Property Tax Relief: Are you paying too much on property taxes?

(Last Updated On: June 6, 2018)

You may qualify for property tax relief! Homeowners all over America are paying too much in property taxes. Most of them don’t even know about the programs they might qualify for! Property tax relief is available for eligible homeowners and we’re going to show you how to identify and take advantage of these helpful programs.

What are property taxes? What do they go to?

Local governments collect property tax based on the value of the property you own.

The more valuable your property, the more you pay. That doesn’t mean you shouldn’t repair or upgrade your home when possible (in fact, you may qualify for free home improvements)!

The local government sets the rate and uses the money for education, emergency services, and parks and libraries (you can get more free stuff at the library!). Property tax payments are typically included in your mortgage payments and then paid twice per year to your local government. However, you can get either partial or full property tax relief to bring that bill down and save you money.

Got other Frequently Asked Questions about property tax relief.

We all hate paying too much taxes. Lowering your bill may take time and paperwork, but it is worth the money you will save. Property tax relief is based on your county and state. Your county may have property tax relief for widows, volunteer firefighters, and much much more. Here are five common ways to get property tax relief.

What is a homestead exemption?

Homestead exemptions allow you to get property tax relief on all or part of your home value—just for living in your home! Your age and income level may affect your exemption.

Do disabled vets pay property taxes?

Most states give property tax relief to seniors, disabled and to military veterans. Some states give exemptions to all veterans, while others focus on disabled or low income vets. Veterans who either use the home as their primary residence, served during wartime, or were honorably discharged are able to get property tax relief. Surviving spouses of deceased veterans may also qualify. See a list of exemptions for disabled veterans by state here.

Looking for more veteran’s benefits? We have plenty of resources for you!  

Do seniors pay property taxes?

States may give property tax relief based on age. Some states start at 61, while others require you to pass 65 to qualify. Smithtown, N.Y. gives an additional benefit to the elderly—they will exempt property you build or renovate to give a grandparent a home.

How do renovations and repairs affect property taxes?

Are you thinking about repairing or upgrading your home? Before you start, check with your county tax assessor to see if you qualify for property tax relief. Some states only give the exemption before you begin renovation. They are worth the effort to obtain!

For example, in Bismarck, N.D., you can get five years of the value you add to your home exempt from property tax! If you’re renovating in Pierce County, Wash., you can earn an exemption for a certain percentage of your assessed value for 3 years! Be sure to check out these exemptions, especially if you’re using one of these free home repair grants!

How do green and renewable energy affect property taxes?

You can get money off your property tax bill by installing renewable energy. Some states will take the value you add with the renewable energy off your real estate assessment. Find what your state offers here for renewable energy preoprty tax relief.

 

Does your state offer property tax relief?

Alabama taxes are due every October 1st. The law requires that you visit the Revenue Commissioner’s Office if you are renovating. You do not have to pay state property taxes if you are over 65, or permanently disabled or blind (regardless of age), but you may still have to pay county property tax. In addition, Alabama offers homestead property tax releif.

Alaska has exemptions for seniors over 65 years, and disabled veterans with a service disability of 50% or more, of up to $150,000 off the value of your property to be taxed.

Arizona disabled veterans can receive property tax relief of $3,000 off properties valued at $10,000 and under. They also offer property exemption for low income Indian housing. Property used for agricultural purposes and for livestock, poultry, or colonies of bees can also qualify for an exemption. Widowers and disabled persons over 17 are also eligible for tax relief.

Arkansas may give property tax relief to disabled veterans, but it varies by county. Veterans who have 100% service-connected disability may be exempt from all property taxes! Widows and dependent children can receive that property tax exemption also.

California gives homeowners a $7,000 reduction in the value of the home to be taxed, just for being a homeowner!  California also gives disabled veterans with a service-connected injury and exemption on property tax for up to $100,000 or more if the disabled vet is low income as well. Additionally, that exemption increases annually with inflation! California also has property tax relief for all veteran’s and for properties of very low value. To see what you qualify for, visit their website.

Colorado gives military veterans and seniors over 65 a deferral on property taxes. The property taxes must be paid before t property cannot be sold or transferred.

