Understanding Property Tax Exemptions
Property taxes can be a significant expense for homeowners, but there are several property tax exemptions available that can help reduce your tax bill. Here’s what you need to know.
A homestead exemption provides a reduction in your property taxes for your primary residence. The amount of the exemption varies depending on the state and the value of your home. To qualify, you must be a permanent resident of the home and use it as your primary residence.
Senior Citizen Exemption
Many states offer property tax exemptions for senior citizens. The age requirement and amount of the exemption varies by state, but generally, you must be 65 or older to qualify. In some cases, income limits may also apply.
Disabled Veterans Exemption
Disabled veterans may be eligible for property tax exemptions in some states. The eligibility requirements and amount of the exemption vary by state, but generally, you must have a service-related disability and meet certain income requirements.
Energy Efficiency Exemption
Some states offer property tax exemptions for homeowners who make energy-efficient upgrades to their homes. These upgrades may include installing solar panels, upgrading insulation, or installing energy-efficient windows.
Property tax exemptions can provide significant savings for homeowners. If you think you may be eligible for a property tax exemption, it’s important to research the requirements in your state and apply for the exemption if you qualify. Consult with a tax professional or use tax software to ensure that you’re claiming all the deductions and exemptions that you’re eligible for on your tax return.