Property taxes are an unavoidable expense when you own real estate, but some states and areas are more lenient than others – especially when it comes to tax exemptions offered to different demographics such as seniors.
What are tax exemptions?
Exemptions have no effect on tax rates and typically do not reduce your tax bill. As the name suggests, a tax exemption allows certain income or assets, or parts of that income and assets, to be exempt from taxes.
How are property taxes calculated?
Understanding property tax exemptions starts with understanding how these taxes are calculated, and it all begins with the assessment.
How to qualify for a tax exemption
Of course, there are rules that qualify you for all these tax exemptions, and the first of these rules is your age. As is known, these exemptions are usually reserved for those who are 65 years old or older. At least one spouse must be 65 years old if you are married and own the property jointly.
States that offer property tax exemptions
Many states and cities give special consideration to seniors when it comes to property taxes, but some are more generous than others. New York, Anchorage, Honolulu, and Houston are among the most generous.
Can you claim multiple tax exemptions?
Almost all states offer more than one type of property tax exemption. Sometimes it is possible to combine your property tax exemption with other exemptions available in your area to help control your tax bill.
Best overall states for property taxes in 2020
A significant tax exemption can be beneficial, but you might receive almost the same relief as someone living in a low property tax area with a modest exemption if property tax rates and home values are extremely high in the area where you live.
Conclusion
Of course, property tax calculations cannot be considered suitable for everyone. It all depends on where you live. It’s always best to check with a tax assessor in the area where you own property so you know exactly what is offered there and how you can qualify. And remember that these rules can change annually.
Frequently Asked Questions
What are property taxes?
When are property taxes due?
Source: https://www.thebalancemoney.com/property-tax-exemptions-for-seniors-4175584
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