How to Reduce Your Property Tax

There’s a certain sense of joy and pride that comes with owning your own home and calling it yours. However, there’s also no denying that the property tax on your home can be a thorn in your side. But that doesn’t always have to be the case! There are a few simple tricks you can use to help reduce your home’s property tax.

Study Your Tax Card

You’re allowed to go to your local city hall and request to see or get a copy of your tax card that holds information your town has collected about your property over time. You’ll be able to take note of any discrepancies and, if there are any, the local tax assessor will either correct them or schedule a re-evaluation of your home.

Avoid Building

It may be tempting to add a new inground pool, backyard patio, or other amenity to your home, but these are all considered permanent fixtures and will increase your property tax. If you really want to add onto your home, call your local tax and building departments to get a rough estimate of how your property taxes would be affected if you make these additions.

Cool Your Curb Appeal

While tax assessors have strict guidelines to follow when evaluating your home, they also are allowed to make some subjective decisions — namely by comparing your property to that of your neighbors. Since you’ll probably know when your assessor is coming, try to avoid making your yard look too pretty or adding any improvements — new countertops, large deck, stainless steel appliances, etc. — to your home until after your assessment.

Check Your Neighbors’ Homes

Information about other homes in your area is open to the public. Do some research, and see how your home compares to your neighbors’. For example, if you have a 4-bedroom home with a two-car garage and your home was valued at $550,000, but your neighbor has a four-bedroom home with a two-car garage, inground pool, and large deck, but was valued at $540,000, they may be a discrepancy or mistake that could warrant you a re-evaluation.

Take the Tour with the Assessor

Your tax assessor will probably only see the good things about your home — the stone fireplace or backyard shed. However, they might not note the out-of-date appliances or drafty roof. Walk with your assessor to highlight these type of things (along with the good things) to get a fair evaluation and help reduce your property tax.

If you’re thinking about your home’s finances, we can help! At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From investments to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.