Property taxes are a major expense for many homeowners in America. They are based on the assessed value of your property and the tax rate set by your local government. Property taxes fund important public services such as schools, roads, fire departments, and parks. However, you may be paying more than you need to if your property is overvalued or you are not taking advantage of available exemptions and deductions. Here are some tips on how to save on property taxes in America.
Review Your Property Tax Card
A property tax card is a document that contains information about your property, such as its size, features, condition, and assessed value. You can request a copy of your property tax card from your local assessor’s office or find it online. Reviewing your property tax card can help you spot any errors or discrepancies that may affect your tax bill. For example, you may find that your property has been classified incorrectly, that some improvements or additions have not been recorded, or that the assessor has used outdated or inaccurate data to determine your property’s value. If you find any mistakes, you can contact the assessor’s office and request a correction.
Appeal Your Property’s Assessed Value
If you think that your property’s assessed value is too high compared to similar properties in your area, you can appeal it to the assessor or a board of review. You will need to provide evidence to support your claim, such as recent sales data, appraisal reports, or photographs of comparable properties. You may also want to hire a professional appraiser to help you with your appeal. The appeal process may vary depending on your state and local laws, but generally, you have a limited time window to file your appeal after receiving your assessment notice. Appealing your property’s assessed value can potentially lower your tax bill by thousands of dollars.
Look for Exemptions and Deductions
Many states and localities offer various exemptions and deductions for property taxes based on certain criteria, such as age, income, disability, veteran status, or ownership of certain types of property. For example, some states offer homestead exemptions that reduce the taxable value of your primary residence. Some states also allow you to deduct a portion of your property taxes from your state income taxes or sales taxes. You can check with your state and local tax authorities to see what exemptions and deductions are available for you and how to apply for them.
Avoid Unnecessary Improvements
One way to keep your property’s assessed value from increasing is to avoid making unnecessary improvements or additions that may increase its market value. For example, adding a swimming pool, a deck, or a garage may make your property more attractive and functional, but it may also raise its assessed value and tax bill. Of course, this does not mean that you should neglect the maintenance and repair of your property, as this may also affect its value and condition. However, you should weigh the benefits and costs of any major improvements before undertaking them.
Compare Your Property with Neighboring Homes
Another way to check if your property’s assessed value is fair and accurate is to compare it with neighboring homes that are similar in size, age, condition, and features. You can use online tools such as Zillow or Trulia to find recent sales data and estimated values of nearby properties. You can also drive around your neighborhood and look for homes that have sold recently or are on the market. If you find that your property is valued much higher than comparable homes in your area, you may have a case for appealing your assessment.
Conclusion
Property taxes are an unavoidable part of homeownership in America, but they do not have to be a burden. By following these tips, you may be able to save money on your property taxes and reduce your overall housing costs.