Property taxes are one of the largest recurring costs of homeownership, and they only tend to go up over time. But many homeowners pay more than they should — either because they’re missing exemptions they qualify for, or because their home’s assessed value is higher than it should be.
You can’t eliminate property taxes, but you may be able to reduce them significantly. Here’s how.
Understand How Property Taxes Are Calculated
Property taxes are calculated by multiplying your home’s assessed value by the local tax rate (called the mill rate or millage rate). The assessed value is set by your local assessor — it may be equal to market value or a percentage of it, depending on your state.
Two ways to lower your bill:
- Reduce the assessed value — by appealing the assessment if you believe it’s too high
- Claim exemptions — which reduce the taxable portion of your home’s value
Both paths are legitimate, legal, and available to many homeowners who never use them.
Claim Every Exemption You Qualify For
Exemptions reduce the taxable value of your home — often by thousands of dollars — which directly lowers your tax bill. Common exemptions:
Homestead Exemption
Most states offer a homestead exemption for your primary residence. If you own and live in the home, you likely qualify. The exemption typically reduces assessed value by a flat amount (e.g., $25,000–$50,000) or a percentage.
This is often the most valuable exemption available — and it requires a simple application with your local assessor’s office. Many new homeowners don’t know it exists or forget to apply.
Senior Exemptions
Homeowners 65 and older often qualify for additional property tax reductions or freezes. Some states freeze assessed value for seniors so taxes don’t increase even when home values rise. Others offer percentage reductions or income-based programs. Eligibility varies by state and county.
Disability Exemptions
Homeowners with qualifying disabilities may qualify for additional exemptions. Veterans with service-connected disabilities often have access to significant property tax relief — in some states, 100% disabled veterans pay no property tax at all.
Other Common Exemptions
- Agricultural exemptions (if you use part of the property for farming)
- Surviving spouse exemptions
- Historic property exemptions
- Low-income homeowner programs
- Circuit breaker programs (caps taxes as a percentage of income)
Search for “[your county] property tax exemptions” to find what’s available locally. The assessor’s website usually lists all available programs.
Check Your Property’s Assessment
Your assessed value should reflect a reasonable estimate of your home’s market value (or a set percentage of it, depending on your state). Assessors update values periodically — often annually or every few years — and mistakes happen.
Request your property record card from the assessor’s office. It lists the details used to calculate your assessment: square footage, number of bedrooms and bathrooms, lot size, age, and condition. Check for errors like:
- Wrong square footage (the most common error)
- Extra bedrooms or bathrooms that don’t exist
- Incorrect year built or construction type
- Features listed that aren’t there (fireplace, finished basement, pool)
If you find an error, contact the assessor’s office. Many will correct straightforward mistakes without a formal appeal.
How to Appeal Your Property Tax Assessment
If your home is assessed higher than its actual market value — or higher than comparable homes in your neighborhood — you can file a formal appeal. The process varies by jurisdiction but generally follows these steps:
- Get the deadline: Appeals must be filed within a specific window after your assessment notice arrives. Miss it and you wait until next year.
- Gather evidence: Recent sales of comparable homes (“comps”) nearby, your own sales price if you bought recently, photos of issues that affect value, or an independent appraisal.
- File the appeal: Submit the required form to your local appeals board. Many jurisdictions offer an informal review first — start there.
- Present your case: At a hearing, you’ll present your evidence. You don’t need a lawyer, but you can hire a property tax consultant who often works on contingency.
The appeal success rate is surprisingly high — most jurisdictions report that the majority of contested assessments result in at least some reduction. The key is having comparable sales data to support your case.
Look Into Installment and Deferral Programs
Some counties allow you to pay property taxes in installments rather than a lump sum — which can ease cash flow without reducing the total. Others offer deferral programs, particularly for seniors, that let you delay payment until the home is sold. Interest may accrue but the immediate burden is reduced.
These programs are underused. Ask your county tax collector what options are available.
What Won’t Lower Your Taxes
- Improving your home: Renovations typically increase assessed value and your tax bill. This is worth knowing before a major project.
- Complaining informally: Calling the assessor’s office to express frustration won’t lower your bill. A formal appeal or exemption application will.
- Ignoring the notice: Assessment notices have appeal deadlines. If you miss it, you typically wait until the next reassessment cycle.
How Much Can You Save?
Results vary widely by location, but homeowners who successfully appeal often see reductions of $200–$1,000+ per year. Exemptions can save similar or larger amounts. These savings are recurring — once an exemption is applied or an assessment is corrected, you benefit every year going forward.
For homeowners on fixed incomes, reducing a $4,000/year tax bill to $3,200 is a meaningful $800 back in your pocket annually — without moving.