Understanding Property Tax Exemptions: A Guide for Homeowners
At Carrington Mortgage Services, we recognize that property taxes can be a significant expense for homeowners. Fortunately, various property tax exemptions can help alleviate this financial burden if you qualify. Let’s explore what these exemptions are and how they can benefit you.
Disclaimer: The information provided in this article is for general informational purposes only and is not intended to be, nor should it be construed as, legal, tax, or financial advice. Property tax laws and exemptions vary by jurisdiction, and eligibility requirements may change. Homeowners should consult with a qualified tax professional, legal advisor, or their local tax authority for guidance specific to their situation. Carrington Mortgage Services, LLC makes no representations or warranties regarding the accuracy or completeness of the information provided and is not responsible for any decisions made based on this content.
What is a property tax exemption?
If you own real estate, you are responsible for paying property taxes based on the assessed value of your home. In some states, property values are reassessed only during specific events, while others conduct regular assessments. As home values rise, so can your property tax bill, making it essential to understand your options for exemptions.
If you have an escrow account, we manage paying these bills on your behalf. It is important to
remember that we are required to pay any tax bills received, so if you have a property tax exemption, be sure to follow up with your tax authority on a regular basis to see if it needs to be renewed.
Types of property tax exemptions
- Senior property tax exemption: Many states offer tax relief for senior citizens. Eligibility often depends on age, residency and income, with some laws deferring taxes until the property is sold.
- Veteran property tax exemption: Veterans and active-duty service members may qualify for exemptions that can significantly reduce or eliminate their property taxes. Surviving spouses may also be eligible for benefits. For a guide with state specific information, click here.
- Disability exemptions: Individuals with disabilities may receive tax relief, with varying policies depending on the area. You may need to provide documentation of your disability to determine eligibility.
- Homestead exemptions: Homeowners using their property as a primary residence may qualify for homestead exemptions, which protect a portion of their home's value from taxation, potentially saving thousands.
How to claim a property tax exemption
If you believe you qualify for an exemption, follow these steps:
- Confirm eligibility: Check with your local tax authority to ensure you meet all qualifications.
- Gather documentation: Collect necessary paperwork, including proof of ownership and income.
- Submit your application: Apply through your local tax collector's office or department of revenue before the deadline to secure your potential savings.
Frequently asked questions
- Are disabled veterans exempt from property taxes? Yes, many states provide exemptions for disabled veterans. Check here for details.
- What properties are exempt from property taxes? Exemptions can apply to various properties, including those owned by nonprofit organizations and government entities.
- How can I determine my eligibility for a property tax exemption? Review state and local resources, contact your tax collector's office, or consult a tax professional for guidance.