How to lower your Property Tax in 2022

If you own property, real estate taxes can significantly increase the cost of homeownership. Your local tax assessor should provide you with a statement explaining how your tax bill was computed. You won’t be able to challenge the tax rate, which is generally established at the county level, but you will be able to challenge your home’s assessed value if you believe it is inaccurate. While you will never be tax-free while owning a home, there are a few simple strategies you can use to lower your property tax bill.

You probably wish you had paid less, regardless of where you live. So here are some suggestions for lowering your property taxes.

• Property taxes are computed by multiplying the effective tax rate of your municipality by the most current property assessment.
• Check your tax card and compare it to comparable properties in your neighborhood for any differences.
• Before an assessment, don’t build or make modifications to your curbside because these actions may raise your worth.
• Allow the assessor to walk through your home with you during the inspection.
• Look for local and state exemptions, and if that doesn’t work, file a tax appeal to reduce your property tax payment.

There are, however, ways to reduce your property tax payment. Here’s how to do it.

Understand Your Tax Bill

If you think you are overpaying, it is critical to understand how your municipality got at the figure on your statement. Unfortunately, many homeowners pay property taxes without fully comprehending how they are computed. Property taxes are determined using two key figures: the tax rate and the property’s current market value. The frequency with which taxing bodies reset their rates is determined by state legislation; some do it annually, while others do so in smaller increments, such as every five years.

Request For Your Tax Property Card

Few people know that they can request a copy of their property tax cards from the local assessor’s office by going to the town hall. The tax card gives the homeowner access to information the town has accumulated over time about their property. Please note any inconsistencies and bring them up with the tax assessor as you go over this card. The assessor will either fix the problem or re-evaluate the situation. This technique may appear extremely simple, yet mistakes are all too often. If you can locate them, the municipality is responsible for correcting them.

Dispute Your Assessment

The assessed value of your house isn’t always the same as what it’s worth on the open market. You’ll need a real estate appraiser or agent to provide market figures for this. A local assessor will look at comparable house sales, particularly recent sales, to determine the market worth of your home. It will help if you look for a good assessor because they aren’t always correct. By contacting your assessor, you can challenge any local assessment.

Don’t Do Structural Changes

Your tax payment can rise if you make structural improvements to your home or property. Any permanent feature added to your homes, such as a deck, pool, or a large shed, is assumed to raise its value. Before starting construction, homeowners should determine how much a new addition will boost their property tax payment.

Most assessors will grant you a “homestead exemption” if you live in your house. Veterans and senior persons may also be assessed at a lesser rate.

Contact your county or local assessor to find out what reductions are available. If your assessment record does not include them, you should update it. 

Examine Your Neighbor’s Property

As previously stated, the local town hall can provide you with information on your home. However, many people are unaware that other house evaluations in the region are frequently available. Therefore, it’s crucial to look at comparable homes in the region and basic information about the town’s appraisal outcomes. Discrepancies can often be found that can help you save money on your taxes. 

If You Find Your Assessment Wrong? Then Do Appeal For It

As I have stated, there is a lot of disagreement on what defines “market value.” For example, your home may have severe structural or maintenance difficulties or be located next to a factory. The value of a home is affected by a variety of things. If you disagree with your assessment, you have the right to file an appeal at the national and state levels.

 If you decide to appeal, keep in mind that you’ll need to compare your house to others in your neighborhood.

Allow The Assessor To Examine Your Residence

You are under no obligation to let the tax assessor into your home. However, suppose you don’t provide access to the interior. Although, in that case, the assessor will likely presume you’ve made specific modifications, such as adding fittings or making excessive renovations, it may lead to a higher tax bill.

Many towns have a policy that if the owners do not provide full access to the property, the assessor will automatically award the maximum assessed value available for that type of property, regardless of whether it is fair. So, at this point, it’s up to the individual to challenge the assessment with the municipality, which will be difficult unless you provide access to the interior.

Do Look For Exemptions

Religious and government organizations are not the only ones who benefit from exemptions. If you fit into one of the categories, you may be eligible for an exemption. No exemptions can be claimed on other property, including residences, because a homestead property is considered a person’s primary residence. A surviving spouse must also re-file for the exemption if they transfer their primary abode.

However, keep in mind that filing an appeal does not guarantee that your bill will be reduced or not. Instead, it might stay the same or, in rare situations, go up if the reviewer thinks your score is too low. If you’re having difficulties paying or believe the government has grossly overvalued your house, it will behoove you to explore for exemptions or challenge your tax bill.

AUTHOR BIO:

Sarmad Aijaz did his major in Entrepreneurship and Marketing. He has experience working as a Content Writer, Marketing Coordinator, and Digital Marketer, with having international experience in Content Marketing and Market Research. He writes about Texas’s property tax protests, real estate, and home investments.