Tips For Reducing Real Estate Taxes In 2023
It’s no secret that real estate taxes can be a significant expense for homeowners. In 2023, the average homeowner will pay more than $2,000 in real estate taxes. But there are ways you can reduce your real estate taxes and keep more of your hard-earned money in your pocket. Here are some tips to help you get started.
Know the Real Estate Tax Rate
The first step in reducing your real estate taxes is to know the real estate tax rate in your area. Different cities and counties have different rates. The rate is typically set by the local government, so it’s important to research the tax rate in your area and understand how it works. Once you know the rate, you can start looking for ways to reduce your taxes.
Know Your Home Value
In addition to understanding the real estate tax rate, it’s also important to know the value of your home. Real estate taxes are based on the value of your home, so if you don’t know the value of your home, you won’t be able to accurately calculate your real estate taxes. It’s important to research the market value of your home and make sure it’s accurate.
Stay Up-to-Date on Tax Changes
Real estate taxes can change from year to year, so it’s important to stay up-to-date on any changes that may affect your taxes. Many local governments will send out notices when tax rates change, so make sure you’re paying attention to any changes that could affect your taxes. Additionally, it’s important to stay informed of any new laws or regulations that could impact your taxes.
Take Advantage of Tax Breaks and Exemptions
Many local governments offer tax breaks and exemptions to homeowners, so it’s important to take advantage of these if you qualify. For example, some states offer tax breaks for seniors, veterans, and disabled homeowners. Additionally, some states offer property tax exemptions for certain types of homes, such as historic homes or energy-efficient homes. Research the tax breaks and exemptions that are available in your area and take advantage of them if you qualify.
Challenge Your Property Assessment
Your real estate taxes are based on the assessed value of your property. If you think your property has been over-assessed, you can challenge the assessment and try to get the value reduced. This can significantly reduce your real estate taxes. To challenge your assessment, you’ll need to gather evidence to prove that the assessment is too high. This could include recent appraisals or sales data for similar properties. Once you have the evidence, you can submit it to your local tax assessor to get the assessment reduced.
Appeal Your Tax Bill
If you’ve taken all the steps to reduce your real estate taxes but still feel like you’re paying too much, you can appeal your tax bill. Most local governments have an appeals process that you can use to dispute your tax bill. You’ll need to gather evidence to prove that your taxes are too high and submit it to the appeals board. The appeals board will review the evidence and make a decision on whether or not to reduce your taxes.
Hire a Professional
If you don’t feel comfortable handling the process on your own, you can always hire a professional to help you. There are tax consultants and real estate lawyers who specialize in reducing real estate taxes. They can help you understand the process and handle the paperwork. However, they may charge a fee for their services, so it’s important to weigh the cost-benefit before hiring a professional.
Conclusion
Real estate taxes can be a significant expense for homeowners. But by understanding the tax rate, knowing your home value, and taking advantage of tax breaks and exemptions, you can significantly reduce your taxes and keep more of your hard-earned money in your pocket. If you’re still finding it difficult to reduce your taxes, you may want to consider hiring a professional to help you with the process.
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