When considering a home purchase, property taxes are a key element that can significantly affect your long-term budget. Homes in areas with higher taxes can lead to a substantial increase in monthly costs, so it’s essential to factor this into your financial planning. However, there are several strategies and programs designed to help homeowners save on their tax bills.
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STAR Program: One of the most well-known tax relief programs is the School Tax Relief (STAR) program, which offers tax savings to homeowners. If your income is under $500,000, you can qualify for Basic STAR, which reduces the amount you pay in school taxes. For seniors (65 and older), the Enhanced STAR offers even more significant reductions, with an income cap of $98,700. STAR can make a big difference in areas where school taxes represent a large portion of the property tax bill, so it’s important to apply for this benefit if you qualify.
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Senior and Disability Exemptions: Recent updates have made property tax relief more accessible to seniors and individuals with disabilities. The income eligibility limit was raised to $50,000, allowing more people to qualify for these exemptions. These programs can provide much-needed relief for homeowners on fixed incomes, helping to ease the financial burden of owning a home in high-tax areas.
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Energy-Efficient Home Incentives: In addition to state-level tax breaks, some municipalities offer incentives for homeowners who invest in energy-efficient upgrades. These can range from installing solar panels to improving insulation or upgrading to energy-efficient appliances. By making your home more environmentally friendly, not only do you save on utility bills, but you may also be eligible for additional tax reductions, helping you save even more in the long run.
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Veterans’ Property Tax Exemption: Veterans may also qualify for property tax exemptions, with savings varying depending on the type of service and the area. This program honors veterans by offering them tax relief on their primary residence, and the amount of relief can depend on service-related disabilities or other criteria.
Understanding property taxes and how to navigate the available exemptions and incentives can significantly reduce your financial burden as a homeowner. Be sure to check with your local assessor’s office or tax department for detailed information on eligibility and how to apply for these valuable programs. A little research upfront could lead to substantial long-term savings!