New homeowners are often surprised by how many financial obligations come with buying real estate. In addition to monthly mortgage payments, property taxes can also significantly impact your finances. Fortunately, it may be possible to reduce your tax bill by taking a few simple steps and working with an accountant. Use this helpful guide on lowering property taxes to get started. 

How Are Property Taxes Determined?

If you own real estate, you are responsible for paying property taxes. Municipalities calculate these obligations by multiplying the effective tax rate by the property’s most recent appraisal value.

However, since governments only perform these assessments sporadically—in Texas, for example, counties are only required to appraise property once every three years—they can be fairly inaccurate. As such, there may be some wiggle room when it comes to your property tax obligation. 

How Can I Reduce My Property Taxes?

If you think your home’s appraisal is inaccurate and you overpaid on property taxes last year, request a copy of the assessment for this year before you receive the actual tax bill and review it closely. Addressing issues preemptively is much easier than resolving them after you’ve been billed. If you notice any inaccuracies, an accountant can contact the assessor’s office on your behalf to straighten them out. 

If properties in the area similar to your own were appraised at a lower value, you might also have a case for lowering your tax obligation. Hold off on any major home improvements until after a new appraisal has occurred. Even something as simple as repainting the house’s exterior could increase its curb appeal and, subsequently, its property value.

Finally, during the reassessment, let the appraiser actually walk through your home so he or she won’t simply make assumptions about the condition of the property’s interior. If the assessment doesn’t come back in your favor, you may file a tax appeal as a last resort.

For help managing your property taxes, turn to Donna Sellers CPA in Brownfield, TX. For more than two decades, this financial professional has been helping individuals and small businesses navigate tax law, reduce their obligations, and maximize all available deductions. Donna is a member of both the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants. To learn more about the tax guidance she provides, visit the website. To make an appointment, call (806) 637-8556.