$17,459. No, it’s not the cost of a VIP-suite Taylor Swift concert ticket. If you’re a homeowner, it’s the average amount homeowners shell out in a year on the various “hidden” costs of owning property.
Surprised? You’re not alone. Many homeowners fail to realize the collective impact of property taxes, insurance, repairs, maintenance, and more on their wallet over the course of a year—and those costs continue to rise. Soaring home values are causing property taxes in particular to rise, and a third of all property owners say their property tax bill is consistently higher than expected.
Thankfully, you can reduce the cost of home ownership by lowering the amount you pay in property taxes. Below, we break down our top tips and tricks for doing just that.
Following one or more of these tips can put a substantial dent in your bill—giving you a little extra for other home expenses, groceries … or a ticket to see your favorite artist in concert. So without further ado, let’s dive in.
Tip #1: Review Your Property Tax Bill for Errors
Think it’s unlikely you’ll find a mistake on your property tax bill? Just do a simple online search for “property tax errors,” and you’ll quickly realize it’s not uncommon!
That’s why reviewing your property tax bills is so important. Look for administrative mix-ups (like the wrong property number on the bill), calculation errors, and more. Remember, the basic calculation for property tax is:
(your home’s assessed value) ✕ (your area’s property tax rate)
So if your home is assessed at $300,000 and your area’s tax rate is 1.23% ($1.23 per $100 of taxable home value), your property tax should be $3,690.
An error of any kind could indicate the amount due is inaccurate.
How to Identify Errors in Your Property Tax Bill
- Check your property’s tax card for mistakes
- Accessible through your town’s website or your local government office, property tax cards list basic information about your property. Incorrect information may affect your tax bill. Notify the tax assessor if you find an error.
- Review your property tax bill for potential errors
- Specifically, check:
- Lot size and square footage
- Property number
- Address
- Home valuation
- The difference between this year and the previous year’s amount
Do the calculation yourself
This example from Cook County, Illinois, shows why this is a good idea!
Tip #2: Appeal Your Property’s Assessed Value
Your home’s value is a key component of the property tax calculation. The lower the value, the lower your property tax.
You may be able to make the case that your property value is too high—this is called an appeal or a protest. For instance, an assessor may have been unaware of key information relevant to value, like recent damage.
If you intend to appeal, ask your local tax jurisdiction for information about the process. Usually, it involves filing a formal protest, paying a fee, hiring an independent appraiser, gathering evidence about your home and neighborhood, and presenting your case in front of a review board.
When to Consider an Appeal
Studies show assessors tend to overvalue low-priced homes and undervalue high-priced ones. Homeowners in the bottom 10% of a jurisdiction pay an effective tax rate that’s nearly double what’s paid by the top 10%. So, it’s reasonable to question your assessment—even if there aren’t any obvious red flags.
Pro tip: If you want to appeal but aren’t sure how to get started, reach out to us at Ownwell. We’ll handle the entire appeal process for you—and you only pay if we win.
Kick off the process today with a few quick questions!
Tip #3: Take Advantage of Property Tax Exemptions
Many tax jurisdictions offer property tax exemptions for homeowners. Amounts and eligibility vary by locale, but some are quite substantial. If you qualify for any of them, don’t pass up the opportunity to apply.
One example: Texas offers a general residence homestead exemption that currently excludes $100,000 of your property’s value from taxation as long as it's your primary residence. As you can imagine, an exemption of that amount has a sizable impact on your property tax bill! Seniors, veterans, and disabled individuals also usually qualify for exemptions.
Eligibility for Exemptions
To take advantage of an exemption, you must determine your eligibility and apply to receive it. Check your local assessor’s website for information on all the exemptions your jurisdiction currently offers, including eligibility criteria and application forms.
Don’t forget to make note of the deadline for application submission and the schedule for reapplying. Some exemptions never expire, while others require periodic reapplications to ensure you still qualify.
The Ownwell team can also help you identify and apply for applicable exemptions in your area.
Tip #4: Compare Your Property’s Value to Your Neighbors
If you’ve been looking for a good reason to interact with your neighbors, here’s one: Your conversations may reveal information that can help lower your property tax bill!
Your home’s assessed value isn’t always similar to your neighbor’s value. Maybe they have a pool or a remodeled basement, or their property is newer or larger—or perhaps they appealed their valuation in previous years.
