How to lower property tax on your property

6 Steps to Lower Your Property Taxes

If you feel that you’re paying too much in property taxes, or you’re not sure why tax rates have increased recently, First, you’ll want to understand property tax laws in your state and local area. Then, you can take the following steps to potentially lower your property taxes. 

  1. Ask for Your Property Tax Card
  2. Compare Neighboring Home Values
  3. Challenge Your Home Assessment
  4. Avoid Repairs and Remodeling
  5. Get a Second Opinion
  6. See If You Qualify for Tax Exemptions

Ask for Your Property Tax Card

Sometimes, errors or problems pop up in a property tax evaluation. For instance, something could be incorrectly noted in your property record, resulting in discrepancies. That said, one of the simplest ways to determine any errors in your tax evaluation is by requesting your property tax card at the local assessor’s office. 

Your property tax card includes information about the size of your lot, the square footage of the home and each room, and the types of fixtures within the home. 

Compare Neighboring Home Values

Just as you can ask for your property tax information, you can also request other property assessments in your location. You can generally get this information at your local town hall. So, if you’re wondering how your home compares to others in the neighborhood, you can request this information to learn more.

You may find that you have a similar property but find that they’re valued differently. As such, you can use other tax evaluations to determine inconsistencies and potentially lower your property taxes. 

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Challenge Your Home Assessment

If you notice changes in the area, you can challenge your assessment. Unfortunately, you can’t change your tax rate, which the government sets. However, you could intervene if your home is valued incorrectly. 

Tax assessors look at comparable properties to establish your home’s value. However, this could lead to inconsistencies regarding the value of your property. Ultimately, you can appeal your assessment if you think your property is overestimated. 

Avoid Updating and Remodeling

Updating or remodeling your home can raise your property taxes, as they raise the property’s value. However, when it’s assessed after a remodel, any upgrades will be considered while determining the value that taxes are based on. 

While upgrades are generally good for homes and rentals, they can raise your tax bill. Many homeowners wait to make significant changes to the property until after a tax assessor evaluates the property. 

Get a Second Opinion

If you disagree with the value of your property determined by a tax assessor, you can hire an independent appraiser. Although it’ll cost you money to get a second opinion,

Remember that getting a second opinion won’t automatically lower your property taxes. However, it can help if you plan to dispute the value of your home determined by a tax assessor. 

See If You Qualify for Tax Exemptions

tax-exemptions

One of the easiest ways to lower your property taxes is by seeing if you qualify for any tax exemptions. Many state and local governments give tax exemptions for several reasons. For instance, many seniors, veterans, or people with disabilities qualify for tax discounts. 

To determine what exemptions you qualify for, look up your local tax laws. If you don’t qualify for any of the above discounts, others may be applicable. 

What May Affect Your Property Taxes?

Several things can affect your property taxes, including your home’s value, the city’s tax rate, and local laws.

  • Moving to a New Area- Tax rates vary by state, county, and city. So your taxes will likely differ even if you move to a comparable property in another location. 
  • Adding Onto Your Home- Adding to your home or making significant improvements increases the value of your property, increasing your taxes. 
  • Increase in Home Sales Near You- Property taxes may increase with more neighborhood sales. More sales indicate that the neighborhood and properties are more desirable, which generally calls for higher taxes. 
  • Neighborhood Improvements- Making a neighborhood more desirable can increase home values, increasing property taxes in turn. 
  • Government Policies- Property taxes help fund several local initiatives, including schools, police and fire departments, and more. So when more funds are needed to maintain them, taxes increase. 

How Can Property Management Help?

The first step to potentially lowering your property taxes is educating yourself on how they’re determined. Then, you can take the necessary steps to reevaluate your home or appeal your tax bill. 

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If you want to stay up on your property income and expenses, property management can help. While you search for ways to lower your property taxes, we’re right by your side to help with documentation and record-keeping for each of your properties. 

Josmo Group offers comprehensive rental management services to landlords in westlands,kileleshwa,lavington ,kilimani,upperhill,mombasa road & CBD

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