Tax Rates: How Much Will You Pay in Taxes for Your New Home?
Filed under: Home Tips
The mortgage on your new home isn’t the only expense that you’ll have after you move. You also need to consider expenses that will come up for taxes, maintenance, HOA fees, and more. Today, I want to look at a topic that my clients often ask about: taxes.
Figuring Out Tax Rates
Most people cringe when they think about paying high taxes. But, it is common for people to ask me what their anticipated tax burden is for a home that they are planning to buy. If you are wondering how the tax rate will affect your monthly payment, then you need to understand how the tax rates are calculated.
I ran some numbers based on the assumption of a $400,000 purchase price. In this hypothetical situation, I wanted to see the difference between a 1.1% tax rate and a 2% tax rate. Even though these rates seem close, it adds up to be about a $300 difference in your monthly payment. So, the tax burden can be pretty significant, especially for someone who is a first-time homebuyer or anyone who is pushing their budget to get into a house.
So, it is important that you pay attention to tax rates before choosing a home that you want to buy. One option is to find the county’s tax assessment of the home to see what the previous annual tax payment was on the property. When you find that number, divide it into the tax assessed value so that you can get a rough estimate about what your tax rate looks like.
If you have a question about property taxes, then you always have the option to talk to a real estate professional. I would love to answer your questions or help you find the right information that is needed to help you find the best home for your family.
Call, text or email any time if you need assistance with buying or selling a home in Temecula. I’m always here to help: (951) 473-0390 or [email protected]