The Ultimate Guide to Property Taxes for First Time Homeowners

Dated: May 16 2022

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Paying property taxes can be a confusing process for first-time homeowners. There are a lot of things to consider, and it can be challenging to know where to start. Here’s all you need to know about property taxes when you own your first home. 

What Are Property Taxes?

Property taxes are one of the most significant expenses for any homeowner. You could lose your home if you don’t pay your property taxes. They help fund essential services like schools, roads, and public safety. Property taxes are also a major source of revenue for local governments. In most cases, property taxes are paid to the county in which the property is located. 

So How Much Do You Have to Pay?

The amount of tax that you will pay is based on the assessed value of your home. This value is determined by the county assessor's office and is generally equal to a percentage of your home's market value. The exact percentage varies from state to state, but it is typically between 0.75 percent and up to several percent.

How Can You Save Costs On Property Tax?

You know the saying; there are only two things of which we are certain in this life; death and taxes. While this is true, there are a few things that you can do to lower your property tax bill.

One way is to appeal your assessment. This can be done if you feel that the assessed value of your home is too high. For example, if you feel your home is worth $100,000, but it is assessed at $120,000, you may be able to have the assessment lowered. 

To appeal your assessment, you will need to contact your local assessor's office and file a formal appeal. In addition, you will likely need to provide evidence of your home's market value, such as a recent appraisal or comparative market analysis.

Another way to lower your property taxes is by taking advantage of any exemptions or abatements that you may qualify for. These are typically offered for things like energy-efficient improvements or properties located in certain areas. Many states also offer an exemption for veterans or seniors. There may also be other exemptions available depending on your state and county. You can usually find information about exemptions and abatements on your county's website.

Lastly, you can save money on property taxes by paying them early. Many jurisdictions offer a discount for homeowners who pay their taxes early.

Ready to Buy Your First Home?

If you're a first-time homeowner, property taxes can seem like a daunting expense. But by educating yourself on how they work and taking advantage of any available breaks, you can ensure that they don't strain your finances. If you plan to buy a house in Texas, our team is one of the best real estate agents in Texas, and we can get you started on the right track. Give us a call at (469) 693-8757

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Heather Gill

Hi, I am Heather Gill! I am your local REALTOR with EXP Realty. Voted Best Real Estate Agent in Carrollton, Texas by the Carrollton Leader.Read my recent interview for Voyage Magazine, Dallas.&nb....

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