Luxe Buyer’s Guide: Understanding Property Taxes
When you become a homeowner, there’s more to manage than your mortgage. One of the most important (and ongoing) costs is property taxes — and at Luxe International Homes, we believe informed buyers make empowered decisions.
Here’s what you need to know before and after the sale:
💰 What Are Property Taxes?
Property taxes are government-imposed charges based on the value of your land and home. These funds support vital local services like:
Public schools
Police and fire departments
Road maintenance
Local infrastructure
Some states may also tax personal property (like cars or boats). The amount you owe is determined by where you live and what your property is worth.
🧐 Can I Know the Property Tax Before Buying?
Yes — and you should.
Most real estate listings include estimated annual property tax amounts. You can also:
Ask the seller for their latest tax bill
Find out when the property was last reassessed
Request the assessed value directly from the local tax assessor’s office
Keep in mind: assessed value is not the same as market value — and it may go up based on your purchase price.
📊 How Are Property Taxes Calculated?
Taxes are calculated using two components:
Assessed Value
This is a percentage of your home’s market value, adjusted based on condition, improvements, neighborhood comps, and more.Tax Rate (Mill Rate)
This is the amount you pay per $1,000 of assessed value.
Example:
If your home’s assessed value is $200,000, and your local mill rate is $0.005:
$200,000 x 0.005 = $1,000 in annual property taxes.
🏠 Are There Any Tax Exemptions?
Yes — and they could save you money.
You may qualify for exemptions if you are:
A senior citizen
A veteran
A surviving spouse
A person with disabilities
Most states also offer a homestead exemption for primary residences.
At Luxe, we’ll help you explore what’s available and connect you with trusted tax professionals.
💳 How Do I Pay Property Taxes?
The most common method: Escrow.
Your lender collects property tax funds as part of your monthly mortgage payment and pays the tax bill on your behalf when it’s due.
Alternatively, if you own your home outright or opt out of escrow, you can pay property taxes directly.
🧾 How Often Are Properties Reassessed?
Usually annually, or when:
Community upgrades (like a new school) occur
You make home improvements (like finishing a basement)
These updates can increase your home’s assessed value — and your tax bill.
📝 Can I Challenge My Property Tax Assessment?
Yes. If you believe your home was over-assessed, you can file an appeal.
Important:
There is a limited time window to challenge your tax assessment
Follow your local municipality’s instructions carefully
We recommend having comparable sales and documentation ready.
🔁 What Are Transfer Taxes?
Transfer taxes are a one-time fee paid when a property changes ownership. These vary by state and can be paid by the buyer, seller, or both — depending on local laws and your purchase agreement.
At Luxe, we ensure you understand these costs upfront and guide you through smart negotiations.
💛 Luxe Means Clarity + Legacy
At Luxe International Homes, we want you to walk into your new home with joy — not confusion. That’s why we educate every client on the real costs of ownership, including property taxes.
Your journey is about more than a home — it’s about financial peace, smart decisions, and building legacy with purpose.
📞 Ready to Own With Confidence?
Let’s create your personalized homebuyer roadmap — including a full tax review.
✅ Call Lauren Catchings: 229-304-5893
🌐 Visit: www.luxehp.com
📩 DM us to ask about our Luxe Buyer Budget Breakdown
