Don't Overpay on Your Property: Creative Strategies to Lower Your Property Taxes

Don't Overpay on Your Property: Here are some creative strategies to lower your property taxes, so don’t overpay on your property. Check out these tips and tricks!

Don't Overpay on Your Property: Creative Strategies to Lower Your Property Taxes
 what makes property taxes go down

All homeowners complain about how much they have to pay in property taxes. Learning how to reduce property tax is possible since they are assessed based on the property’s value. As the value rises, so do the taxes. Homeowners also need to keep paying property tax once mortgages are paid, too. Hence, learning what makes property taxes go down can be helpful in saving big bucks.

Here are some tips on how to reduce property tax.

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1. Review Property Tax Cards

Obtain a duplicate of the tax card from the assessor's local office. Your tax card includes important details about your home, such as the square footage, number of bedrooms and bathrooms, and more. It could also provide details on any recent upgrades.

Examine your tax card thoroughly. If you want an additional set of eyes, you may also work with a property manager. Bring up any disparities you discover with your assessor as soon as you can. After that, they'll make the necessary corrections to the tax card and reevaluate your property.

2. Reduce Home Improvement Projects

Your home's assessed value is closely correlated with your property tax. It might be wise to restrict the number of home renovation tasks you do. You should avoid making improvements to your property that increase its aesthetic appeal, but you can still improve certain areas.

Recall that the assessment will involve a comparison between your property and that of your neighbors. The property tax will probably be greater if it is clearly "better-looking" than theirs. Steer clear of cosmetic changes to your house, such as redoing the kitchen or installing a pool.

A property management business you've engaged in can help you determine which home upgrades won't significantly raise the worth of your house.

Pro Tip: Some home improvement renovations come with tax incentives. Some states offer such benefits for solar panel installations, which can help with your property tax.

3. Get Rid of Storage Sheds

Are there any unutilized storage sheds at your house? Think about dismantling them before the assessment. Tax assessments may be made on outbuildings, including garages, greenhouses, and storage sheds. However, not every jurisdiction is covered by this. In many places, your property tax only applies to permanent constructions up to a specific size.

If you remove them, remember to update the tax card at your local assessor's office.

4. Track and Deduct Expenses

For property owners who have given their real estate on rent, you can maximize deductions on property taxes. Any ordinary and necessary expenses can be deducted from the taxes. This includes:

  • Repairs: Any maintenance and repair costs for materials and labor can be deducted.
  • Turnaround Cost: Advertising and cleaning are qualified for deductibles.
  • General Costs: Rental insurance can be deducted from the taxes.
  • Traveling Costs: Mileage from and to the rental homes can be deducted too.
  • Interest on Loans: If you have taken loans for the mortgage, you can cut the cost of the interest from your taxes.
  • Home Office and Professional Costs: Any fees that you have paid to professionals for property management or the cost of the home office can be reduced from the taxes.
  • Homeownership Association Fees and Property Taxes: Often overlooked, these are definitely deductible.

We recommend ensuring that you have a proper bookkeeping method to track all the expenses that are associated with the property.

5. Deducting Depreciation

One important way to lower rental income tax is to claim depreciation on capital assets in addition to direct costs. Depreciation explains the natural decrease in asset value over time.

The structure itself depreciates, but the land it is situated on does not. This implies you may write off the annual housing depreciation against your taxes. Depreciation discounts are also available for major renovations like installing an HVAC system, repairing the roof, or upgrading all the windows. One of the finest methods for lowering taxes is to use this strategy to defray the expense of upkeep and improvements for your rental property.

6. Borrowing Helps

Borrowing to reduce rental income tax might be a calculated move. By amortizing your costs, you may increase your cash flow and receive tax advantages.

The IRS deducts all interest paid on loans for rental properties, such as mortgages, unsecured loans, credit lines, and business credit card balances. This is a good strategy to keep your rental income tax payments from going up.

For instance, you can deduct $2,000 from your taxes if you paid $2,000 in cash for property upkeep in a given year. If you take out a loan to cover that amount, you can deduct the interest you pay on the loan and keep the $2,000 in cash.

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7. Contest the Appraisal

Contesting the appraisal is one of the best strategies for reducing your property taxes. If you think your property's assessed valuation is too high, you can appeal it to the local tax assessor's office.

Evidence supporting your claim must be presented, such as recent sales of homes in the neighborhood, necessary upkeep and repairs for your property, or any other pertinent data that can help reduce the assessed value.


And now you know how to reduce property tax! No homeowner wants to dig into their income and pay too many property taxes. It can also cut into your profits if you have rented out properties, too. So, you can use all the ways outlined above to reduce your property taxes.