Owning a property is a significant achievement, but with it comes the responsibility of paying property taxes. Property taxes contribute to funding local services and infrastructure, but they can also put a strain on your finances. The good news is that understanding how to navigate the property tax system can help you lower your property taxes and keep more money in your pocket.
How to Lower Property Taxes: 10 Proven Methods for Homeowners
Are the bills piling up? Are you searching for the best ways to lower property taxes? We’re here to help.
1. Review Your Assessment
The first step to lowering property taxes is to understand how your property’s assessed value is determined. Assessments are based on various factors including market value, location, size, and condition. Review your property’s assessment for any errors or discrepancies that might be inflating the value and subsequently your taxes.
2. Appeal Your Assessment
If you believe your property has been overvalued, you have the right to appeal your assessment. Gather evidence such as recent sales of comparable properties in your area and present your case to the local assessment board. If successful, your property’s value could be lowered, leading to reduced taxes.
3. Apply for a Homestead Exemption
Many jurisdictions offer a homestead exemption, which reduces the assessed value of your property if it’s your primary residence. This exemption can lead to significant savings on your property taxes. Make sure to research and apply for any available exemptions in your area.
4. Make Tax-Incentivized Home Improvements
While making improvements to your property might seem counterintuitive, certain upgrades can actually lead to tax reductions. For instance, energy-efficient upgrades or renovations that increase accessibility might make you eligible for tax credits or deductions, effectively lowering your property taxes.
5. Check for Errors in the Tax Records
Mistakes can happen, and property tax records sometimes contain errors that result in higher tax bills. Carefully review your property tax statement to ensure that all the information is accurate. If you find any mistakes, contact your local tax assessor’s office to rectify them.
6. Apply for Senior or Disabled Persons Exemptions
Many jurisdictions offer property tax exemptions for senior citizens or individuals with disabilities. These exemptions often have age and income requirements, so be sure to check if you or a loved one qualify. Taking advantage of these exemptions can significantly reduce your property tax burden.
7. Inquire About Payment Plans and Tax Deferrals
If you’re facing financial difficulties, inquire about property tax payment plans or deferral options available in your area. These programs allow you to spread out your tax payments over time or temporarily delay them, giving you some financial relief.
8. Local Tax Incentive Programs
Research local tax incentive programs that encourage certain behaviors, such as historic property preservation, renewable energy installations, or agricultural land use. By participating in these programs, you might qualify for reduced property tax rates.
9. Stay Informed About Tax Changes
Property tax laws and regulations can change over time. Stay informed about any changes in your local tax code that could impact your property taxes. This knowledge will enable you to make informed decisions to minimize your tax liability.
10. Consult a Tax Professional
Navigating property taxes can be complex, especially if you’re unfamiliar with the intricacies of tax laws. Consider consulting a tax professional, such as a certified public accountant (CPA) or a tax attorney. They can provide personalized advice based on your situation and help you identify the best strategies to lower your property taxes.
Are You Falling Behind on Property Taxes? Renewed Homes Can Help!
As you look into the different methods that can help you lower your property taxes, remember that it’s important to follow the laws and regulations in your jurisdiction. Avoid any fraudulent or unethical methods; instead, focus on legitimate strategies that align with the tax laws in your area.
If you’re still wondering how to lower your property taxes, the experienced team at Renewed Homes could help you find creative ways to avoid tax-delinquent foreclosure.
Contact our dedicated team today, and we’ll help you save your home!