You could qualify for property tax exemptions to reduce your property tax bill. Many states will exempt a certain amount of value based on your status, age, or other homeownership factors. In other cases, you may be able to appeal an assessment or take other action. Here are some exemptions you may qualify for and things you can do if you feel your home was overvalued.
Common Property Tax Exemptions
Many exemptions exist to help out homeowners who participate in certain activities or who may struggle to keep up with their taxes. Exemptions vary between states and counties, so your area may not have all of those listed below.
Military Exemption
Honorably discharged disabled military vets may qualify for a special exemption. These exemptions can be sizable but may be based on income or other factors.
Homeowners Exemption
Most states allow an exemption on your primary residence. The amount exempted can vary greatly. Some states only give exemptions to those with low or moderate income.
Inheritance Exclusion
Some states allow children to inherit their parents' homes without a property tax increase.
Agricultural Exemption
In some areas, active agricultural land is taxed much differently than idle land. You may need to meet minimum land sizes, though. Also, you may have to agree not to develop the land.
Renovation Exemption
While renovations often raise your property tax values, some states offer an exemption. For example, you may have an exemption if your renovation is less than a certain amount. Or you may not have to pay taxes for a certain number of years for that exemption.
Senior Exemption
Seniors may qualify for a very large exemption in some states. However, the age of a senior can vary. Generally, the ages for when senior exemptions start range from age 55 to 65.
Other Ways to Lower Your Property Tax
If it has been a while since your home was last appraised, then it may not be worth as much as the government says. You may be able to lower your property tax by appealing your current home's assessed value. This process can be time-consuming and require research on your part. For example, you may have a good case for a reduction if you find that your neighbors' homes of similar or greater size have a lower value than yours. Get an independent appraisal as well.
Property tax can take a big chunk out of your budget. While the money helps pay for some local services, you shouldn't pay more than is required. If you think you might qualify for an exemption or reappraisal, talk to a property tax evaluator, such as Texas Property Tax Reductions, to get started.
