Property taxes are a major expense for most homeowners and would-be buyers, but property tax abatement programs can help. While not offered everywhere, many states, counties and cities offer abatement programs to alleviate this expense in several ways. Here is a short guide to property tax abatement to familiarize yourself with the basics:
Property tax abatement programs can help with the cost of property taxes. As you add equity to your home with remodeling, new construction or major improvements, your property taxes increase. A property tax abatement can reduce this taxed amount and sometimes eliminate it completely.
You will still need to pay property taxes based on the home's value before the improvements, but this can save you a significant amount of money long-term. It can also help you afford to improve a property without suffering the tax consequences.
Property tax abatement programs can save you a bundle on taxes, but there can be some disadvantages. For example, neighborhoods and properties with abatements may not have as high a demand as those without. Also, since abatements don't last forever, you can face a steep increase in your property taxes once it's over. Another drawback of property tax abatement is increased risk if you fall behind on paying your taxes, as the abatement can be canceled if you fail to make payments on time.
Regardless of whether you're buying or selling a home, knowing the basics about property tax abatements can help you make more informed financial decisions. Keep these things in mind when considering your options and find out the details of your local tax abatement opportunities.
Hi, I am Debra Calnan, I have been an active member of my community for over 30 years and I am so excited to be turning that community focus toward Real Estate. My decision to enter the field of Real Estate evolved from a life long love of helping others and a desire to be part of a business that helps guide them through one of the biggest investments of their lives. I enjoy helping people Sell their home and Buyers find the right home and guide them through the process to make those dreams become a reality.
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