Many first time buyers don’t take into account the cost of property tax on their new home and are surprised by their first tax bill. Make an informed decision when buying a home by understanding these property tax basics.
What are Property Taxes?
Property taxes vary from home to home, and are used to pay for various government programs like schools, libraries and emergency services. Property taxes are based on the market value of the home, not the price you paid for it.
How are the Taxes Assessed?
A home value assessment is usually conducted at the time of sale by a government tax assessor. You should ask the seller when the last assessment was done and what value the home was given. Be prepared for tax assessors to stop by throughout the year, especially if you’ve made improvements to your home.
Am I Eligible for Any Deductions?
There are several deductions applicable to property tax. There are deductions for military personnel, senior citizens and energy efficient homes. Deductions vary by location so the best thing to do is talk to a real estate agent to determine your options.
You can find the annual tax due for homes you are considering purchasing on the Mel Foster website. Just look under general features in the description of the home listing.