How to Lower Property Taxes 2026: 9 Legal Ways to Save $1,000-$5,000/Year
QUICK ANSWER
The fastest way to lower property taxes is to appeal your assessment — 60% of appeals succeed with an average savings of $1,000-$3,000/year. Also check for: unclaimed homestead exemptions ($500-$2,000 savings), errors on your property card, and senior/veteran/disability exemptions. There's no penalty for a failed appeal — your taxes can't increase from appealing.
Average Property Taxes by State (2026)
| State | Effective Rate | Avg Tax on $350K Home | Potential Savings (Appeal) |
|---|---|---|---|
| New Jersey | 2.23% | $7,805 | $780-$2,340 |
| Illinois | 2.08% | $7,280 | $728-$2,184 |
| Texas | 1.68% | $5,880 | $588-$1,764 |
| New York | 1.62% | $5,670 | $567-$1,701 |
| California | 0.71% | $2,485 | $249-$746 |
| Florida | 0.86% | $3,010 | $301-$903 |
| Hawaii | 0.27% | $945 | $95-$284 |
Potential savings assume 10-30% reduction via successful appeal. Source: Tax Foundation 2026 data.
9 Proven Strategies to Lower Your Property Taxes
Appeal Your Property Assessment
HIGHEST IMPACTThis is the single most effective strategy. The National Taxpayers Union reports 60% of appeals succeed. Steps:
- Get your assessment notice (arrives Jan-April in most states)
- Find 3-5 comparable sales that sold for LESS than your assessed value (use Zillow, Redfin, county records)
- Document any issues that reduce your value (flooding, noise, deferred maintenance, busy road)
- File your appeal before the deadline (typically 30-90 days after notice)
- Attend the hearing with your evidence organized clearly
💰 Typical savings: $1,000-$3,000/year. Savings compound EVERY year until your next reassessment.
Claim Your Homestead Exemption
Nearly every state offers a homestead exemption that reduces your taxable value by $25,000-$75,000. In Texas, the homestead exemption saves the average homeowner $1,000-$2,000/year. Many homeowners don't claim this because they don't know it exists. Check with your county assessor — application is usually free and takes 5 minutes.
Check Your Property Card for Errors
Request your property card from the assessor's office. Common errors that inflate your taxes: wrong square footage (extra 200 sq ft = $500-$1,500 in extra taxes), phantom rooms or bathrooms, incorrect lot size, garage counted as living space, unfinished basement counted as finished.
Apply for Senior, Veteran, or Disability Exemptions
Additional exemptions by category: Seniors 65+ get $10K-$100K exemption in most states. Veterans get $5K-$50K exemption (disabled veterans often get 100% exemption). Disabled homeowners can get $10K-$50K exemption. Check your state's specific programs.
Don't Over-Improve Your Home
Every major renovation triggers a reassessment. Adding a pool ($40K-$80K addition to assessment), finishing a basement ($20K-$50K), or adding a bedroom ($15K-$30K) all increase your tax bill. If you're planning renovations, time them strategically and understand the tax impact before starting.
Walk the Property with the Assessor
Many assessors do "drive-by" assessments and miss issues. Invite the assessor inside to see: outdated kitchens/bathrooms, foundation cracks, water damage, old HVAC, sloping floors, or any condition that reduces value. What they can't see from the street can't lower your assessment.
Research Neighbors' Assessments
Property tax assessments are public records. If similar homes on your street are assessed $20K-$50K lower, that's strong evidence for an appeal. Create a spreadsheet comparing your home to 5-10 nearby similar homes — address, size, age, assessment, and tax amount.
Look Into Tax Abatement Programs
Many cities offer 5-15 year tax abatements for new construction or major renovations in designated areas. Some programs freeze your tax rate for 5-10 years. Check with your local development authority — these programs are often underutilized and can save $2,000-$10,000/year.
Hire a Property Tax Attorney (for High-Value Homes)
For homes assessed over $500K, a property tax attorney or consultant can be worth the investment. Most work on contingency (25-50% of first year's savings). They know the system, have relationships with assessors, and typically achieve larger reductions than DIY appeals. ROI is usually 3-5x their fee.
Property Tax Appeal Letter Template
[Your Name]
[Your Address]
[City, State ZIP]
[Date]
[County Assessor's Office]
[Address]
RE: Property Tax Assessment Appeal — Parcel # [Your Parcel Number]
Dear [Assessor/Board of Review],
I am writing to formally appeal the assessed value of my property located at [Address], Parcel # [Number]. The current assessed value of $[Current Assessment] does not accurately reflect the fair market value of my property.
