Depending on the area where you live, your new home is subject to annual property taxation by your local appraisal district to pay for schools, infrastructure, and other public needs. But what you may not realize is that the rate you pay may be wildly different from your neighbors.
If you just purchased your home, your assessment for the following year is likely to be higher than it is now, so you can’t count on paying the same amount in escrow you’re paying now.
According to BankRate.com, property taxes are assessed by:
- Most recent assessed value or sales price of the home.
- Value of comparable homes in the area.
- Improvements that enlarged or added value to the home, such as an addition requiring a permit or a swimming pool.
- Exemptions for which the home or homeowner qualifies, such as homestead, disabled veteran or senior status.
- Applicable property tax rate set by the local taxing authority.
Other factors include how often your taxing authority reassesses your property, how often it can raise rates, and by what percentage. Plus, the appraisal district can raise rates based on changing market conditions.
To find out what tax rates are in your area, visit SmartAsset.com.
In Virginia, you may be able to qualify for significant exemptions if you are classified as a disabled veteran. Contact me for more information!