Many people pay there property taxes in the tax year and claim there taxes on their income taxes for that year. For example, the year 2007, you receive your property tax bill in December and pay the tax immediately. You can then claim the property taxes on your income tax. If your wait until January of 2008, you will have to claim the property taxes for 2008. There are different reasons for paying your taxes right away and there are reasons for waiting until the following year. Deciding when to pay your taxes may be determine by thinking about your current tax liability.

Now, this may be different for every state, therefore you need to read your homestead form very closely. Some states may require that the property tax is paid and some may not require proof of payment.

Are you entitled to a property tax reduction?

If you bought your house for $79,000 dollars nine years ago and have never done any work or repairs, is your property still worth the assessed value of $106,000? More than likely, the property is not worth that much for a home built in the early 1900’s. To be honest with yourself, you have to look at other houses with the same age and structure to see if you are paying to much money for property tax.

The best way to find the true value of your property is to have an appraiser come in, do a full inspection, and give you a report. If this report shows your property is lower than the assessed value and the fair market value, you have something to present to a taxing committee. If you avoid doing this, trying to sell a property that is over exaggerated in price is not going to be easy and when they see the property taxes, potential buyers could decide this is a bad deal.

If you need to apply for a hardship exemption in your state, you must find out the specifics that are required to obtain an exemption. Hardship exemptions are not given to everyone and some states may not offer this service. The hardship exemption may qualify you for a partial exemption or total tax exemption. Your local community however determines this.

Seniors can apply for a tax deferral specified by the community that they reside in at the time. This tax deferral program gives you more time to pay your property taxes. You do need to meet certain income guidelines and age requirements. Seniors who wish to utilize this tax deferral must talk with the taxing committee and fill out the application. There are also exemptions for property taxes allowed to permanently disabled homeowners. The guidelines for this situation do vary between states, and you need to check with the county clerk for the guidelines and application process.

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