How much you can expect to spend when you purchase a new home can be difficult to figure out. Basing what your taxes will be on the taxes the current owner is paying is a common mistake that is made by many. For a variety of reasons a professional Realtor can explain, the taxes the current owner is paying and the taxes a new owner will pay can be vastly different. We would be happy to give you a more thorough explaination - just give us a call or send us an email. In the meantime, I hope these steps will help you estimate what the property taxes on a newly purchased home may be.
The steps are:
1. Ignore the current property taxes (more on that after the steps)
2. Figure out how much you are planning to spend on the property.
3. Take that amount and multiply by .015. (ex. 100,000 x .015)
4. Take that amount and multiply by .02 (ex. 100,000 by .02)
5. You now have the range for where your taxes will be.
6. You can add the two numbers and divide by two to get a more accurate estimate.
7. Remember that this is not the exact amount you'll be paying - it is only an approximate number.
The reason you want to ignore the current amount is because the Save Our Homes tax law caps how much property taxes can be raised. Property tax increases are, by current law, capped at 3% per year. Consequently, if one person bought their home 20 years ago and another person bought the identical home last year, the amount the two people are paying can be very different.
Here is an explanation from the County Tax Appraiser regarding why it is difficult to give exact tax estimates: