{"id":3099,"date":"2022-01-19T14:42:46","date_gmt":"2022-01-19T14:42:46","guid":{"rendered":"https:\/\/moneymakersandsavers.com\/?p=3099"},"modified":"2022-01-19T14:46:18","modified_gmt":"2022-01-19T14:46:18","slug":"property-taxes","status":"publish","type":"post","link":"https:\/\/moneymakersandsavers.com\/property-taxes\/","title":{"rendered":"What Are Property Taxes?"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_55 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6617dde063a1b\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #4ff74c;color:#4ff74c\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #4ff74c;color:#4ff74c\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6617dde063a1b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymakersandsavers.com\/property-taxes\/#What_are_property_taxes\" title=\"What are property taxes?\">What are property taxes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymakersandsavers.com\/property-taxes\/#How_property_tax_is_caculated\" title=\"How property tax is caculated!\">How property tax is caculated!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymakersandsavers.com\/property-taxes\/#How_to_pay_your_property_taxes\" title=\"How to pay your property taxes!\">How to pay your property taxes!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymakersandsavers.com\/property-taxes\/#Property_tax_deductions\" title=\"Property tax deductions!\">Property tax deductions!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymakersandsavers.com\/property-taxes\/#Tips_for_keeping_your_property_taxes_low\" title=\"Tips for keeping your property taxes low!\">Tips for keeping your property taxes low!<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"what-are-property-taxes\"><span class=\"ez-toc-section\" id=\"What_are_property_taxes\"><\/span>What are property taxes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>Property taxes are a form of <a href=\"https:\/\/moneymakersandsavers.com\/what-are-taxes\/\" data-type=\"post\" data-id=\"1912\">taxes<\/a> that people have to pay on any &#8220;property&#8221; that they buy. Property taxes are <a href=\"https:\/\/moneymakersandsavers.com\/what-are-taxes\/\" data-type=\"post\" data-id=\"1912\">taxes<\/a> that property owners have to pay every year typically on things like housing and vehicles of just about every sort. Property taxes are paid on houses, office buildings, cars, motorcycles, boats, and more. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Property taxes are used to fund government functions. These government functions can include local and community services, schools, infrastructure, and other projects. The price of these taxes can vary from location to location. These taxes are generally levied by state and local municipalities and used to fund school districts, community amenities, and other local expenses and projects.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-property-tax-is-caculated\"><span class=\"ez-toc-section\" id=\"How_property_tax_is_caculated\"><\/span>How property tax is caculated!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>If you ever wanted to estimate the value of the taxes you&#8217;ll pay on your property, one formula you can use is:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Property Tax = Assessed Value x Tax Rate<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Admittedly, this equation doesn&#8217;t take into account very many factors that can affect your property taxes so the answer you come up with will only be an estimate and may not mirror how much you actually end up paying. State and local laws determine how property taxes are calculated, and property taxes are evaluated using the property\u2019s value and the city\u2019s tax rate. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>A property\u2019s value takes many factors into consideration, including the physical home, the land, and other personal property like cars. This value is determined by an assessor who works with a local taxing authority and keeps track of the local property values. Because a home\u2019s property value is closely monitored, changes in a property can cause a&nbsp;property tax increase&nbsp;or decrease.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2021\/11\/property-tax-image-1.png\" alt=\"property taxes\" class=\"wp-image-3668\" srcset=\"https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2021\/11\/property-tax-image-1.png 800w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2021\/11\/property-tax-image-1-300x169.png 300w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2021\/11\/property-tax-image-1-768x432.png 768w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2021\/11\/property-tax-image-1-150x84.png 150w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-pay-your-property-taxes\"><span class=\"ez-toc-section\" id=\"How_to_pay_your_property_taxes\"><\/span>How to pay your property taxes!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>When it comes to people&#8217;s homes, most property tax payments are part of the homeowner\u2019s monthly mortgage payment. This is because mortgage servicers often collect the tax payment in monthly installments as part of your mortgage payment and it&#8217;s put in an&nbsp;escrow account. This account is then tapped to make the payment when it\u2019s due. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>If you don\u2019t pay your property tax as part of a monthly mortgage payment, you\u2019ll pay the tax office directly, and you should receive a bill in the mail that includes payment directions. Homeowners can choose to make annual or semi-annual payments directly to their tax authority when they\u2019re due. Mortgage lenders may put their own restrictions on this option so that they can be reasonably sure your home won\u2019t be taken in a tax foreclosure.