Property Taxes across the United States have increased by over 25% since 2019, with the average homeowner now paying about $2,826 annually.
Rising home values are the main reason for this increase, leading many homeowners to face higher tax bills. Property taxes are vital for funding essential public services such as education, public safety, and infrastructure.
However, you can legally reduce your property tax burden in several ways. Here are 12 actionable strategies to help you lower your property taxes in 2025.
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1. Challenge Your Property Taxes Assessment
If you believe your property’s assessment is too high, challenging it is one of the most straightforward ways to lower your taxes. The value of your home directly impacts your tax rate, and sometimes mistakes are made during the assessment process.
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What to Do: Carefully review your property’s assessment notice for errors such as incorrect square footage, missing features, or rooms that don’t exist (e.g., an extra bathroom listed on the assessment). These errors could cause your property to be valued higher than it is.
Action: Sometimes, you must bring an independent apprassessor’s support of your claim. Occasionally, there could be mistakes that one could challenge in the local assessor’s office. It is a minor price in the grand picture, saving huge taxes.
2. Take Advantage of Homestead Exemptions
Depending on the home where a person lives, a homestead exemption can reduce the home’s taxable value and, therefore, the property taxes owed. It is applicable in almost every state, but the rules and benefits from it differ.
What to Do: Check with your local tax office to see if your state offers a homestead exemption and determine the eligibility requirements. For example, in Florida, you may be eligible for an exemption that reduces your home’s taxable value by up to $50,000.
Action: To avoid hanging up on deadlines, states usually have strict dates when you should Register for the homestead exemption; therefore, keep your eye on dates.
3. Explore Senior Tax Break (Calculate Your Property Tax)
Several states have offered property tax relief programs for homeowners who are 65 and above. Some of these states even provide property tax freeze programs, which means that your property taxes, regardless of how much value your home appreciates, keep the same level.
What to Do: If you are a senior citizen, browse the property tax relief homes in your locality. In some cases, taxes are paid by the seniors only on a specific part of the asset’s value, so they reduce their overall tax burden.
Action: Visiting the local tax assessor’s office will tell you whether you qualify and how to apply for any senior property tax benefits that will apply to you.
4. Compare Your Property to Similar Homes in Your Area
If your property is valued higher than similar homes nearby, you may pay more than your fair share in property taxes. Comparing your home with others (comps) can provide evidence to contest your property tax assessment.
What to Do: Look at the tax assessments of nearby homes similar to yours in size, age, and condition. If a comparable home is valued much lower, it could be a valid reason to challenge your valuation.
Action: Gather information on the sale prices or assessed values of nearby homes and present this evidence during your appeal.
5. Time Your Home Improvements Carefully
Some homeowners consider adding a new kitchen or constructing an additional room an insatiable desire, but with such home improvements comes the danger of an increase in property tax. It is thus imperative to undertake such improvements strategically.
What to Do: Schedule extensive renovations for the property following the assessment so that the assessor does not raise the home’s value following recently completed revisions.
Action: If you’re planning major renovations, try to schedule them after the assessment. Some energy-efficient upgrades may offer tax incentives to offset any increase in your tax bill.
6. Scan through different Property Taxes Freeze Programs.
A few states have property tax freeze programs that let you keep your taxes on the same level even if your home’s worth increases. These programs are generally offered to seniors, disabled homeowners, and other qualified persons.
What to Do: Investigate whether your state has property tax freeze programs and the eligibility criteria, which usually include age, income, or disability.
Action: Notify your state for any information about the program you think you are eligible for. Homeowners, in particular, can see long-term gains in settling for tax freezes, as it gives a specific relief in the billing required for taxes, especially for property owners.
7. Review Your Property Taxes Bill Annually
Every year, it is imperative to check the property tax bill of your premises closely since this bill contains all the information that may impact the size of your tax, including the size of your property; it’s the different factors that make up the property, and the estimated worth of the house.
What to Do: It is always best to question your tax property’s returns for statements such as misstated square footage, having more rooms than necessary, or other aspects that could increase the worth of your real estate.
Action: If you spot a discrepancy, contact your local assessor to request corrections. Fixing small mistakes can lower your property tax bill.
8. Consider Property Taxes When Buying a Home
When buying a new home, consider the property tax rate in that area. Property tax rates can vary significantly between states and even neighboring cities.
What to Do: Research the property tax rates in areas you are considering moving to. For instance, Hawaii has one of the lowest property tax rates in the U.S., while New Jersey has one of the highest.
Action: A home buyer should include the cost of property taxes in their calculations; relocating to an area with lower property taxes could mean cost savings.
9. Document Property Condition Issues
Capture Record Any Noteworthy Problems Affecting Your Property, like Roof Replacement Foundation Movements or Water Intrusion- Certain such problems may eventually affect market value while a home is held.
What to Do: Take photographs and record damages, including mold assessors or structural issues, because the property reduces the resale value during an appraisal later.
Action: Submit your documentation to the local tax assessor’s office as evidence of your property’s condition. It may result in a lower assessment and, consequently, lower taxes.
10. Know the Property Assessment Cycle
Some areas assess property values every year, while others may do it every few years. Knowing when your local jurisdiction will reassess properties can help you plan.
What to Do: Find out when your local property assessments occur. It will allow you to time your renovations and appeals for maximum benefit.
Action: If you know your home is due for reassessment soon, it might be better to wait until then to renovate.
11. Apply for Income-Based Tax Relief
Some states offer property tax relief for low-income homeowners. If your assessor’s household income is below a certain threshold, you may qualify for a reduction in your property taxes.
What to Do: Check with your local tax assessor’s office to see if income-based tax relief is available in your area.
Action: If you meet the income qualifications, apply for the income-based property you’d like. These programs can help make homeownership more affordable.
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12. Hire a Property Tax Consultant
Hiring a property tax consultant could be wise if your property taxes are incredibly high or you’re having trouble navigating the access. These professionals understand local tax laws and can find savings opportunities you’ve missed.
What Must Be Done: When everything has failed to minimize property taxes, go to a tax professional. They might catch an exemption or an appeal that has not been actioned.
Step: Search for an accredited property tax evaluation consultant or attorney specializing in reductions and appeals.
Conclusion
It need not be made any more complex than it already is. You can cut taxes on your property and lower the pennies you pull out each time by actively disputing false evaluations and taking advantage of the tax relief systems available for each locality. Each locality has its rules for local taxes; therefore, knowing your available options is essential.
These 12 methods will help you avoid overpaying property taxes in 2025. They will keep you risk-free, well-wish, and motivated through various options to minimize your tax.
