Ever wonder how property taxes get calculated?
Most people find it very confusing, but it's just the assessed value of your home times the local tax rate.
Then any exemptions are deducted.
There are 8 types of exemptions, but I will concentrate on the 3 most common:
Homeowners, Senior, and Senior Freeze.
- Homeowners - This is an exemption you're entitled to if the home is your primary house. Many homeowners are not aware they are entitled to this. Thus never get the reduction. This exemption is auto-renewed yearly.
- Senior Exemption - This is an exemption you get once you turn 65 and the home is your primary house. This exemption is auto-renewed every year.
- Senior Freeze - Most homeowners are eligible for this exemption if they meet the requirements for the Senior Exemption. You also must have a total household annual income of $65,000 or less in the calendar year. This exemption does not auto-renew. You have to file this every year.
Taxes are paid twice a year. The exemptions get deducted from the 2nd bill of the year.
Sometimes people notice they are paying a much higher tax bill than their neighbors. In this case, you would want to appeal your taxes.
Or check and make sure you are receiving all your eligible exemptions.
If you decide to appeal, you can do this yourself or hire an attorney who specializes in tax appeals.
If you live in a condo building. They usually will appeal the taxes on behalf of all the homeowners in the building.
It’s important to keep an eye on your tax bills. You can save a lot of money by applying your eligible deductions. Or, if necessary, filing an appeal.
