Property taxes have risen nationwide, creating challenges for many homeowners.
Data show that last year’s property tax bills increased by as much as 30 percent in some places. Unfortunately, if you own a home, you cannot avoid property taxes altogether without risking penalties. However, some strategies and programs can lower your property tax bills and ease your financial burden.
Exemptions are a common method for lowering property taxes. To ensure compliance and maximum benefits, research specific requirements and application procedures in your state—you can contact your local revenue department.
- Homestead exemption: This reduces the assessed value of a primary residence and results in lower property taxes. Many states offer a homestead exemption, but eligibility criteria vary.
- “Senior citizen” exemption: Many states offer exemptions, usually for those 65 or older, to help alleviate the financial burden on retirees living on fixed incomes. These exemptions typically have age and income requirements.
- Veterans exemption: U.S. military veterans may be eligible for exemptions that reduce or exempt bills. In some cases, spouses and dependents of deceased veterans may also qualify for these benefits.
- Disability exemption: Individuals with disabilities may be eligible for exemptions. These can vary in scope and eligibility criteria but often provide relief based on the degree of disability and income.
But beware of property tax relief scams and unsolicited offers. Scammers may ask for personal information and use high-pressure tactics, promising to reduce or eliminate your property taxes for a fee.
AARP offers a free resource, Property Tax-Aide, to help older adult homeowners find legitimate relief programs. You can find it at https://ptaconsumers.aarpfoundation.org/about-property-tax-aide.
Property tax freeze programs can offer relief for retirees facing financial hardship. The programs prevent increases in property tax bills.
Also, while not a freeze program, some states have property tax caps limiting the amount property taxes can increase in a specified period. However, terms and conditions and cap types vary.
Consider appealing your property’s assessed value. Assessments can sometimes be inaccurate or outdated, resulting in higher-than-necessary tax burdens. By gathering evidence on recent comparable sales or property conditions, you can make a case for a lower assessed value and, possibly, a lower tax bill. Check the local rules, including deadlines, for appealing your bill.
