Property taxes are among the hidden costs of owning a home or any form of real estate. These taxes can be a big challenge, especially to aged homeowners. Property taxes are paid based on value of the property, and in many cases, the money collected is plowed back into community projects. Below are tricks that can help lower your property taxes:-
Lower Your Tax Bills
Take time to find how the amount you pay in property taxes is arrived at. One way to lower your property tax is by challenging your home’s assessed value since property tax is primarily based on the value of the property. States have different procedures to arrive at the value of a property. To get your tax lowered, you must prove that the market value assigned to your property is either unfair or inaccurate.
Your property tax is made up of two parts. The assessed value of the property and actual value paid out. You may call in a real estate appraiser in case your property is not valued correctly.
Check if you qualify for tax discount
Most home assessors offer homestead exemption for living in the house. Veterans and aged citizens may also qualify for tax discounts. Some type of property like those used for agricultural purposes, may qualify for tax discounts. The state decides on the amount of deductions, and the property holder has to apply for them.
Get an Outside Appraiser
In case you feel your property has not been valued well, you may need to bring in another professional opinion. Very strict and rigid rules guide assessors and regulations; hence room for judgment may be limited. Another certified property assessor may help convince the right people that your house was overvalued.
Shift to a Less Expensive Area
The rate of property tax depends on the location of the property. These rates differ from one state to another. In case you stay in at a place where property laws are very high, you may consider buying a property in another state to pay less property tax.
Seek a Tax Abatement
You can apply for tax abatement if this facility is available in your state. Under tax abatement, the authorities forgive all your property taxes. Application and assessment or eligibility differ in different states. You need to file your income details to prove eligibility. You may qualify for tax abatement based on income, age, disability, or personal status. For instance, veterans and older homeowners always qualify for reductions in property tax.
Get Rid of Outbuildings
Property assessment for the sake of taxation takes account of other structures on the property like greenhouses and storage sheds. However, some states only tax permanent structures or those above some sizes. You may consider removing structures that are not needed so much and which are included in property tax.
Look Into a Hardship Program
Some counties offer hardship programs for property tax. These programs are meant for individuals who can’t pay their delinquent property due to hard financial situations. Eligibility and rules of application differ from one state to the other.
Some states have special programs to cater to special groups of people. This includes offering low-interest loans to the elderly and those who live under low income.
Apply for a Loan
You can secure a loan from a bank or a property tax lender. These loans are offered to clear off your taxes specifically. Before applying for the loan, take time, shop around for the best lender, and charge the fees. Look out for the lender’s history and license status.
Look for Exemptions
You may qualify for various tax exemptions offered to various types of people. Groups that qualify for tax exemptions include the old, veterans, people with disabilities, and property used for agriculture. Different states have different qualifications for tax exemptions.