How to Lower Your Property Taxes

Save money by lowering your property taxes.

Up to 60 percent of all houses in America are overvalued for property tax purposes. That means you could be paying more taxes than you should. A tax assessor decides how much your house it worth, multiplies that number by the local real estate tax rate and the result is your property tax. Many individuals may have received property tax bills that are incorrect. Getting your tax bill reduced is fairly easy to do.

Instructions

1. See what your neighbors are paying in taxes for homes like yours. This information is public and is available either online or at your assessor's office.

2. Look for errors in how your house is described. Check on square footage, lot size, age of your house and its condition. If there are glaring errors, document them.

3. Check on recent sales of property like yours in your area. A real estate agent or your local assessor can help you with this.

4. Make note of local conditions that will negatively impact your house's value, such as active railroad tracks right across the street or a neon sign that shines directly into your living room.

5. Take a picture of your house. Make sure it reflects all the damages and the repairs. Take pictures of other houses that are comparable to yours.

6. Include a copy of your purchase contract in your appeal if you have been in your house for a short time.

7. Check for special exemptions that may be available if you are a senior citizen, disabled, a veteran or have low income. All of these will serve to reduce your taxes.

8. Schedule an evaluation of your home's property tax with the assessor's office in your municipality. If you are not satisfied with the results of this evaluation, the assessor will provide you with information about how to appeal.

Tips & Warnings

• Less than half of all homeowners with incorrect real estate bills go to the trouble of contesting them. Many of them who do see a reduction in their bills, and it is sometimes a large reduction.

References

• Business Week: How to Reduce Your Property Taxes
• ABC News: Think Your Property Tax Bill Is Too High? Here's What You Can Do