Understanding your Property Taxes: Homeowner Exemptions Explained

Understanding Your Property Taxes: Homeowner Exemptions Explained

The average homeowner pays $2,197 a year in real estate property taxes annually, tacking on about $183 to their monthly mortgage payment. However, the average property tax payment can be 5x higher than the average in states such as New Jersey, New York, and Illinois. View the median highest and lowest property taxes in the graph below:

Map of the top 5 highest and lowest median property tax payments in America. Find this image on blog.phmc.com

⬇️ Click each image below to download infographics ⬇️
5 Highest/Lowest Median Property Tax Counties
Lowest and Highest Median Property Taxes in America

No matter the payment size, the extra amount can still make a dent in your budget; hence why $14 billion in property taxes go unpaid each year.

For homeowners struggling to pay your property tax bill, there may be relief available for you: 

Seniors or disabled homeowners and veterans may qualify for a property tax exemption

How can the homeowner property tax exemption help me? 

Also known as the Homeowner or Homestead exemption, if qualified, this designation protects a certain amount of your home’s assessed value from being taxed, thus lowering their property tax payment. Some states also have laws into place that protects homeowners with a homestead exemption from the force sale of their home. In other words, a creditor cannot take your primary residence as collateral for unpaid debts.

How do I qualify for a homeowner property tax exemption? 

States have 2 options when offering property tax relief programs to its residents:

  1. across-the-board tax breaks for all income levels
  2. targeted tax breaks

However, majority of states (40) are offering an across-the-board approach for relief in property tax. Laws on homestead exemptions vary by state but generally have guidelines involving the residency and property type of the home, income and age of the home owner, etc. It is important to follow the guidelines for qualification for your specific state and community.

Does my state offer property tax exemptions? 

All state laws regarding property tax exemptions will vary. It is important to find information in your specific state and county. Use the links below to start on finding out if you may qualify for a property tax exemption and how to apply:

Property Tax Exemptions by State

Disabled Veteran Property Tax Exemptions

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Anthony Cummuta

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