What Are Property Taxes?
Property Taxes: Annual taxes charged by local governments based on a home's assessed value.
Property taxes are charged by your county, city, school district and other local authorities, based on the assessed value of your home and the local tax rate.
How they affect your mortgage
Lenders include property taxes in your monthly payment (PITI). Most loans collect them monthly into an escrow account, and the servicer pays the bill when it's due.
Estimating them
- Look up the current tax bill on the county assessor's or treasurer's website.
- Be careful: the seller's bill may include exemptions you won't get, or an old assessment. In many areas, the home is reassessed after a sale.
- Unbeatable estimates taxes for each home and lets you enter the actual amount.
At closing
Taxes are prorated between buyer and seller based on the closing date, so each pays for the time they owned the home.
Good to know
File for any homestead exemption after closing to lower taxes on your primary residence.