Property Tax Exemptions & Abatements: Are You Missing Out on Savings?

While appealing an unfair assessment is a powerful tool, it's not the only way to reduce your property tax burden. States and local jurisdictions offer a variety of tax relief programs in the form of exemptions and abatements.

These programs are designed to assist certain homeowners by reducing their property's assessed value or providing a direct credit on their tax bill. Are you taking advantage of all the savings you're entitled to?

Common Types of Property Tax Exemptions

Tax relief programs vary significantly by state and county, but here are some of the most common types you should investigate:

• Homestead Exemption: This is the most common program. It can reduce the assessed value of your primary residence, saving you hundreds of dollars annually. You typically need to apply once when you purchase a new home.
• Senior Citizen Exemptions: Many jurisdictions offer significant tax relief for seniors, often based on age and income thresholds. This can range from a "freeze" on your assessed value to a substantial reduction in your tax bill.
• Exemptions for Veterans: Veterans, especially those with service-connected disabilities, are often eligible for partial or full property tax exemptions. The specific requirements and benefit amounts vary widely.
• Exemptions for People with Disabilities: Homeowners with qualifying disabilities may be eligible for tax reductions.
• Home Improvement Exemptions: Some states offer temporary exemptions on the value added by specific home improvements, preventing your taxes from rising immediately after a renovation.

How to Find and Apply for Exemptions

1. Visit Your Local Assessor's Website: This is the best place to start. Look for a "Deductions," "Exemptions," or "Tax Relief" section.
2. Contact Your Assessor's Office: A quick phone call can provide clarity on which programs you might be eligible for and how to apply.
3. Be Mindful of Deadlines: Just like appeals, exemption applications have strict deadlines. Don't wait to apply.

Taking a few minutes to research available exemptions could lead to significant, recurring savings on your property tax bills.

Disclaimer: This article provides general information and is not intended as legal or financial advice. Tax laws and programs vary by jurisdiction. Consult with a qualified professional for advice tailored to your situation.