While home prices are still low, property taxes have reached breaking point across the country. Many local governments have increased property taxes in an attempt to offset declining revenue.

According to The Tax Foundation, 3.5 percent of household income went to pay property taxes in 2009, up from 2.9 percent in 2005. Clearly, this is not good news for homeowners. . Fortunately, there are ways to reduce your property taxes.

There are a multitude of state, county, and municipal property tax relief programs available to homeowners. Although these tax relief programs vary, they generally target categories of people who have the greatest financial burden.

Under the relief program, a property owner may qualify for a tax refund, tax credits, a tax deferral, a ‘freeze’ of taxed property value, a homestead exemption, or an installment payment plan. of property taxes.

Senior Programs

Most states offer assistance programs for homeowners 65 and older. Some of these programs may be based on a person’s income and marital status.

The state of Illinois offers more than one tax relief program for seniors. The state’s exemption from the senior assessment freeze “freezes” the equalized assessed value of the property of a senior who meets the income requirements of the program, so their taxes never increase due to inflation.

The Illinois Senior Citizen Homestead Exemption provides a $3,500 reduction in the equalized assessed value for a primary residence if the property owner is age 65 or older.

The Senior Citizen Real Estate Tax Deferral Program allows senior homeowners within specific income limits to defer some or all of their real estate taxes. The state pays the taxes for which you will receive a refund at 6 percent interest upon the owner’s death, or if the property is sold or transferred.

Disability Programs

Tax relief programs are also available for people with disabilities. Disability determination requirements may vary by state. Often the tax relief programs available to seniors are also available to people with disabilities.

Missouri, for example, gives the same tax credits to the totally disabled as it does to the elderly, a maximum of $1,100 to homeowners if their home was also their primary residence.

Veterans Programs

There are a variety of different state property tax relief programs for veterans and their surviving family members. Some of these programs require that the veteran be disabled or have served during the war.

Texas offers various tax relief opportunities for disabled veterans based on their determined percentage of disability.

Veterans who have a VA rating of 100 percent disabled, or have been classified as unemployed, are eligible to receive a 100 percent homestead exemption if their property is also their primary residence. The 100 percent homestead exemption also applies to their surviving spouses after the veteran’s death.

Veterans who are not 100 percent disabled, but do have some level of disability, are allowed an exemption amount based on their percentage of disability.

Programs for low- and moderate-income homeowners

Some states offer property tax refunds as part of their relief program. An application may be required, but rebate checks are sometimes sent automatically. There are usually maximum income and residency requirements.

New Jersey homeowners whose annual gross income does not exceed $40,000 are eligible for a property tax refund. The maximum annual income limit for disabled and senior citizens is $100,000. Rebate is based on matched home values ​​up to $45,000 and the effective municipal school tax rate.

Most property tax relief programs generally require the homeowner to meet other eligibility requirements and apply. Check with your local tax authority for details on programs available to help you reduce taxes.