Homeowner Property Taxes From A to Z

Reducing Property Taxes Homeowner Property Taxes From A to Z

Homeowner Property Taxes Explained

Paying property taxes isn’t a joy for any homeowner. Not many states have low property tax rates, which is why you may be struggling with your tax bills. 

Luckily, there are many ways you can lower your tax bills, and DoNotPay will help you find them!

From getting a property tax exemption to appealing your assessment, this article will tell you all you need to know about reducing your homeowner property taxes.

What Are Property Taxes?

If you are a homeowner or plan to buy real estate property, you need to be ready to pay property taxes. How much you will pay annually depends on the:

  • Tax rate in the city or county you live in
  • Value of your home or the property you want to purchase

Your local government uses the homeowner tax money to invest in different areas, such as:

  • Health care
  • Education
  • Law enforcement
  • Environment preservation
  • Road maintenance
  • Public transportation

By funding various projects and facilities, governments use the property tax money they collect in a way that benefits all citizens. 

How Do Tax Assessors Calculate Your Property Tax?

Different property tax calculators you can find online help you estimate the annual amount of your property tax payment, but you can only get an approximation. You have to understand how tax assessors calculate your property tax.

When you buy a home, a local tax officer conducts a property assessment to determine its market value. They look into everything—from the number of rooms in your home to the assessed values of properties in your neighborhood.

Tax assessors multiply the assessed value of your property by the tax rate of the city or county you reside in. This is how they determine the amount of money you’ll have to pay annually in property taxes.

Tax rates vary from state to state. This is the information many people who plan to purchase property look for. Here are some states in America with the lowest and highest property tax rates:

Highest Tax RateAverage Tax RateLowest Tax RateAverage Tax Rate
New Jersey2.49%Alabama0.41%
New Hampshire2.18%Louisiana 0.52%

Homeowner Property Tax Exemptions

You can pay anywhere between $2,279 and $7,800 in property taxes annually. These aren’t small numbers, which is why homeowners should apply for property tax exemptions to reduce their tax bills. The reason why many don’t do this, though, is because it’s difficult to collect the right information on lowering property taxes.

Some of the property tax relief programs that almost all states offer to homeowners are:

  1. Homestead—You can be exempted from paying your property tax bills partially or totally if you own the property in which you reside. These programs reduce a portion of your home’s market value, which then results in lower tax bills 
  2. Senior citizens—Senior citizen property tax exemptions are usually straightforward. You should be 60+ or 65+ years old to qualify for the relief. Other criteria may also exist, such as the specific number of years you have been a resident of your state 
  3. Military veterans—Most programs that offer tax exemption to military veterans are restricted to disabled veterans whose disability is the result of their service
  4. Disabled persons—Blind or disabled citizens can get tax relief in 23 states in America. While these programs can cut a hefty portion of the home’s assessed value, they usually require the citizens who apply to have a 100% disability

When Should You Appeal Your Tax Assessment?

As a last resort, you can always appeal your property tax assessment. If you believe that your assessment is wrong, you need to collect concrete evidence to appeal it in court.

All cities and counties have specific rules when it comes to property tax appeals.

If you are debating whether to go through with the process, you should do research to determine how valid your estimation is. There is a chance the tax assessor did make a mistake when determining the value of your home, but you need to be able to prove it.

DoNotPay Generates a Guide on Homeowner Property Tax Exemptions for You!

Applying for a tax relief program causes a lot of headaches. You need plenty of information that is usually scattered across various government websites.

DoNotPay can help you get a tax exemption by collecting all the information you need in under a few minutes!

Our AI-powered app gets you a personalized guide that tells you:

  • What property tax exemptions you are eligible for
  • How to apply for the exemptions, including what documentation you need and what the application deadline is

If you want to get this guide on reducing your property taxes, follow this simple process:

  1. Make a DoNotPay account
  2. Locate our Property Tax product
  3. Provide information about yourself and your property

Our App Also Helps You Appeal Your Property Tax Assessment!

If you want to appeal your property tax assessment, signing up for a DoNotPay account should be your first step.

Our guide on reducing property taxes can tell you everything you need to know, including:

  • When you can appeal your assessment
  • Where you should go to appeal it
  • What fees you need to pay
  • When to expect your hearing
  • How to prepare for the court date

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