How to Save Money on Your Property Tax

AP Community
Written by AP Community

The government assesses property taxes by checking the value of your property. The state generally allocates the income from this real estate tax to support local services and projects.

Although these services and projects benefit all the citizens, property taxes can be troublesome for many homeowners since they generally increase over the long haul.

Even after you fully settle your mortgage, you will still need to pay taxes. As long as you own a house or any plot of land, you can never avoid property tax.

Fortunately, there are a couple of easy steps you can use to lower your expense in property tax.

Review Your Property Tax Card for Errors

Your house’s tax card contains data like your house’s value, square footage, and the number of rooms inside.

In short, it is your property’s official record. However, tax cards regularly have errors.

Get a duplicate of your tax card from the district assessor’s office and carefully analyze it.

If you find irregularities like an error in the room listing, bring it up to the assessor and request a reconsideration of your property tax.

Apply for Senior Citizens’ and Disabled Persons’ Property Tax Relief

The government offers a project that assists seniors and individuals with disabilities to pay less to no property charge.

Tax assessors lower your tax by evaluating the kind of property you own or occupy. You need to avail yourself of senior care property tax relief each year.

According to the General Taxation Area, the GNWT gives a 100% discount to residents who qualify for the program.

In the Municipal Taxation Areas, municipalities are accountable for the program. You’ll have to ask your local government to know more about the program that applies to you.

Make Payments with Your Mortgage

A lot of financial organizations permit you to incorporate your property taxes in your mortgage installment. The bank then deposits that cash in a different tax account and remits it when your installment is due. 

The advantage of this strategy is that it’s automatic and generally works as an extension of your mortgage payment.

Thus, the tax payment won’t deduct extra cash from your financial balance. On the off chance that there isn’t sufficient cash inside your tax account, the bank will still settle the bill.

If you opt for your mortgage lender to settle property tax payments instead, ensure that they consistently make the installments on time. Once payments are behind schedule, taxing officials typically charge a fee.

If your mortgage lender misses an installment, ensure that they do not set the late fee into your account. 

As the Real Estate Settlement Procedures Act states, mortgage lenders are liable for any charges that result from failure to pay property tax bills on time.

Apply for Federal Property Tax Deduction

The Internal Revenue Service permits property holders to lower property taxes on government income tax filings regardless if they decide not to list their deductions.

Parts of property tax bills that include special evaluations aren’t deductible.

These appraisals are for services like the development of neighborhood walkways and local trash collection.

Compare Prices with Neighbors

You don’t have to ask your neighbors how much they are paying in their property tax bills.

You can compare property tax data for your house and other properties to information of properties similar to yours in the district tax office.

Ensure your comparison is dependent on parameters such as:

  • Size
  • Bathroom Count
  • Bedroom Count
  • Acreage around the house
  • Garage/No garage
  • Year of house construction
  • Premium views (e.g., view of the mountains, a lake, ocean, etc.)

If your research indicates that you are paying significantly more than homeowners around you with similar properties, you can use this information to back your appeal for a tax re-evaluation.

Appeal Your Tax Bill

If you’ve done everything you can and you’re still unsuccessful in getting your tax evaluation office to reevaluate your property tax, don’t worry.

You have another available alternative: the tax appeal. 

Submitting a tax appeal will cost you a small filing charge, which you will pay to get someone to assess your request.

The tax appeal typically needs the assistance of an attorney. Your lawyer will likely charge you an expense that is usually a portion of the money you acquire once your request receives approval.

You need to file your appeal as soon as possible, or else you’ll have to make do with the bill your local tax office charges you.

Your attorney will handle the process of the appeal, including the data the assessor requires. You may have to take photographs and give details on your property’s present state in some cases.

After, the board will review the data you provide and compare it with the latest evaluation and tax bill before settling on a decision.

You can receive the decision within days, or you could receive it in a couple of months, depending on how long it takes for the analyst to settle on a decision.

If the board accepts your appeal, it will only lower your house’s evaluation and not your immediate tax rate. 

Even though tax authorities will charge you at a similar rate, it will still bring about a decrease in your tax bill.

Remember, however, that the appeal process isn’t an assurance that your tax amount will drop.

In fact, it might stay the same, or, in uncommon cases, it might increase if the analyst deems your appraisal is excessively low.


It tends to be challenging to balance the want for owning a beautiful home with the need to pay as little tax as possible.

Nonetheless, there are some easily overlooked details you can do to diminish your property tax without turning your house into a dump.

A bit of research and effort can lead you to lower your expense on property taxes.

About the author

AP Community

AP Community

Accounting Path community writers are passionate financial & businesses thought leaders eager to share their experience & ideas. Please note, community articles may contain links to products or services which we do not formally endorse and/or for which we may receive compensation.