How Much Do Property Taxes Cost

If you own a property you are liable to pay property taxes as well. Paying taxes is never pleasant and paying property tax can be especially taxing because people feel that they have enough taxes to be aggravated about such as all the federal and state income and sales taxes. However, you should know that the property tax that you pay goes towards the up keeping of the community and developing of facilities such as public schools, road maintenance etc.

The local government collects the property tax typically through an office called the country tax collector.

You are usually required to pay the property tax once or twice a year. Although if you make a down payment of less than 20%, the home loan lender is liable to ask you to pay the property tax and insurance amount to him in advance every month. He may also ask you to pay 6 months worth of insurance and property tax to be kept in an escrow account.

The amount of property tax that you pay usually depends on the value of the house and is evaluated at 1.5% of the property value. However, this value differs from different counties and states to another. In order to find out what exactly it is in your area you can call the tax collector’s office, the phone number for which can be found in the local phone directories in the government Yellow Pages section.

Another thing that you should be aware of as far as property taxes are concerned is that when looking at real estate listings, the amount or the rate of the property tax mentioned there might be outdated. The agent who has prepared the real estate listing may have calculated taxation amount based on the previous amount which may have changed since then. Before buying the property you should confirm the amount of property tax that you will have to pay.

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