Property Tax Protest: Tips for Lowering Your Homeownership Expenses
Property taxes are one of the most significant expenses for homeowners, and the issue of fee creep is prevalent in this area. Rising home values and changes in local property tax rates can result in substantial increases in property tax bills. Here are some tips on how to manage and reduce your property tax bill.
UNDERSTAND YOUR PROPERTY TAX BILL
Your property tax bill is typically broken down into two parts: the assessed value of your property and the local tax rate. The assessed value is determined by the county appraiser's office and is based on the estimated value of your property. The local tax rate is set by your local government, and the amount you owe is calculated by multiplying your property's assessed value by the local tax rate.
PROTEST YOUR PROPERTY TAX BILL
You have the right to protest your property tax bill if you believe that your assessed value is too high. Most counties in Texas allow for online protests, making the process easier than ever. You'll need to provide evidence to support your claim, such as recent home sales in your area or information on comparable homes that sold for less than your assessed value. If you're successful in your protest, you could save hundreds or even thousands of dollars in property taxes.
TAKE ADVANTAGE OF PROPERTY TAX EXEMPTIONS
There are various property tax exemptions available to homeowners in Texas that can help reduce your property tax bill. For example, if you're a senior citizen, disabled, or a veteran, you may be eligible for a property tax exemption. You can also qualify for an exemption if you make energy-efficient upgrades to your home, such as installing solar panels or a geothermal heating system.
CONSIDER AN ESCROW ACCOUNT
Many mortgage lenders require homeowners to set up an escrow account to pay their property taxes and homeowner's insurance. If your property taxes are increasing significantly, you may be able to request that your lender adjust your monthly payment to reflect the new tax amount. This can help you spread out the cost of the increase over the course of the year, rather than paying a lump sum all at once.
FINAL THOUGHTS
Managing property taxes can be challenging, but there are ways to reduce your bill. Understanding your property tax bill, protesting your assessed value, taking advantage of exemptions, and considering an escrow account can all help you manage your property taxes effectively.
If you're struggling to manage your property taxes or have questions about your specific situation. Let's chat.
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.