How is property tax determined?

How is property tax determined on a home?

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Have you ever wondered why there are big difference on property taxes between two homes on a same block?

The tax amount is one of the factors that could really impact your monthly mortgage, so it is important that you know the the average / reasonable taxes in the area, as well as knowing the tax history of the property you choose. 

What are some of the factors that impacts the property taxes? 

  • Tax exemptions 
    • Whether if the current owner has any special tax exemptions (such as senior exemptions) could impact the tax amount.  Also, whether if the owner has historically acclaimed for lower taxes may be another factor.  It is very important to have your lender to check what type of tax exemption may/may not apply for the home. 
  • Value per sq. ft
    • Even if 2 homes may look the same from the outside, the type of structure, updates, sizes, etc., could be very different, that could impact the value per sq. Ft of a home. 
  • Special assessments 
    • Whether if the city has applied special assessment taxes on a home for special projects (such as new pavement) could also impact the taxes; This can get very tricky, so it is very important to check ahead if a home is subject to special assessments. 
  • Type of models 
    • Type of models of a home, such as the value per sq. ft could also impact the taxes. 
  • School districts 
    • School district can be different between one side of the street to the other, that could impact the taxes. 
  • Zoning 
    • What type of tax rules has been applied by developer, city or government could also impact the tax amount.

Once again, taxes are one of the largest factors which could impact your monthly mortgage, so I strongly recommend that you search for a home based on the PRICE & TAXES to make sure your mortgage will be within your affordable range.

Any questions?  Please feel free to reach out to me! 

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