Homeowners can reduce their property taxes by claiming exemptions, correcting assessment errors, appealing valuations, and planning purchases and improvements wisely.
Owning a home offers many benefits, including privacy, customizability, the ability to earn equity, and the opportunity to claim federal and state tax deductions.
But when it comes to the latter, there’s no getting away from one tax certainty: You’ll have to pay your share of local property taxes, and you can likely count on this amount going up as you continue to own your home.
Eager for some tax relief? Read on to learn effective tactics for lowering your property tax bill.
What Do Property Taxes Pay For?
Property taxes are levied to fund many local and county functions, including schools, emergency services, road maintenance, parks, public libraries, and, in some areas, water districts.
A local assessor’s office will determine the fair market value of your home based on nearby sales activity, property characteristics, and other criteria, and then use the millage rate of your area to calculate your annual bill. The math typically follows this formula:
(Assessed value - exemptions) x tax rate = your tax bill
“For example, if your taxable value after exemptions is $200,000, and your tax rate is 2%, you will owe $4,000,” notes Caleb Reits with City Lights Home Buyers.
Chad C. Silver, managing partner of Silver Tax Group and a licensed tax attorney, explains that “the money collected is directed to government bodies within the local area that consist of counties, cities, school districts, and special districts. Each of the jurisdictions is paid a portion of the money, depending on its approved budget.”
Property taxes are typically due annually, semi-annually, quarterly, or at other intervals, depending on your jurisdiction.
Per ATTOM data, the average tax bill jumped from $4,062 in 2023 to around $4,300 in 2024 – an increase of nearly 6% – with a total of $382.7 billion in property taxes levied on single-family homes in 2024.
Strategies for Paying Less in Property Taxes
Don’t think your tax bill is fair? Concerned that your tax assessor has the facts about your property wrong? Perhaps you qualify for an exemption you weren’t aware of, or you want to dispute your bill.
A few minutes of due diligence could save you hundreds or even thousands of dollars every year. Here are recommended strategies for improving your odds of lowering your property taxes.
Apply for a Homestead Exemption
If you occupy your owned property as your primary residence, you likely qualify for a homestead exemption. This exemption directly reduces the assessed value of your property, provides a fixed deduction, or puts a ceiling on annual increases in your assessed value, such as a 3% cap per year.
To apply, you’ll need to complete a form and provide proof of residency to your local county tax assessor by their annual deadline; your exemption will then be approved or renewed per local rules.
Apply for a Low-Income or Hardship Exemption
If you qualify, your local tax office may permit a tax exemption, value reduction, tax deferral, or a grace period – so long as you can demonstrate decreased earnings that fall below your jurisdiction’s set threshold. Prepare to provide proof of income, age, disability, or other qualifying circumstances.
“Residents who are faced with last-minute financial stress usually are eligible for a hardship program,” Silver continues.
Apply for a Senior Exemption
Many jurisdictions offer an additional tax freeze or reduction in taxable value to seniors (typically those 65 or older).
“In many areas, seniors can freeze school taxes or overall taxes at the current level, limiting future increases,” says Vince Honer with Destefano Family Homes.
But senior exemptions are not automatic when you reach 65 – you often must apply and provide proof of age. Some states also have income limits on senior exemptions.
Apply for a Disability or Veteran Homeowner Exemption
If you are a current or past military member, you may be eligible for a tax exemption or special relief – especially if you're a disabled veteran, in which case the exemption can be even higher.
“Veterans with a known service-related disability should be able to receive large discounts. Some states provide a complete exemption,” says Silver.
Likewise, if you are a non-veteran with a qualifying disability, you may be eligible for a value reduction or assessment freeze.
Apply for Tax Abatement Programs
Some areas provide tax incentives – like tax freezes or reductions – when you complete home renovations or construction in designated zones, including historic districts or revitalization zones, which can create significant tax savings over time.
Appeal Your Assessment
If your taxing area overvalues your property, you have the right to contest it by appealing your assessment.
“If comparable homes in your area are selling for a lower amount than your assessed value, you may have a case for reduction. Many homeowners do not appeal, but among those who do, a good number succeed,” says Reits.
Be aware of appeal deadlines, and prepare to provide evidence in the form of comparable property sales, a recent appraisal, photos of your home, repair estimates, and other documents substantiating your claim.
