Property tax abatement: The basics

by Sellers Group powered by Keller Williams Realty Atlanta Partners 04/21/2024

Property taxes are a major expense for most homeowners and would-be buyers, but property tax abatement programs can help. While not offered everywhere, many states, counties and cities offer abatement programs to alleviate this expense in several ways. Here is a short guide to property tax abatement to familiarize yourself with the basics:

What does property tax abatement do?

Property tax abatement programs can help with the cost of property taxes. As you add equity to your home with remodeling, new construction or major improvements, your property taxes increase. A property tax abatement can reduce this taxed amount and sometimes eliminate it completely.

You will still need to pay property taxes based on the home's value before the improvements, but this can save you a significant amount of money long-term. It can also help you afford to improve a property without suffering the tax consequences.

What are the drawbacks?

Property tax abatement programs can save you a bundle on taxes, but there can be some disadvantages. For example, neighborhoods and properties with abatements may not have as high a demand as those without. Also, since abatements don't last forever, you can face a steep increase in your property taxes once it's over. Another drawback of property tax abatement is increased risk if you fall behind on paying your taxes, as the abatement can be canceled if you fail to make payments on time.

Regardless of whether you're buying or selling a home, knowing the basics about property tax abatements can help you make more informed financial decisions. Keep these things in mind when considering your options and find out the details of your local tax abatement opportunities.

About the Author
Author

Sellers Group powered by Keller Williams Realty Atlanta Partners

Cindy has been an active Real Estate Agent since 1999 and continued as a Broker Associate in 2002.  Licensed in both the state of Georgia and Alabama, her career has always centered around the sales environment.  After several years of working in the Corporate world, Cindy decided it was time to step out and start her own business where she could make a difference and contribute to the well-being of others.  What better way than getting into real estate!