Another year has come and gone and property taxes are once again due. I urge you to look closely at your property tax bills, as they often contain errors. For example, this year, our tax bill was $512 MORE than it was supposed to be due to a clerical error in our local tax office omitting a basic exemption on our bill.
Many States and Counties offer huge discounts that can be applied to your Property Tax Bill. The homestead exemption is one of the more common exemptions that you or your family may qualify for:
1. Homestead Exemption– this exemption can be based on several qualifying factors:
- Age (65 and over, generally)
- Disability or Handicaps
- Title Basis- fee simple or partial title to the house or life estate (In basic terms- if you’ve owned your home for the year and Lived IN it, as opposed to owning a property and renting it out
2. Residential Energy Efficient Property Credit
- Some areas give a credit of 30% of your costs for qualifying properties (those that use solar electricity, solar water heating, and fuel cell property).
- Solar Property Tax Exemptions by State
3. Veterans Discounts
4. Widow & Widower’s Exemption– if your spouse passed, you may qualify for an exemption, depending on your state.
5. Disability Exemption for Ex-Service Member – ex-service members often get discounts of up to 10%
6. School Tax Relief – refundable property tax credit
Although each State is different, nearly ALL states offer exemptions based on varying factors. Generally speaking, the homestead exemption is based on a fixed monetary amount, such as the first $50,000 of the property’s assessed value. Which means, that a home valued at $150,000 would be taxed only on $100,000, which results in quite a substantial savings.
How do I get it?
Some states require that you fill out an application and “prove” that you meet the guidelines. In our case, they required a utility bill to “prove” we’d been living in our home. Simply go to your local tax office (usually at the City Hall or Town Hall) and request information on property tax exemptions, particularly , the homestead exemption.
In some cases, if you’ve been a resident for several years and the town has neglected to apply the discount, you may be able to get them to give you retroactive discounts, thereby giving you a tax credit or property tax refund.
Wouldn’t it be great to start off the year with an extra chunk of change in your pocket for 10 minutes of your time?
See Also: How to Contest your Property Taxes & Win
Tax Exemption Link By State:please feel free to add your state using the comment boxes below
How to Find your state if it’s not listed:
Google the following:(Your State Name) Property Tax Exemptions