How Much Will Your Real Estate Taxes Be?
A client recently asked how much their real estate taxes will be and how they are calculated. For those of you who wondering the same thing, here’s an explanation:
In Loudoun County, what each home’s actual tax amount is depends on two things…
- the assessed value of the property as of January 1 of the current year
- the current tax rate (currently $1.26 per $100 of assessed value)
The taxes you see listed on listings/properties for sale at this moment are typically for the current year. I say “typically” because sometimes, the tax amount listed is for the previous year.
The amount of taxes you owe changes yearly because updated assessed values come out the beginning of each year (in Loudoun County). And the tax rate can change as well. The county/local jurisdiction usually decides whether to change the tax rate after tax assessments come out. They look at their budget and see if they need to increase the tax rate in order to make up for a loss/lack of revenue thanks to overall lower assessed values (which typically happens in a down housing market where real estate values are/have declined).
In a nutshell, real estate taxes can and will change every year. What your total tax bill will be in the future is an unknown because of the process (as described above), but typically, the amount stays about the same or goes up rather than down.
Note: Every county/jurisdiction has a slightly different process – how Loudoun County does things is not the same as others.
If you have any questions, feel free to drop me a line or contact the local tax assessor’s office in your jurisdiction. Here are links to some of the assessor’s web sites throughout Northern Virginia…