Property taxes can be a significant expense for homeowners, and finding ways to save on them can be a smart financial move. There are several strategies for saving on your property taxes in 2023.
Challenge Your Property Assessment
Your property tax bill is based on the assessed value of your property, which is determined by your local government. If you believe your property has been overvalued, you can challenge the assessment. Check with your local government to see what the process is for challenging an assessment and what the deadline is. It’s important to act quickly, as there may be a limited window of time to file an appeal – and we can help!
Look for Exemptions and Deductions
Many local governments offer exemptions and deductions for certain types of properties or homeowners. For example, you may be eligible for a homestead exemption if you live in your home as your primary residence. There may also be exemptions for veterans, seniors, and people with disabilities. Are you taking full advantage of these deductions? A tax professional at Ray Tax Group may be able to help you!
Take Advantage of Tax Credits
Some states offer tax credits to homeowners who make certain improvements to their homes, such as installing energy-efficient windows or solar panels. Check with your state government to see what tax credits are available and whether you qualify.
Pay Your Taxes on Time
This might seem like a no-brainer, but it’s true! Many local governments offer discounts to homeowners who pay their property taxes early or on time. The discount may be a percentage off the total bill or a flat fee. Check with your local government to see if there are any discounts available for early payment.
Consider a Property Tax Loan
If you’re struggling to pay your property taxes, a property tax loan may be an option. These loans allow you to borrow money to pay your property taxes and then repay the loan over time. While property tax loans can be a good short-term solution, they come with high interest rates and fees, so it’s important to carefully consider whether this is the right option for you.
Keep Records of Home Improvements
Making improvements to your home can increase its value and, in turn, your property taxes. However, if you keep records of the improvements you make, you may be able to offset some of the increased value. When you sell your home, you can subtract the cost of the improvements from the sale price to determine your taxable gain. This can lower your capital gains tax liability.
Look for Errors on Your Tax Bill
Mistakes happen, and sometimes they can result in a higher property tax bill than you should be paying. Review your tax bill carefully to make sure there are no errors, such as incorrect property descriptions, square footage, or assessment values. If you find an error, contact your local government immediately to have it corrected.
Consider a Property Tax Appeal Service
If you’re having trouble challenging your property assessment or finding ways to save on your property taxes, consider working with a property tax appeal service. These companies specialize in helping homeowners reduce their property tax bills and can handle the appeals process for you.
There are many ways to save on your property taxes in 2023. Whether you challenge your assessment, take advantage of tax credits, or look for errors on your tax bill, taking steps to lower your property tax bill can help you save money and improve your financial situation. By carefully considering your options and working with professionals, you can find the right strategy for your needs and keep more money in your pocket.
Get ahead of the tax rush! Talk to a member of our team today to learn about the steps you can already take this year to save money on your property taxes and avoid the frenzy next spring!