How Can You Reduce Your Property Taxes?

February 2016

 

For those of you that may not know, Idaho offers a property tax exemption on owner-occupied homes that serve as the owner's primary residence.  The county assessor develops an estimate for your property based on what a buyer might reasonably pay if it were to sell on January 1st of the current year.  This amount is called your “tax assessed value” and is what your taxes are based on.  The exemption is offered on half the tax assessed value up to a maximum amount that is recomputed each year by the Idaho State Tax Commission based on the federal Housing Price Index.   For 2016, the maximum exemption is $94,745.  This means that if your home has a tax assessed value of $150,000, you would only be taxed on $75,000 (1/2 the tax assessed value).  If your home has a tax assessed value of $300,000, you would only be taxed on $205,255 ($300,000 minus the maximum exemption of $94,745).  As you can see, no matter what the tax assessed value of your property, the savings from the tax exemption is quite significant. 

 

 

 

 
Applications for the homeowner’s tax exemption must be submitted prior to April 15th. You only need to file the application once.  After your application has been approved, the exemption is good for as long as you own the home and occupy it as your primary residence.  When you sell, the new owner must submit a new application in order to receive their exemption.  And, when you purchase a new home, you must make sure to apply for the exemption on you r new property!   The applications can be submitted online HERE!  Make sure to get a receipt when you file, as applications have been lost before and the only proof of filing is your stamped receipt!
 

Another tax reduction, called a circuit breaker, is also available for those who meet the low income requirement and fit one of the following categories:

  • Age 65 or older
  • Widow(er)
  • Blind
  • Former POW
  • Fatherless or motherless minor
  • Qualifying disabled person

This application can be printed HERE!
 

Find out more about your property taxes at AdaCounty.ID.gov/Assessor