These Property Tax Exemptions Could Save Home and Business Owners
Standard federal tax deductions and state and local exemptions can save homeowners and business owners thousands of dollars each year. Both types of deductions provide unique savings for specific groups of individuals who are entitled to benefits.
Tax exemptions give taxpayers the right to subtract some portion of their income to reduce their federal and state tax liability. Individual taxpayers can use exemptions to shelter a portion of their income or reduce the value of their property tax that is owed on personal property. When taxpayers are business owners, exemptions can significantly reduce taxable income and even completely wipe out taxes for certain businesses and non-profit organizations. For individuals who are already tied to costly mortgage payments and insurance coverage for accident protection, property tax exemptions can provide relief.

Standard and Itemized Deductions
Individual taxpayers can choose to claim a standard deduction or itemized deductions to reduce their tax liability each year. The difference between standard and itemized deductions comes down to simple math. While a standard deduction lowers income by a fixed amount, itemized deductions include a list of eligible expenses. Taxpayers can claim whichever provides the lowest tax liability.
In 2021, the standard deduction for single taxpayers and married couples filing separately increased to $12,550; for heads of households $18,800; and for married couples filing jointly $25,100. Most taxpayers who do not own property or have major expenses claim standard deductions. For others, itemizing deductions can provide benefits if the following conditions exist:
- Itemized deductions total more