How to Reduce Your Property Taxes: Important Tips for Homeowners

If you ask many homeowners about their property taxes, they’ll probably say they pay too much. Property taxes are real estate taxes imposed by local governments and paid by homeowners. They are classified as ad valorem, which means they are assessed based on the value of your property.

Property taxes increase as property values rise over time. Even after you pay your mortgage, property tax expenses continue until you no longer own your home. The following is an overview of property tax bills and some suggestions for lowering them.

Property taxes are calculated using two key figures: the tax rate and the actual market value of your property. A municipality determines its tax rate, often known as millage or mill rate, based on how much money it requires to pay for essential services.12 State law governs how frequently the rate can be modified. Some states enable them to be changed on an annual basis, while others do so in different increments, such as every five years.

The assessor may visit your property or do assessments remotely using software that is up to date with tax rolls. Following this assessment, your local tax collector’s office will send you a property tax bill.

Understand Your Property Tax Assessment

The first step toward lowering your property taxes is understanding how your property is valued. Investigate your local property tax assessor’s methods and check that your property’s listed attributes and valuation are correct.

Compare to Neighbors

Check if your property’s assessed value is comparable to similar homes in your community. When compared to similar properties, discrepancies in valuation can be a powerful justification for lower taxes.

Gather proof for an Appeal

If you believe your home is over-assessed, gather evidence such as recent sales of comparable properties, images of your property demonstrating the reasons for the lower valuation, and any other relevant documentation.

Apply for Exemptions

Many jurisdictions provide exemptions or discounts on property taxes to particular groups, such as seniors, veterans, and people with disabilities. Check if you are eligible for any exemptions and apply appropriately.

Consider a Professional Appraisal

Hiring a professional appraiser can provide a precise appraisal of your property, which can be utilized to support your appeal for a reduced tax assessment.

File an Appeal

Armed with your study and facts, submit an appeal to your local tax assessor’s office. Follow their recommendations closely and submit your case for a lower assessment.

A proactive approach is required to reduce your property taxes. Understanding how your property is assessed, appealing over-assessments, filing for exemptions, and staying up to date on changes in tax rules can help you save a lot of money.

Feel free to seek expert help if necessary; the investment will pay off in the long term. Remember that taking even simple steps to reduce property taxes can result in significant savings over time.