“Hiring an attorney or company that specializes in appeals can help if your case is complex. But there’s a cost involved,” cautions Martin Boonzaayer, founder and CEO of The Trusted Home Buyer. “On the plus side, you’ll get professional guidance and potentially higher savings. But the fees charged may outweigh the benefit in smaller cases.”
Correct Assessment Errors
Incorrect room counts, square footage, and other characteristics of your home can overestimate your assessed value. Requesting a correction and/or reassessment means your local assessor will check the physical aspects of your property carefully.
“If your assessor has you at 2,200 square feet when you only have 1,800, you are overpaying every year. Pull your property record card from your assessor’s website, and check what’s listed for living area square footage, finished versus unfinished basement, bedroom and bath count, garage spaces, outbuildings, pools, and decks. If the facts are wrong, request a reinspection or file a correction by providing the correct information,” suggests Honer.
Eric Chebil, founder and CEO of Cher, points out that portable sheds, play equipment, and seasonal items are sometimes added incorrectly as well.
“If it’s not a permanent structure, it should not raise your taxes,” he says.
Your assessor may have also included some improvements that you’ve never actually made to your home. Point out these errors to your assessor’s office, provide photo proof and an explanation, and request that they be removed and your property be reassessed.
If your assessor has you at 2,200 square feet when you only have 1,800, you are overpaying every year.
Seek Agricultural or Land-Use Valuation
If you own farmland or a lot/parcel that is used in a qualifying manner as open space, you may be given a special valuation.
“Such programs levy the land at the cost of productive use, but not at market value,” Silver adds.
Utilize Green or Energy-Efficient Exemptions
Certain states also provide exemptions or credits when you use solar panels, install geothermal systems, make energy-efficient retrofits, or implement LEED-certified improvements. Check carefully for rules, restrictions, and deadlines.
Check for Local Exemptions
Some counties, cities, and school districts may have separate exemption programs you can qualify for.
“Beyond state-level relief, local government entities could offer, for example, first-time homebuyer programs, neighborhood stabilization relief, extra school district exemptions, and disaster-recovery exemptions after storms or floods,” Honer explains.
Shop for a Home Where Taxes Are Less
If you have yet to purchase a home, one of the most effective ways of paying lower taxes is to choose a property in a jurisdiction with lower effective tax rates.
“This can reduce your long-term housing expenses by thousands of dollars,” notes Silver. “Taking a close look at past millage rates, as well as the current evaluation patterns in that jurisdiction, can help when deciding on a property in a given location.”
Because tax rates vary so much from area to area, two comparable homes can have totally different tax bills depending on their locations.
“For instance, say there are two homes, each priced at $300,000. In Town A, with a 2% tax rate, you’d pay $6,000 every year. But in Town B with a 0.5% tax rate, you’d pay only $1,500 per year,” Reits says.
Taking a close look at past millage rates, as well as the current evaluation patterns in that jurisdiction, can help when deciding on a property in a given location.
Be Cautious of Low-Priced Homes in High Property Tax Areas
If you are home shopping, you may find a property for sale with a price that seems a little too good to be true. The reason could be that the seller priced the home artificially low due to high property taxes.
“Some properties are underpriced due to high taxation, which can reduce the number of buyers and force sellers to lower the price to enable the home to compete,” says Silver.
“You could choose to buy at a discount and then take measures to deal with the tax bill following the sale, since the assessment is not permanent and can be appealed. By submitting an appeal, requesting corrections of assessor mistakes, and seeking exemptions, you can hopefully lower your property taxes.”
Time Your Home Improvements Carefully
Thinking about making renovations? While they will increase your home’s value, they can also raise your taxes.
“If your area is due for tax reassessment next year, you might want to think strategically about when to make big upgrades and time this decision carefully,” advises Reits.
The Bottom Line
Property taxes gather necessary funds to keep our communities, schools, and roads running smoothly. But they can also put a serious dent in your wallet. Thankfully, there are proven ways to pay less for property taxes if you are eligible for particular exemptions or can demonstrate that you’ve been overcharged.
Remember: You have the right to push back and appeal your assessment. Just be prepared to furnish evidence that supports your dispute.
