If you’re exploring new home options, you’ve probably come across the term tax abatement—but what exactly does that mean, and how could it benefit you as a homebuyer?
Let’s break it down in simple terms.
What Is a Tax Abatement?
A tax abatement is a temporary reduction or elimination of property taxes. Local governments use them as an incentive to encourage development in certain areas, which can make a big difference in your monthly housing costs.
In many cases, a tax abatement can reduce or freeze your property taxes for 5, 10, or even 15 years. That’s real money back in your pocket—money that can go toward decorating your dream kitchen, building a backyard oasis, or simply saving for the future.
How Do Tax Abatements Work?
Here’s how a typical tax abatement works:
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When you buy a home in a designated abatement area, the local government agrees to lower your property tax bill.
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The length and terms of the abatement vary by location, but often they cover new construction homes in developing neighborhoods.
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At the end of the abatement period, your property taxes adjust to the standard rate based on the full assessed value of the home.
Why Do Cities Offer Them?
Tax abatements help communities grow. By making it more affordable to move into up-and-coming neighborhoods, cities encourage homeownership, revitalization, and local investment. It’s a win-win for both the city and the homeowner.
What Does This Mean for You?
If you purchase a new home by Thrive in a tax-abated area, you could:
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Pay significantly less in property taxes for the first several years.
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Enjoy lower monthly mortgage payments.
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Build equity in a growing neighborhood.
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Invest in a brand-new home with modern features and energy efficiency—often with a lower total cost of ownership than an older home without a tax break.
The Bottom Line
Tax abatements are one of the most powerful financial perks available to new homebuyers—but they’re often underutilized because buyers simply don’t know about them.
At Homes by Thrive, we’ll walk you through whether any of our homes qualify for tax abatement programs and how to take full advantage of them. It’s just one more way we help you thrive in your new home with confidence and clarity.
Be Part of Something Special
Are you ready to discover what makes a Homes by Thrive community different? Whether you’re searching for your first home, your forever home, or simply a place where life’s best moments can unfold, we invite you to explore [Our Homes] and discover how thoughtful design brings every community to life.
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Thrive Companies is a Columbus, Ohio-based real estate development and property management firm specializing in creating vibrant, walkable communities that integrate residential living with local amenities like coffee shops, gyms, and parks. Thrive is known for remediating forgotten land and transforming underutilized spaces into thoughtfully designed neighborhoods that emphasize sustainability, community engagement, and high-quality living experiences.
The company manages a diverse portfolio of apartments, mixed-use developments, and new home construction under Homes by Thrive while also overseeing food & beverage concepts like Bada Bean Bada Booze and The Little Grand Market. Thrive prioritizes innovative urban planning, flexible leasing options, and resident-focused incentives, such as the Thrive Card loyalty program, to foster long-term community connections.