Connecticut gives property tax relief to the disabled, seniors, and veterans and depending on your county they may also offer relief for firefighters, emergency personnel and their spouses, and homeowners whose property taxes are more than 8% of their income. So, if you have a small income and high property taxes, you should contact your county assessor to see if you qualify for property tax relief.

Delaware gives seniors 65 and over up to 50% off their property taxes! Note that the discount will not exceed $400.

Florida offers the homestead exemption I mentioned earlier as well as exemptions for home owners with disabilities, veterans, seniors (65+), active duty military, and disabled first responders. Contact a county appraiser to apply for any of the exemptions.

Georgia also offers a homestead exemption for those who own the property and have lived there since January 1stof the taxable year. It is important to note that in Georgia, you must file before April 1stto get exemptions for that year! Additionally, seniors over 62, disabled veterans, and surviving spouses of military, peace officers, and firefighters can receive exemptions.

Hawaii has the lowest property tax rate, but they still have ways to get property tax relief. Seniors 65 and older by June 30thof the taxable year can qualify for $120,000 exempt from taxes on the value of their home. All basic homeowners who live in the property as their principal home can get up to $80,000 exempt from taxes. Additionally, if a husband and wife live in separate homes they may qualify for an exemption. Other exemptions include disabled vets, those with Hansen’s disease, the blind or deaf, and the disabled.

Idaho homeowners can get property tax relief of either 50% off the taxable value of their home and an acre of land or $100,000 off, whichever is less. And for those whose income is under $43,636, you can also apply to defer payments of property tax.

Illinois offers a homestead exemption for all residential property occupied by its owner. In Cook county, if you have occupied your home for over at least five years and have an income under $100,000 you can receive a long-time occupant exemption. All those with a disability may receive up to $2,000 off the taxable value of their home. You can also receive exemptions as a veteran with disabilities, in the case of a national disaster, if you are doing home improvements, and as a senior citizen (65+).

Indiana has two types of property tax relief: exemptions and deductions. For exemptions, meaning all or part of your property is not taxable, Indiana requires you to apply before April 1stof the taxable year and you must reapply every year. For deductions, you only pay taxes on part of the value of your home. Exemptions are rarer, but to get deductions you can qualify for a veteran, a senior over 65, disabled person, or homestead deduction.

Iowa gives both tax credits and exemptions. You can receive one if you are military, senior, disabled, have a family farm, have low-rent housing, and more. Iowa’s website includes a description with requirements, and eligibility for each exemption so check it out!

Kansas offers low income seniors a 75% refund of their property tax. To qualify, you must be 65 or older and have a household income of $19,500 or less. Additionally, if Kansas is your permanent residence and you have a 50% or more disability rating as a result of military service, you may receive property tax relief based on your income.

Kentucky residents 65 and older are eligible for an exemption from taxes on part of the value of your home. Kentucky reviews the cost of living index every two years to readjust the exemption as needed. Each household is allowed one exemption only.

Louisiana will look at those who are 65 or older and have an income under a certain level. The level changes each year so check with your county assessor to see if you qualify. Also in Louisiana you can apply for a homestead exemption if your home is your primary residence and receive up to $7,500 of the taxable value of your home.

Maine gives partial exemptions to veterans, the blind, and a homestead exemption for residents that have owned property in Maine for at least 12 months. The exemptions can be anywhere between $4.000 and $50,000 off the taxable value of your home.

Maryland gives a generous exemption to disabled veterans—FULL property taxes relief on their home and yard! Additionally, Maryland’s property taxes are based on your income. If you have a household income under $8,000 then you pay NO property tax! Your property tax will increase at the same time as your income. You can see the specific tax limit for your income on their website.  Maryland bills for property taxes every year in July and August.

Massachusetts has applications for seniors, veterans, survives spouses, blind, and low-income persons to get some taxes exempt. Plus, they also offer deferral of payments for those in financial hardship, seniors, and more. You can get an application from their website.

Michigan offers an exemption for senior citizens and/or disabled. You must fill out a form from their website in order to receive the exemption. Additionally, if Michigan is your primary residence—meaning you live there most of the year—and your total household income is $50,000 or less, you can qualify for a homestead exemption and Michigan will help you pay some of your taxes! Find the specifics to see if you qualify and how to apply on Michigan’s website.

