In just a few weeks, millions of Americans will receive a rude awakening in their mailboxes as property-tax assessments soar to new heights. And if you think the pandemic was tough, wait until you see what local governments have in store for homeowners this year. According to experts, property taxes have skyrocketed by more than 8% in recent years, with the median bill now topping $2,795 per homeowner.
The reason? Local municipalities need the money to fund public schools and other services. And that, folks, gets financed with (wait for it), yes: taxes. But know that doesn’t make it any easier for homeowners struggling to make ends meet in an already tough economy. Get ready to feel the pinch as property taxes hit an all-time high, leaving homeowners scrambling to pay the bill. Friends, the real estate situation is complicated for homeowners, and you can have a couple tricks to lower your bill this year.
Is It Any Possible to Lower Your Tax Bill?
Property taxes and real estate taxes are on the rise across the country, leaving many homeowners with higher bills than expected. But did you know that you may be able to lower your property tax bill by reviewing your assessment and checking for errors?
According to experts, mistakes in square footage, lot size, and amenities can significantly increase your property’s overall assessment. I mean, you should report in your tax form exactly what you have. For example, if you report to have a larger house of what you actually own, or that it has a larger pool that the one in the backyard, well, the municipality or city will claim and retrieve more from your bank account.
To lower your bill, consider also researching recent sales of similar properties in your neighborhood. If you think your assessed value is too high, consider getting an independent value assessment from a licensed real estate professional or appraiser. If the independent assessments show your property value is lower than the assessed value, request a meeting with the local tax assessor and ask for your property to be reassessed. But be sure to identify any issues with your property that could lower its value, such as water damage.
A quick tip from a tricky guy: when speaking to the assessor, don’t mention taxes! Instead, focus on the value of your property. Trust me, it will help you a lot on what you pay.
How to Take Advantage of Tax Exemptions
Take a look at the tax exemptions that apply in your city or municipality. They vary from state to state, and from one urban center to another. For example, if you’re a disabled veteran or the spouse of a deployed military member, you may be eligible for relief in certain counties.
Seniors can also take advantage of tax-relief programs in many municipalities. And there are even free services available to help you apply for these programs, like AARP’s Property Tax-Aide program.
Do your own research. For example, in Texas, here are the tax exemptions that apply. There are the ones that apply in the state of New York. And the state of Michigan also has some tax alleviations for qualifying homeowners. These are just illustrations, but there are similar policies along the country.