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LearnFAQHome Buying

How do property taxes work and will mine go up after I buy?

Answer

Property tax is an annual local tax based on your home's assessed value times a local rate, and it funds schools, roads, and services. After you buy, many jurisdictions reassess the home – often near your purchase price – which can raise your tax bill above what the prior owner paid, sometimes significantly. Rates and reassessment rules vary widely by state and county; some cap annual increases, others reassess on sale. Because most lenders escrow taxes, a jump can quietly raise your monthly mortgage payment at the next escrow analysis. Before buying, ask the county what the home will likely be assessed at post-sale, not just last year's bill. If you think the assessment is too high, you can usually appeal it with comparable sales.

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