A Glimpse into How Property Taxes Work
Whether you are a brand-new homeowner, or you are thinking about buying your very first home, property taxes can be a little intimidating. Learning more about property tax and what affects the amount you will pay can help you make better decisions for your financial future. Visit: https://www.theestridgegroup.com/
Whether you are a brand-new homeowner, or you are thinking about buying your very first home, property taxes can be a little intimidating. Learning more about property tax and what affects the amount you will pay can help you make better decisions for your financial future. Visit: https://www.theestridgegroup.com/
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A <strong>Glimpse</strong> <strong>into</strong> <strong>How</strong> <strong>Property</strong> <strong>Taxes</strong> <strong>Work</strong><br />
Whether you are a brand-new homeowner, or you are thinking about buying your very first home, property taxes can be<br />
a little intimidating. Learning more about property tax and what affects the amount you will pay can help you make<br />
better decisions for your financial future.<br />
What is <strong>Property</strong> Tax?<br />
If you have never owned a home before, you are probably still very familiar with income tax, which is based on the<br />
amount of money you earn, and even sales tax, which is based on the amount of money you spend. <strong>Property</strong> tax is a<br />
little different as it is based on the value of your property. Your city or county government assesses property taxes to<br />
help generate the money required to operate, including money that pays for public schools, local libraries, police and<br />
fire departments, and even local roads.<br />
<strong>How</strong> Are <strong>Property</strong> Tax Amounts Determined?<br />
<strong>Property</strong> tax amounts are determined using a number of different criteria. “Real” property tax is based on the actual<br />
value of your home. In a perfect world, homeowners who own property with the same value as yours pay the same<br />
amount of property tax, and homeowners who have property that is more valuable pay more property tax than those<br />
who own less valuable property. Of course, there are other factors to consider. <strong>Property</strong> tax is more often based on a<br />
home’s market value (or a percentage) which is determined by things like features, the value of other properties in the<br />
neighborhood, and other market factors.<br />
<strong>Property</strong> Tax Exemptions<br />
Certain people may be able to claim property tax exemptions that relieve them of some or all of the liability for property<br />
tax payments. For example, elderly individuals, military veterans, or disabled persons may be able to claim at least some<br />
exemptions that will reduce their liability. There are also property tax exemptions you can receive in exchange for<br />
renovations, but these are only in some areas, and they only last for a certain period of time. Finally, you may be able to<br />
get at least some discounts for installing energy-efficient appliances and systems in your home.<br />
Are <strong>Taxes</strong> Evaluated Annually?<br />
<strong>Property</strong> tax reassessment does occur from time to time, but there is no set timeframe for every single jurisdiction. In<br />
almost all jurisdictions, the total amount the local government needs to collect in taxes is determined, and then<br />
individual properties are assessed in such a way that the taxes equal that amount. When neighborhoods remain<br />
unchanged for long periods of time, they may go several years without being reassessed. Conversely, if businesses come<br />
to certain neighborhoods, or if many homes within the same neighborhood are renovated, reassessment could occur<br />
more often.<br />
<strong>Property</strong> taxes affect almost every homeowner in the United States, and first-time buyers often feel apprehensive about<br />
this additional bill of sorts. Fortunately, the benefits of homeownership and the money saved by making mortgage<br />
payments rather than simply paying rent covers these payments and then some. You can easily find out the average<br />
property tax for any home on the market by talking to your real estate agent.<br />
For more real estate tips please visit our blog.