What are Property Taxes?
Property Taxes are a levy or tax imposed by a municipality (city, town, or county) on real estate and personal property. The amount of tax varies depending on the property value.
Property taxes are an annual tax that local municipalities collect each year, based on the assessed value of your property (not on the appraised value of your home). These funds help pay for services that benefit the community, such as schools, roads, maintenance, etc.
First-time homeowners often forget to factor property taxes into the overall cost of their new home, which can come as a nasty shock come tax season. So let this be a reminder to all homeowners to calculate property taxes into their annual budget!
💰 BONUS TIP: If you own a rental property, your property taxes may be tax-deductible 💰