No matter where you own a home, you cannot escape the reality of property taxes. And as home values rise, so, too, do property tax rates. "Data shows that last year's property tax bills increased by as much as 30% in some places," said Kiplinger.
There is no way to totally sidestep property taxes — "even after you pay your mortgage, the property tax bills keep coming until you no longer own a home," said Investopedia. Still, there are steps you can take to make your property tax bills a bit more manageable.
1. Check your tax card for any mistakes
One course of action to take is to "request a copy of your property's tax card, which shows the lot size, square footage, room sizes and other features of your home," all of which is "data your tax assessor uses to calculate your property tax," said Experian.
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You can get this card if "you go down to the town or city hall and request a copy" from the local assessor's office," said Investopedia, and "many of these are now online," too.
Once you have the card in hand, look it over "for errors and inaccuracies that might be inflating your tax bill," said Experian. "For example, if your tax card lists four bedrooms but your home only has three, your home's assessed value might be off."
While this might seem like a shot in the dark, "mistakes are common," said Investopedia, and "if you find them, the township or city must correct them."
2. Look into exemptions and relief options
Property tax exemptions and credits also "can lower your property's assessed value," in turn lowering your tax bill, said Experian. "Many cities and counties offer exemptions for senior citizens, disabled people and veterans," and "some areas provide a credit when you use your home as a primary residence or for the operation of a nonprofit organization."
Meanwhile, "property tax relief programs may offer qualifying individuals property tax credits, deferrals or rebates to manage their property tax obligations," said Kiplinger. You might also look into property tax freeze programs, which "can offer relief for older adults or those with disabilities facing financial hardship" by preventing "increases in property tax bills."
3. Keep major improvements to a minimum
If you are concerned about your property tax bill inching up, avoid indulging in too many home improvement projects, as "an increase in your home's value will lead to a rise in property taxes," said Quicken Loans. For instance, "when you complete certain home improvement projects, like boosting curb appeal, adding a pool, or revamping a kitchen, the value of your home is sure to rise," in turn bringing up your property taxes.
Not all home improvement projects will necessarily push up your property tax bill, however. Things like "painting your house, landscaping, and other minor upgrades that do not require permits are unlikely to significantly alter property taxes," said Quicken Loans. Still, it is a balancing act — "your home is an investment, so you still want to build equity and increase your property value."
4. Consider an appeal
While "you cannot argue against the tax rate, you could file an appeal with the assessor's office to change the assessed value of your home," said Quicken Loans. A reduced assessment value could be "enough to lower your tax bill," though an appeal "does not guarantee that your bill will drop," said Investopedia. Keep in mind there is the possibility that "it may remain the same or, in rare cases, may increase if the reviewer feels your assessment is too low."
To make an appeal, you will "need to provide details about the condition of your property for review," and then "a board will determine whether you win the appeal to lower the tax assessment on your property," said Quicken Loans.
Making an appeal typically requires that you act "promptly" and "generally requires the help of a lawyer," which will involve a fee, said Investopedia.
