How To Lower Your Property Taxes

Property taxes can place a significant financial strain on homeowners and real estate investors alike. Each year, tax bills may increase, even if your property value stays the same. Fortunately, there are several legal and effective ways to reduce what you owe and they often begin with understanding how the system works.

This article explores key steps you can take to lower your property taxes and keep more money in your pocket.

Understand the Basics of Property Tax Calculation

Property taxes are typically based on two things:

  • The assessed value of your property

  • The local tax rate set by city or county authorities

The assessed value is supposed to reflect market value, but it’s not always accurate. If the assessor overvalues your home, you could end up paying more than your fair share.


1. Review Your Property Tax Assessment Notice

Each year, your local tax authority sends out an assessment notice. It’s important to check it carefully. Look for:

  • Errors in square footage or lot size

  • Incorrect number of rooms or features

  • Overvaluation compared to nearby properties

Even small mistakes can lead to higher taxes. If something doesn’t seem right, it’s worth investigating.

2. File a Formal Appeal

If you believe your property is over-assessed, you can file an appeal. This may involve:

  • Submitting recent home appraisals

  • Providing evidence of lower comparable sales

  • Correcting inaccurate property records

Many property owners skip this step, but appealing your assessment could save hundreds or thousands of dollars annually.

3. Explore Exemptions and Credits

Most counties and municipalities offer tax relief programs for eligible property owners. Common exemptions include:

  • Homestead exemption (for primary residences)

  • Senior citizen discounts

  • Veterans or disability exemptions

These exemptions reduce the taxable portion of your property’s value. Check with your local tax office or a professional to see what’s available in your area.

4. Avoid Major Improvements Before Reassessment

Upgrades such as new decks, garages, or room additions may increase your home’s assessed value. If your area is due for reassessment, it may be wise to hold off on large renovations that can trigger higher taxes.

5. Check for Property Record Mistakes

It’s surprisingly common for tax records to contain outdated or incorrect information. You might be charged for:

  • Features your property doesn’t have

  • A finished basement that doesn’t exist

  • A larger lot than what’s actually owned

Correcting these errors can lead to a reduction in your tax bill.

6. Consider Getting a Professional Appraisal

If you think your property is overvalued, a third-party appraisal may be helpful. It offers an unbiased estimate of value and can be used to support an appeal. This approach is especially useful in changing markets or when your home has features that don’t match nearby properties.

7. Work with a Tax Expert

Tax professionals understand the appeal process, available exemptions, and how to identify savings opportunities that others might miss. They can also handle paperwork and negotiations, saving you time and stress.

Final Thoughts

Lowering your property taxes is possible  and in many cases, it's just a matter of knowing your rights and taking timely action. Don’t let over-assessments or missed exemptions drain your finances. With the right steps, you can minimize your tax bill and protect your investments.

To learn how you can reduce your property taxes and optimize your finances, visit zuazocpa.com or speak with a trusted advisor today.