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Assessors evaluate the value of personal property every year to determine how much a piece of property is worth and therefore how much tax is owed on it.&nbsp;When assessors prepare the tax assessments&nbsp;that are sent to all property owners, they take into account the value of the actual home, its land, and other personal property such as cars or boats. The tax assessor may also work with the local taxing authority, who are in charge of setting the tax rate for their municipalities, to keep track of local property values.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"property-tax-deductions\"><span class=\"ez-toc-section\" id=\"Property_tax_deductions\"><\/span>Property tax deductions!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>In order to claim a deduction on property taxes paid, one needs to file itemized tax returns as opposed to the standard tax return. State and local property taxes are generally eligible to be deducted from the property owner&#8217;s&nbsp;federal income taxes. The&nbsp;Tax Cuts and Jobs Act&nbsp;(TCJA) capped the property tax deduction, along with other state and local taxes, starting with 2018 taxes. The law capped the deduction for state and local taxes, including property taxes, at $10,000 ($5,000 if married filing separately) where previously, there was no limit on the deduction.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>In addition, under the new law homeowners who deduct&nbsp;mortgage interest&nbsp;are limited to the amount they pay on $750,000 worth of debt, down from $1 million. Interest on homes bought on or before Dec. 15, 2017, is guaranteed as a special exception at the previous rate.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>The real estate taxes that can be deducted include taxes paid at closing when buying or selling a home and taxes paid to a county or town\u2019s tax assessor on the assessed value of the personal property. Taxes paid on rental or commercial property and on property not owned by the taxpayer can&#8217;t be deducted.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Property use for spiritual or religious purposes can be tax-exempt. Another way to get a deduction on your total taxes is if you&#8217;re self-employed and use your <a href=\"https:\/\/moneymakersandsavers.com\/tax-deductions-self-employed\/\" data-type=\"post\" data-id=\"2002\">home as an office<\/a>. This allows you to deduct part of the value of your home from your taxes.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"tips-for-keeping-your-property-taxes-low\"><span class=\"ez-toc-section\" id=\"Tips_for_keeping_your_property_taxes_low\"><\/span>Tips for keeping your property taxes low!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>When it comes to property taxes there are a few things you can do or not do that would affect your tax bill and help keep it low. Here are a few things to keep in mind:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul><li>Any changes to your home, like building a deck, a pool, remodeling, and etc. will likely increase the value of your home. This will have the added affect of increasing your property taxes.<\/li><li>While assessors do work within a specific set of guidlines they are still somewhat subjective. Your house is being compared to that of your neighbors in order to determine it&#8217;s value. If you do want to make any improvements to your house, it might be a good idea to wait until after your house is assessed to do so.<\/li><li>Some states and municipalities lower the tax burden for these groups of people: seniors, veterans, people with disabilities, agricultural properties, and homestead exemptions. <\/li><li>You can also appeal your tax bill. Filing a tax appeal may cost you a small filing fee, which is paid to have someone review your appeal, and if the appeal is successful it will only lower the assessment on your home not your&nbsp;effective tax rate. You will still be taxed at the same rate, but it will result in a reduction in your tax bill.<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>If you want to have a much better idea of how much taxe you owe on your property. Here&#8217;s a calculator from <a href=\"http:\/\/smartasset.com\" target=\"_blank\" rel=\"noreferrer noopener\">SmartAsset<\/a><\/p><cite><a href=\"https:\/\/smartasset.com\/taxes\/property-taxes\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/smartasset.com\/taxes\/property-taxes<\/a><\/cite><\/blockquote>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Disclaimer: I am not any sort of investment or financial professional giving any sort of legal advice. I\u2019m just some guy trying to teach other people about how they might navigate the financial world.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are property taxes? Property taxes are a form of taxes that people have to pay on any &#8220;property&#8221; that they buy. Property taxes are taxes that property owners have to pay every year typically on things like housing and vehicles of just about every sort. Property taxes are paid on houses, office buildings, cars,&#8230;<\/p>\n","protected":false},"author":159998696,"featured_media":3667,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1492,1499],"tags":[1589,1427],"_links":{"self":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts\/3099"}],"collection":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/users\/159998696"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/comments?post=3099"}],"version-history":[{"count":0,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts\/3099\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/media\/3667"}],"wp:attachment":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/media?parent=3099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/categories?post=3099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/tags?post=3099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}