Did you know property taxes in the U.S. bring in over $500 billion a year? This money helps fund important local services like schools and emergency teams. As a homeowner, it’s key to know how to handle these taxes, with deadlines coming up fast.
Property taxes are due in October, and the last payment is due by January 31st. It’s important to find ways to cut down on these taxes. This guide will help you understand how to get property tax relief, find exemptions, and use home tax deductions for 2024. You’ll learn how to save a lot on real estate taxes. Let’s explore how to keep your money safe at home.
Key Takeaways
- Understanding exemptions can significantly reduce assessed property values.
- Abatements provide tax reductions after assessments are calculated.
- Credits can offer direct savings and refunds on property taxes.
- Programs like STAR can lower taxes for qualifying homeowners.
- A detailed review of local property assessments can uncover savings opportunities.
- Properly filing for exemptions before May 1 can lead to tax relief.
Understanding Property Tax Relief Programs
Property tax relief programs help homeowners who struggle with high property taxes. They offer exemptions, abatements, and credits. These options can greatly reduce what homeowners pay in property taxes.
Exemptions: Reducing Assessed Values
Exemptions are a key part of these programs. They lower a property’s assessed value. This means homeowners pay taxes on a smaller amount, saving money.
The Homestead exemption is a big help for many. It offers significant savings, no matter your income level.
Abatements: Post-Calculation Tax Reductions
Abatements reduce taxes after they’re calculated. They help homeowners save by lowering their tax bill. Many places have abatement programs for those facing hard times, like foreclosure.
These programs aim to ease the financial strain of rising taxes.
Credits: Direct Savings and Refunds
Credits give homeowners direct savings. The property tax relief credit used to be available, but it’s no longer. Yet, if you meet certain income and tax criteria, you might be eligible for credits from 2018 and 2019.
Eligibility Criteria for Tax Relief
Exploring property tax relief programs is key to saving money. Knowing the income needs and available programs helps me choose wisely. Each program has its own rules, so it’s important to look at them carefully.
Income Thresholds and Requirements
The STAR program has two main parts: Basic and Enhanced exemptions. Basic STAR is easy to get if you own your home. Enhanced STAR is for seniors, with some exceptions for married couples or siblings.
To qualify, your income must be under certain limits. For Basic STAR, it’s $500,000. For Enhanced, it’s $250,000. In 2025, your total income with all owners and spouses can’t be more than $107,300.
STAR Program: Basic vs. Enhanced Exemptions
Understanding the STAR program is vital. Basic STAR is open to many homeowners, but Enhanced is for seniors. Surviving spouses can keep their Enhanced STAR if they’re over 62.
For properties in trust, you must be a trustee or co-trustee with the right interest. You’ll need to submit a notarized trust copy and beneficiary schedules. Knowing these details helps me prepare and get the tax relief I need.