If your property is valued higher than similar homes nearby, it may be helpful evidence and grounds for an appeal. Plus, some of your neighbors might be grateful for the information as well!
Tip #5: Limit Major Home Improvements (Or Do Them Strategically)
Most homeowners know that big projects, like updating a kitchen or adding a deck, will increase the resale value of their home. But don’t forget the more immediate impact of a higher home value: an increased property tax bill.
Say the value of your $250,000 home increases by $10,000 due to a new deck. At a tax rate of 1.23%, your property tax bill would jump from $3,075 to $3,198.
That doesn’t mean you can’t make changes to your home—it simply means you need to be strategic about it and consider their impact on your property taxes.
Focus On Small Upgrades
Not all renovations will drive up a home’s value. Stay away from projects that involve structural changes or increase your home’s living space, like finishing a basement, adding a deck, and building an inground pool.
Small, less costly improvements, like landscaping, painting, or updating kitchen and bath fixtures can be very impactful aesthetically and help improve resale value but are less likely to affect your taxes.
Another tip: Time your renovations with the following property reassessment in mind. If your town reassesses properties every five years, for example, wait until after the next assessment to begin your project. You’ll get a reprieve for a few years—especially if assessments happen every two to three years.
All that said, if you really want to renovate now, don’t go into it blind! Ask your local assessor for an idea of how much your taxes might increase so you can be prepared.
Tip #6: Explore Property Tax Relief Programs
Many local governments offer relief programs for homeowners facing financial hardships.
For example, Cincinnati, Ohio’s HomeSafe Property Tax Relief Program offers help to low-to-moderate-income homeowners who are delinquent on their property taxes.
Some municipalities also offer seniors and individuals with disabilities an opportunity to “freeze” property taxes at a set amount. Even in the event of a tax rate increase, the property tax bill will stay the same. (Note that a freeze might not apply if improvements are made to the home!)
How to Apply for Property Tax Relief
Check your local tax assessor’s website or visit the office in person for information. If a program is available, complete an application to determine your eligibility and get approved. Be prepared to submit a variety of supporting documentation.
Tip #7: Work with Ownwell to Maximize Property Tax Savings
Imagine having a partner working on your behalf to consistently lower your monthly bills, including property taxes. That’s what it’s like to work with Ownwell! Our services help you save on whats likely your greatest expenses—and we do all the work, so you don’t have to.
We’ll make sure you take advantage of every possible savings opportunity, including:
Property tax bill reductions: We do a deep dive into your assessment and, with the help of our proprietary software, compile evidence for a substantial property tax appeal. Our local tax experts file all the necessary documentation and shepherd it through the system, standing in for you at hearings and negotiating on your behalf. Eighty-six percent of our cases receive reductions!
Property tax exemptions: We take the burden of searching for exemptions and filing the necessary paperwork off your plate. We continuously monitor your exemption status and reapply as needed. In some states, we’ll even apply for previously missed exemptions!
Monthly bill reductions: We ensure you never overpay for your monthly home services such as internet, phone, security systems, and others. Our reduction experts work directly with your providers to find savings. Plus, we monitor and compare payment rates continuously. With the two minutes it takes to activate this service, you could see an average savings of as much as $238 per bill!
Why Choose Ownwell
You could do all of the above yourself, or you can increase your likelihood of success by partnering with Ownwell.
Appealing your property tax bill is time-consuming and requires expertise in building a strong case. Ownwell's local tax experts understand your market, have relationships with assessors, and know how to present the exact right data for the best chance of success.
On average, homeowners who work with us have been able to reduce their property tax bills by $1,148.
As for monthly bill reductions, most people don’t have the time to search for savings opportunities or the patience to haggle with their home service providers to reduce their bills. Handing the responsibility over to Ownwell ensures the job gets done—and you can be confident you’re not overpaying for crucial home services.
The best part: You don’t pay anything for these services unless we achieve savings!
It takes less than five minutes to sign up. Just answer a few quick questions here to get an idea of how much you could save by working with Ownwell.
Lower Property Taxes Can Be a Reality
Property taxes are a fact of life, but that doesn’t mean the amount is set in stone—or you must pay them unquestioningly. Take advantage of all the available options to reduce property taxes, and if that includes an appeal, we hope you’ll reach out to us at Ownwell for help.
Millions of people overpay property taxes every year. Don’t be one of them!
