Property Tax Basics

Property tax is usually based on local rules, assessed value, tax rates, and exemptions. It can be a major part of housing cost and should be considered alongside income tax.

Assessed value vs market value

The assessed value used for taxes may differ from market value. Local assessment rules, caps, and appeal procedures vary widely.

Rates and exemptions

Some areas use millage rates or percentages. Homestead exemptions, senior exemptions, veteran exemptions, and local relief programs may reduce the bill for eligible owners.

Budgeting monthly

Even when property tax is billed annually or semiannually, converting it to a monthly cost can improve budgeting and housing comparisons.