Tax abatement
A temporary reduction or waiver of property taxes, often used by cities to encourage new construction or improvements. Runs for a set number of years, then normal rates return.
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Why a seller cares
An abatement lowers the tax bill for a set number of years, and it usually transfers with the home. A listing that says how many years remain is telling buyers something real about their monthly cost.
Part 2 of 4
A simple example
Your home has a ten-year abatement with four years left, cutting taxes from $6,000 to $2,000. Buyers see the low bill, and the listing says when it ends.
| What the buyer sees | What it means |
|---|---|
| Taxes of $2,000 | The abated bill, for four more years |
| Taxes of $6,000 in year five | What their lender will estimate for escrow, eventually |
| A listing that says both | A buyer who is not surprised later |
An abatement is a discount with an end date, and the end date is part of the disclosure.
Part 3 of 4
What people get wrong
That the abatement is permanent. It runs its term and stops, and the buyer's budget has to survive the stop.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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