Minnesota renters and homeowners can qualify for a property tax refund. Renters’ household income must be under $60,000 and homeowners’ household income must be under $110,000. But also, homeowner’s whose property ax increased more than 12% in one year can get a refund up to $1,000. You will just need to file some paperwork! Minnesota also has options for disabled veterans and their surviving spouses.

Mississippi gives property tax relief to those who are disabled or 65 and older from all property taxes up to $7,500. Plus, anyone who owns a home can receive a homestead exemption! Those eligible can apply with their local county tax assessor between January 1stand April 1stand in Mississippi, you don’t have to reapply each year!

Missouri allows certain senior citizens and those with a 100% disability rating a tax credit of up to $750 for renters and $1,100 for homeowners. However, note that if the facility you rent from does not pay property taxes then you cannot receive a tax credit.

Montana bills you for property taxes each October. Certain tribal properties can qualify for a tax exemption. Some property is automatically exempt from property taxes in Montana including sprinkler irrigation systems, livestock, poultry, bees, and all household goods and furniture. Additionally, disabled vets and their spouses may receive an exemption if the disability is rated at 100%.

Nebraska veterans who were discharged under honorable conditions and have a disability or blindness may be exempt from property taxes. Nebraska also offers a homestead exemption for those who have their primary residence in Nebraska. This is specifically for persons over 65, veterans totally disabled, disabled individuals, veterans’ widow(er)s, and persons with a developmental disability.

Nevada gives partial property tax relief for surviving spouses, blind persons, veterans, and more. Disabled veterans can receive up to $20,000 off the taxable value of their home! Elderly and handicapped housing can receive a FULL exemption from property tax. Due dates for exemptions depend on which one you are applying for, so make sure to check with your county assessor. The details for each exemption are in this guide in the appendix. 

New Hampshire  allows a tax credit for veterans of at least $50 and up to $500 depending on your county. Surviving spouses whose spouse died on active duty or in military service receive a minimum $700 and can receive up to $2,000. The same credit applies to those with a service connected total disability. For the elderly to receive an exemption they must be over 65, have lived in New Hampshire for at least three years, and have a net income under $20,400 if married and $13,400 if single. Additional exemptions are available for deaf or severally hearing-impaired persons.

New Jersey will deduct $250 of tax each year from war veterans or their unmarried surviving spouses. Totally disabled veterans can receive a FULL exemption from property taxes! So can their widowed, unmarried spouses. Senior citizens and disabled persons also get a yearly $250 deduction from their property taxes. And fun fact, if you have a radiation shelter on your property you can get up to $1,000 off the taxable value of your property. New Jersey also has the homestead exemption (discussed above).

New Mexico has a head of family exemption for residents who are either married, widowed, the head of the household financing at least half the cost for a relative, or a single person. Only one exemption is eligible per household, but you only have to apply once, and it will automatically renew each year. You can receive up to $4,000 off the assessed value of their property if you are a veteran or the non-married surviving spouse of a veteran.

New York property tax relief varies widely depending on your county, so make sure to talk to your local assessor to find out what’s available in your community. Some of the most common exemptions in New York are exemptions for senior citizens, veterans, persons with disabilities, and STAR. STAR is a school tax relief that you only have to register for once. To be eligible, you must own your home as your primary residence and make under $500,000. If you qualify you will receive a check for your credit. You can find more details and what documents you need online. 

North Carolina has partial property tax relief for those 65 or older of $20,000 or 50% of your home’s value. Additionally, disabled veterans can receive a $45,000 exemption! But if they may not receive additional property tax exemptions. Disabled persons and elderly may also elect to defer part of their property taxes until a later date.

North Dakota gives property tax credit to individuals who are 65 and older or permanently disabled and have an income under $42,000 a year. Disabled veterans with at least a 50% disability rating can reduce the value of their property to be taxed.

Ohio also has a homestead exemption for low-income seniors and permanently disabled residents. Ohio will exempt up to $25,000 of the value of their home from taxes, however that amount varies by county. In addition, disabled veterans can receive up to $50,000 exempt from the value of their home.

Oklahoma gives all residents whose Oklahoma home is their primary residence a $1,000 exemption from the taxable value of their home. On top of that, if you have a household income under $20,000 you can receive another $1,000 tax credit.

