Navigating Property Taxes: A Guide to Relief and Abatement
Recently purchased a home? Congratulations! Many SaverLife members have shared that this is a major step to achieving lasting financial health and well-being.
As you start mapping out mortgage payments and planning for home expenses, it’s important to understand the ins and outs of property taxes. Read on to learn more about navigating property taxes and abatement.
Understanding Your Property Taxes
You might be wondering: what exactly are property taxes? How are they calculated, and what factors influence them? At its core, property taxes are a fundamental contribution to your community’s resources — your share of the cost to fund vital local services like:
- Education
- Roads
- Emergency services
It’s important to keep in mind that property tax is not necessarily an equal contribution from everyone in your community. Your property tax bill depends on factors like the value of your home, local tax rates, and your eligibility for exemptions. By understanding what property taxes are and how they influence your housing costs, you can optimize how you manage your money to pay for them.
What is Abatement?
Abatement is like finding a golden ticket in your tax bill — it’s a reduction or temporary suspension of your property taxes that can last for years or even decades. Abatements are often used to attract people to buy homes in low-demand neighborhoods, such as areas going through revitalization. Some abatement programs are also geared toward property owners living on low-to-moderate income, because they can make property ownership more obtainable.
Whether a state or municipal program, abatement represents a potential reprieve or deferral of tax liabilities, contingent upon specific criteria and regional recommendations. However, these programs are not a one-size-fits-all solution. To obtain more information about abatement and explore eligibility criteria, you can contact your local tax assessor’s office or the department responsible for property taxation within your municipality or county. These government agencies oversee property tax administration and can provide guidance on available abatement programs, application procedures, and any specific requirements. Additionally, you can find relevant information on official government websites, which often feature resources, FAQs, and contact details for inquiries related to property taxes and abatement.
By reaching out to the appropriate authorities and conducting research on abatement in your area, you can access the necessary information to make informed decisions about your property tax obligations.
Take Advantage of Property Tax Relief Programs
If property taxes have posed challenges to your budget, you can look into property tax relief programs. These offer targeted assistance to people who meet the eligibility requirements, and can include:
- Homestead exemptions
- Relief for seniors
- Relief for veterans who are disabled
You can contact your county office to learn more about property tax relief and the requirements to qualify. They will also be able to direct you to specific programs or resources you can take advantage of to reduce your tax requirements. The Department of Revenue for your state might also be able to provide additional information on property tax relief.
Know How Property Taxes Influence Your Financial Health
By understanding the fundamentals of property tax and exploring available programs, you’ll be able to tackle your tax bill with confidence. Remember, knowledge is power, and taking proactive steps now to understand your tax obligations will pave the way toward your long-term goals.
To continue learning about homeowners’ savings, budgeting, and other money matters, sign up for SaverLife. We provide you with the knowledge and tools to take steps toward your financial health aspirations — and connect with a community of dedicated savers along the way.