How much are property taxes on a 624,000 home?
After the mortgage the next biggest cost is usually property taxes
. Property taxes vary based on the municipality. The big thing to remember is that they often increase significantly after buying a house. This is because the taxable value is usually reset to reflect the new purchase price. To estimate your new taxes, find your local property tax rate and multiply by your home value.
Pay attention to how taxable values are recorded. Many times the taxable value will be reset to 50% of the actual purchase price. For example, let's say that you buy a house for 624k. The taxable value might be recorded as 312,000. Then find your local property tax rate. This is often recorded as mills. 1 mill is equal to 1/1000 of a dollar. In this scenario we use a tax rate of 40 mills.
||40 Mills (4% of taxable value)
While assessed values don't always reflect the new purchase price, be prepared to pay more property taxes than the previous owner.