Disabled vets or their surviving spouses receive FULL exemption for taxes on their home! Seniors also get great benefits in Oklahoma.

Seniors are also eligible for property tax exemptions. If your income is below the county median, your taxes will be frozen. If your income is under $12,000, you can get a discount of up to $200 on your property taxes. A $2,000 exemption is available for seniors with incomes under $10,000 who live in manufactured homes.

Oregon residents are in luck! Oregon has over 100 ways to get property tax relief! Additionally, Oregon has deferral programs for disabled and senior citizens where the state will pay some of your property taxes for you and you pay it back later. Visit their website or talk to your local assessor to find out what you qualify for in Oregon.

Pennsylvania vets who are 100% disabled from their war service and have income under $89,000 a year can be FULLY exempt from property taxes! If you’re not a disabled vet, you can still get a homestead exemption. In general, most homes and farms of primary residence are eligible for property tax reduction. You can contact you county assessment office and file before March 1st to get property tax relief.

Rhode Island provides property tax relief for veterans, the elderly, and a few miscellaneous exemptions. Benefits vary by county, so see what is available in your area by contacting the local assessor or going online.

South Carolina allows those who are over 65, totally disabled, or legally blind to receive $50,000 exempt from the value of your property to be taxed. You only have to apply once and will need to provide documentation. See South Carolina’s page for more info.

South Dakota has different options for seniors, disabled citizens, and veterans. Options include receiving a refund, exemption, or assessment freeze. Look into your options on South Dakota’s official site.

Tennessee residents should contact their county trustee to apply for property tax relief. You can apply for property tax relief after you receive your property tax bill. You should consider applying if you are elderly, disabled, a veteran, or a widow(er) of a veteran. See if your eligible using Tennessee’s property tax relief pamphlet.

Texas only has local property taxes, so the State of Texas does not charge any property tax. But, you can still file for local exemptions which are generally due before May 1st. Some common exemptions in Texas are homestead, 65 and older, disabled persons, veterans, and solar and wind-powered energy devices which can range anywhere from $3,000 in exemptions to full property tax relief! Learn more at comptroller.texas.gov.

Utah homeowner’s can receive the homestead exemption for 45% of fair market value of their property, meaning you only have to pay taxes on 55% of your home!

Vermont disabled vets can receive anywhere from $10,000 to $40,000 exempt from their property if they are at least 50% disabled. Additionally, if you feel that your property was over-assessed, meaning the county valued your home more than it’s real value and expects more taxes, then you can file for a tax adjustment claim. Find out more on Vermont’s site.

Virginia has property tax exemptions for the elderly and disabled, but the benefits vary by location so contact your county assessor to find out what you qualify for. And, if you are a 100% disabled veteran in Virginia you can have all of your property taxes exempt!

Washington gives property tax relief to many different people, including low income families, widows/widowers of veterans, seniors, disabled persons, and nonprofits. Property tax reductions are available for low income veterans, disabled persons, and seniors. Deferments are also available for those who are 60 years old, disabled, or have an income of $57,000 or less.

Washington DC also has property tax relief! DC offers 50% off property taxes for disabled veterans over the age of 65, who make less than $130,000 per year. Plus, DC residents can receive up over $73,000 off their property’s assessed value for taxes with a homestead deduction! Senior citizens and disabled can also receive benefits.

 West Virginia exempts $20,000 from a property’s value for person 65 and older or who are totally disabled.

 Wisconsin policy is that all property is taxed unless it is exempt by state law. The VA offers a tax credit to veterans who resided in Wisconsin when they entered military service. The amount varies, and for this exemption contact the VA directly. Wisconsin also has tax relief for the elderly and a homestead credit.

 Wyoming has property tax relief for veterans. To qualify, you must have lived there for at least three years or be disabled. Both are eligible for up to $3,000 off the assessed taxable value of the property. Tax deferral programs are available for Wyoming residents who are at least 62 years old or disabled.

Want more info?

Property tax exemptions are administered by your local county assessor’s office. You may need to bring documentation for some of the exemptions. Your county tax assessor can let you know what to bring.

What else can you get relief on?

Get more deals and freebies here!

 

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