After purchasing a house, you grow accustomed to paying whatever tax bill your local government sends you. You may assume that your bill is set in stone. However, your taxes can easily change, and you may be able to lower property taxes on your home.
The reality is that you can fight city hall or your county, which puts the tax bill together. There are a few ways to lower that bill and potentially save money each year.
“It’s a big myth that you can’t get your tax bill lowered,” says Pete Sepp, president of the National Taxpayers Union & NTU Foundation in Washington, D.C. “And that myth is exacerbated by so many people who just make a big monthly payment to their mortgage company that includes their property taxes.”
Sepp said most people never pay attention to what they really are paying in local property taxes. They first open up the tax bill, then realize that the mortgage company pays their tax bill, he adds. Of course, they have been paying that bill monthly with their mortgage payment.
“People never really question the assumptions that went into that bill in the first place that are reflected in their mortgage payments,” Sepp says.
Errors in property taxes can be common
Assessment errors can leave you with a tax bill that is too high. Many times, it starts with the original information given to the city or county about the property.
Assessors usually value homes with one of two systems. One compares your property to other local properties, and the other is a replacement cost system.
For example, with the comparable sales system, the assessors may see that homes in the same area sold for $120,000. They then assess your home at that value.
But the assessors don’t take into account any specifics that could increase or decrease the value of your property.
“This is an example of inaccuracies or an oversimplification,” Sepp says. “This is something you will be able to challenge by reviewing your property card.”
Sometimes, the information is available online. Other times, you will have to go to your local assessor’s office to get the information. It is public information, plus it is your property.
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Ways to lower property taxes on your home
1. Study your property tax card
This card shows the lot size, room sizes and fixtures in the house. In addition, it lists other information about improvements or special features. Mistakes happen, and the assessor can make the corrections and possibly do a re-evaluation.
As a result, this can go in your favor and potentially lower your taxes.
2. Check comparables to lower property taxes
Information about other home assessments in the area is also available to the public, sometimes for a charge.
Sepp says there can be big discrepancies from one house to another. Someone else, for instance, may have the same 3 bedroom home as you, plus a three-car garage and a swimming pool. Yet, you are paying the same tax bill without those luxuries.
3. Make an informal tax appeal
If you find that your assessment is unfair, talk with the assessor’s office about the information you have found. If the assessor doesn’t agree, then it’s time to file your formal appeal. You might want to actually attend an appeals board hearing before the board hears your case.
Just remember that every state (and jurisdiction) has different rules about real estate taxes. Plus, the rates are quite different.
Effective rates vary by state and by measurement method. ATTOM’s 2025 data put the highest average effective rates for single-family homes in Illinois (1.84%) and New Jersey (1.58%). In comparison, the national figure was 0.9%.
4. Check which property tax exemptions you qualify for
You might qualify for exemptions that drop your tax bill, too. Here is a list of different qualifications to get a cut or even eliminate all of your real estate taxes:
- Seniors: Many states offer reductions in property taxes. For instance, Washington reduces property taxes for homeowners age 61 or older who have a qualifying income. They must also own and live in the home, according to the state’s Department of Revenue.
- Renovations: Some states let cities offer a temporary property tax exemption for improvements to older homes. Ask your city or county assessor what is available.
- Veterans: Nationwide, states are lessening the property tax burden on qualified disabled veterans and veterans or their widowed spouses. In fact, some states waive all the taxes for disabled veterans. Check with your local taxing authority on what benefits can come your way as a veteran.
- Renewable Energy Systems: Some states exclude the value of your green improvements from your real estate assessment. Examples include geothermal heat pumps and solar panels. Look for what tax breaks you can get in your local jurisdiction on the Database of State Incentives for Renewables & Efficiency.
- Homestead: Homestead can mean a lot of things. For example, you may get a tax break if the home is your primary residence. It can also mean a drop in your tax bill because of your income level. Check with your local assessment office on the type of homestead exemptions available.
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