Taxes are a fact of life. Property tax is a cost of homeownership. You should receive an annual property tax statement in the mail that provides information about the amount of tax you owe each year. The factors that determine your tax bill is your location and overall value of your property.You can also check your tax bill online by checking either your state or county website. The tax assessor office has more information on due dates. Property taxes aren’t just for homes. Unsecured property taxes are taxes on water crafts or airplanes. Property taxes serve the purpose as revenue for infrastructure investment . Texas has no state income tax so much of the tax revenue comes from high property taxes.If you don’t pay property taxes your home will get foreclosed.
Best Counties For Property Taxes
Many counties that have low property taxes are in the Southeast. Darlington County, South Carolina has some of the lowest property tax bills in the South. The first $100,000 of the property’s assessed value is exempt. So if you have a home worth $120,000. Your tax bill is based on $20,000 not $120,000. This is less than $1000 in property taxes.Areas may see an increase in property taxes due to population changes and investment in the area.
Worst Counties For Property Taxes
The higher income counties in New York, Texas and California. Property tax is related to the current value of your property. If you have a 2 million home regardless of where you live. You will be paying over $20,000 more in property taxes than someone with a $30,000 home.
What Increases Property Taxes
Rehabbing makes your home more attractive to buyers. However it increases your tax bill. This includes any structural improvements like a deck or a pool. Rise in area value as a result of new luxury properties or more local investments can increase property taxes.Chicago is one of the few cities in the Midwest with high property taxes . This is due to the local government increasing property taxes to pay for pension funds of city workers.Natural Disasters are notoriously costly. The government pays for the long process of rebuilding through property taxes. Taxes increased in Houston right after Hurricane Harvey. Lastly even though college isn’t free . Public Colleges gets majority of their funding from the government. More programs and more resources needed for education will increase property taxes.
There are ways to lower your tax bill or manage payments. Some regions like Chicago offer tax exemptions on the assessed value of properties. There are the homestead exemption which is up to $10,000. If you are 65 or older you are eligible for the senior citizen exemption.The most common way to lower your tax bill is challenge the tax assessment of your property.You do this by requesting your property tax card and study it. A great way to manage your tax payment is have your mortgage company pay your property tax bill. Your monthly mortgage payment can include payment to the mortgage principal and escrow amount to your property taxes.You can pay for property taxes by check or use a credit card. There is a 2-3 % fee for credit cards . However there is a benefit of points to using your credit card.