Property Tax Information by State

You’ll surely find that the real estate taxes that you pay on a home can vary widely depending on what state, what city, and what county you are buying the home in.

Why the difference? Well, several factors are at work here, but the main thing is that the taxes will usually be higher in areas that are experiencing rapid population and housing growth. When rapid growth happens some local governments cannot provide the level of services expected of them without raising taxes. This usually happens because city governments didn’t anticipate the rapid growth and must then play catch-up.

Here are links to property tax information for each state we cover. In addition to links to each states local property appraiser’s websites, these sites do a good job of explaining the property tax situation specific to each state.

State Property Tax Websites
Arizona - http://www.azdor.gov/property/manuals.asp
California - http://www.boe.ca.gov/proptaxes/proptax.htm
Florida - http://dor.myflorida.com/dor/property/
Georgia - http://www.etax.dor.ga.gov/IndTax_PropTax.aspx
Nevada - http://tax.state.nv.us/property_tax.htm
New Mexico - http://www.tax.state.nm.us/ptd/ptd_hom1a.htm
North Carolina - http://www.dornc.com/taxes/property/index.html
South Carolina - http://www.sc.gov/Portal/Category/TAXESRESIDENTS
Tennessee – http://www.comptroller.state.tn.us/cpdivpa.htm
Texas - http://www.window.state.tx.us/taxinfo/proptax/

Property Appraisal
In most states the property appraiser’s office has the task of putting a value on your home. This will help determine the amount of tax you will be required to pay. The property appraiser is not, however, the person who determines what your taxes will be. The local government usually does that when they set the millage rate.

Some property appraisers are even taking into account the recent run-up of home prices in 2004 and 2005. Most realize it was a high percentage of investor demand that was driving the increase in values, as opposed to “real” demand, and to compensate they are now assessing some homes in the 70 to 85 percent range.

While the above information is good to know, in order to get the possible “worst-case scenario” idea of what your taxes will be, use the 100 percent value for your financial planning. Then when you get your tax bill, if it happens to be lower, you will hopefully be pleasantly surprised.

Millage Rate
An essential element to figuring out how much your taxes will be is the millage rate, commonly referred to as “mil rate.” The millage rate is expresses as “mils per thousand.” For example if the millage rate is “22.55”, then you will pay $22.55 per $1,000 of assessed value.

Each taxing district will set its own millage rate which can be determined by dividing the total proposed budget of the taxing district (city, county, school district, etc.) by the total taxable value of all real estate in the district after exemptions are deducted for.

You will likely be taxed by your city, county, school district, water management district if there is one, and others. It’s important to get a whole tax picture view before deciding on an area. The local property appraiser’s office will usually be your best resource for this.

It is also important to note that in some states real estate taxes are paid in arrears, and in many cases you will have an opportunity to get a small discount for paying them early.

Homestead Exemptions
Some states provide some much needed tax relief in the form of homestead and other exemptions. Here are some of the possible exemptions that can save you money:

• Homestead Exemption
• Additional Homestead Exemption for Persons 65 and Older
• Widow’s and Widower’s Exemption
• Disability Exemption
• Disability Exemption for Ex -Service Members
• Exemption for Blind Persons

The best resource for calculating what your taxes will be on a particular property is, again, the local Property Appraiser’s office. They are there to help you. Some even have calculators on their website that you can use to get an idea of what your taxes will be.