CHANTILLY, VA, Mar 28, 2024—Owning a home comes with many responsibilities, including paying your annual property taxes. These numbers vary from state to state and region to region, and many homeowners may be curious as to how these numbers are determined.
"Unlike the income tax and the sales tax you pay, the property tax is not based on how much money you earn or how much you spend," explains Scott MacDonald, President of RE/MAX Gateway. Instead, this number is based solely on how much the property you own is worth.
The real property tax is an ad valorem tax, meaning a tax based on the value of property.
"Ideally, the owners of property of equal value pay the same amount of property taxes, and the owners of more valuable property pay more in taxes than the owners of less valuable property," says MacDonald.
So how is this tax calculated? MacDonald offers an explanation: The tax is calculated using a variety of formulas and is based on a property’s assessed value – its full market value or a percentage thereof – and the tax rate of the taxing jurisdiction, minus any property tax exemptions, such as those offered for the elderly or veterans.
If you have any specific questions on your region's property taxes, call your county tax office to speak with a representative.
For information on real estate, please contact RE/MAX Gateway at scottmacdonald@remax.net, 703-652-5777, or RE/MAX Gateway.
RE/MAX Gateway is an award-winning real estate company serving Northern Virginia and the DC Metro area with four office locations. Agents are licensed in Virginia, Washington, D.C., and Maryland.