Coldwell Banker Riviera Realty
Joanne M. Platz, Coldwell Banker Riviera RealtyPhone: (908) 278-2750
Email: [email protected]

Property tax abatement: The basics

by Joanne M. Platz 08/01/2022

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

Joanne M. Platz

Live the good life at the Jersey Shore!  Joanne Platz is a real estate broker-sales associate with Coldwell Banker Riviera Realty, Inc.  She has over 30 years of real estate experience & expertise personally serving buyers, sellers and investors.  She welcomes an opportunity to be “Your New Jersey Shore Real Estate Guide.” Contact Joanne for a successful conclusion and guidance in accomplishing your real estate goals and objectives.  Come and enjoy the good life at the Jersey Shore!