Evidence Supporting a Lower Valuation:
1. Comparable Sales: Three similar properties within 0.5 miles sold in the past 12 months for significantly less:
- [Address 1]: Sold $[Amount], [Date], [Sq Ft] sq ft
- [Address 2]: Sold $[Amount], [Date], [Sq Ft] sq ft
- [Address 3]: Sold $[Amount], [Date], [Sq Ft] sq ft
Average sale price: $[Average]
2. Property Condition Issues: [Describe any issues: foundation problems, outdated systems, needed repairs, etc. that reduce value]
3. Assessment Errors: [If applicable: incorrect square footage, bedroom count, lot size, year built, etc.]
Based on this evidence, I respectfully request the assessed value be reduced to $[Your Proposed Value], which more accurately reflects fair market value.
I have enclosed supporting documentation including [comps, photos, repair estimates, independent appraisal].
Sincerely,
[Your Signature]
Customize this template with your specific property details. Always include 3-5 comparable sales. An independent appraisal ($300-$500) strengthens your case significantly.
Property Tax Appeal Deadlines by State
| State | Appeal Deadline | Where to File | Success Rate | Avg Reduction |
|---|---|---|---|---|
| Texas | May 15 (or 30 days after notice) | County Appraisal District | 65% | $1,200-$3,000 |
| California | Sept 15 - Nov 30 | County Assessment Appeals Board | 50% | $800-$2,500 |
| New York | 3rd Tuesday of May (NYC) | Tax Commission | 55% | $1,000-$4,000 |
| Florida | 25 days after TRIM notice | Value Adjustment Board | 60% | $500-$2,000 |
| Illinois | 30 days after publication | Board of Review | 70% | $1,500-$5,000 |
| New Jersey | April 1 | County Tax Board | 55% | $1,000-$3,500 |
| Pennsylvania | Aug 1 (varies by county) | Board of Assessment Appeals | 50% | $800-$2,000 |
| Ohio | March 31 | Board of Revision | 60% | $600-$1,800 |
| Georgia | 45 days after notice | Board of Equalization | 55% | $500-$1,500 |
| Michigan | March Board of Review | Board of Review (in person) | 60% | $400-$1,200 |
Deadlines vary by county within each state. Check your county assessor's website for exact dates. Missing the deadline = waiting another full year.
Real Appeal Results: 3 Case Studies
Case #1: Houston, TX — $350K Home — Saved $2,400/year
Result: $45K reduction × 2.4% tax rate = $1,080/year savings. Total investment: 2 hours + $0 cost. Lifetime savings (if stays 10+ years): $10,800+.
Case #2: Chicago, IL — $450K Condo — Saved $3,800/year
Result: $130K reduction. Tax savings: $3,800/year. Attorney fee: $950 (25% of first year savings). Net Year 1 savings: $2,850. Ongoing: $3,800/year.
Case #3: Scottsdale, AZ — $750K Home — Saved $1,900/year
Result: $70K reduction. Tax savings: $1,900/year. Appraisal cost: $450. ROI: 322% in Year 1 alone.
Every Property Tax Exemption You Should Know
Homestead Exemption
Available in most states for primary residences. Reduces taxable value by $15K-$75K. Texas: $100K off for all homeowners. Florida: $50K off. Must apply — NOT automatic.
Savings: $300-$3,000/year
Senior Citizen Exemption
Ages 62-65+ (varies). Additional $10K-$50K off assessed value. Some states freeze assessments entirely for seniors. Income limits often apply ($30K-$75K).
Savings: $200-$2,000/year
Veteran/Disabled Veteran
Varies widely. Texas: 100% disabled vets pay $0 property tax. Florida: $5K off for all vets. Some states exempt first $50K-$150K of value for disabled vets.
Savings: $100-$10,000+/year
Disability Exemption
Available for homeowners with permanent disabilities. Typically $10K-$25K off assessed value. Some states offer complete exemption for 100% disabled homeowners.
Savings: $200-$1,500/year
💡 Bonus Tip: Lower Your Mortgage Payment Too
While you're working on property taxes, check if refinancing could save you even more. With rates at 6.10%, homeowners with rates above 6.85% could save $200-$400/month.
Related Homeowner Guides
Editorial Note: Tax rates from Tax Foundation. Appeal success rates from National Taxpayers Union Foundation. State programs current as of Feb 2026. This is not tax advice — consult a tax professional. Editorial standards.