Understanding Property Tax Changes After Buying a Home

When you buy a home, your property taxes might not remain the same as the previous owner’s. Here’s what you need to know about how and when your property taxes may change:

Why Do Property Taxes Change?

Property taxes are calculated based on the assessed value of your home and your local tax rate. After a home is sold, many municipalities reassess the property’s value. If the purchase price is higher than the last assessed value, your taxes are likely to increase.

When Will the Change Happen?

• Immediately After Closing: Some counties reassess properties right after the sale. You might see the change reflected in your tax bill during the first full tax year after your purchase.

• Annual Reassessments: In areas with regular annual assessments, the increase may align with your area’s normal assessment schedule.

• Delayed Reassessments: In some states, tax adjustments may not occur until the next official county reassessment cycle, which could take several years.

What Can You Do?

• Budget for Increases: When planning your home purchase, account for potential tax hikes.

• Research Local Policies: Check with your county’s tax office to understand the timing and process for reassessments.

• Consider Exemptions: Some buyers qualify for tax breaks, like homestead exemptions, which can lower your property tax bill.

Understanding these potential changes helps you better prepare for the financial aspects of homeownership. Have questions about how taxes impact your mortgage? Feel free to reach out!