. This could save you money on your property taxes and your energy bills.

8. Understand Property Tax Caps

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There are limits on how much property taxes can increase yearly in some states and cities. If you know about these caps, you may be able to better plan for future tax increases and keep your taxes from going up too much. Make sure you know the tax cap rules in your area.

9. Use Tax Deferment Programs

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Tax deferment programs let people put off paying their property taxes for a certain amount of time. These programs can help people immediately with their money and are usually open to seniors, veterans, and disabled people. Most of the time, the taxes that were put off are due when the house is sold or the owner dies.

10. Apply for Low-Income Tax Relief

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You might get tax breaks if your income is below a certain level. These programs aim to lower homeowners’ property taxes for those with low incomes. Check with your local tax office to find out if you are eligible and how to apply.

11. Check for Tax Credit Opportunities

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Some states give tax breaks on real estate based on things like age, disability, or income. The amount of property tax you owe can decrease because of these credits. Find out what credits are available in your area to take advantage of any discounts.

12. Consider Downsizing Your Property

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If you have a house that is too big for you, you might want to downsize to a smaller one to lower your property taxes. The value of a smaller home is usually lower, which means the taxes are lower. This choice might not work for everyone, but it can be a good way to save money in the long run.

13. Increase Your Home’s Depreciation

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You can increase depreciation for rental properties by keeping good records of improvements and taking advantage of tax breaks for rental property deductions. The taxable value of your property goes down over time, which can lower your property taxes. Ensure you’re taking advantage of all the tax breaks that rental property owners can get.

14. Check for Errors in Your Tax Bill

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Your property tax bill might have mistakes sometimes, like the wrong type of property being taxed or old tax rates. You can find these mistakes by carefully going over your bill. Talk to the local tax assessor’s office about them if you find any.

15. File for a Property Tax Freeze

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In some places, you can get a tax freeze, meaning your current property tax rate stays the same for a certain amount of time. This is often open to people over 65 or who have disabilities. If you are eligible, a property tax freeze can keep your taxes from increasing and give you peace of mind.

16. Invest in Property Renovations

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It might not make sense, but some improvements can actually lower your property taxes. You might be able to get tax breaks to make your home more energy efficient. You may also get tax breaks for renovations that lower your overall taxable value.

17. Apply for Historical Property Exemptions

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If you own a historic property, you might be able to get tax breaks because it is a historic preservation property. Many places offer lower taxes to people who take care of historic homes. Find out if your property meets your city’s historic preservation requirements by looking into their rules.

18. Use a Property Tax Consultant

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Hiring a property tax consultant can help you understand how tax assessments and exemptions work. They can also help you appeal your decision if you need to. Consultants charge a fee, but their knowledge can help you save money on your taxes.

19. Stay Informed on Local Tax Laws

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Property tax laws can change, so knowing about new tax laws or exemptions can help you pay less in property taxes. A good way to stay up to date is to sign up for local tax updates or go to local government meetings. If you stay up to date, you might find new ways to lower your tax bill.

20. File Tax Appeals Regularly

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It’s important to keep appealing your property’s assessment even after you’ve been successful the first time. Property values change over time; a new assessment could mean your taxes go up. You can keep your property taxes as low as possible by appealing them every year.

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