Your real estate taxes are the surest proof that you own your home. Documents for these taxes are may be required for your school or public safety department. But when we buy a new house, it becomes very difficult for us to find real estate taxes paid. In this article, we will discuss this problem in detail and tell you How to find real estate taxes paid?
In the previous article of our blog Kabbage Loan Guide, we told you How to pay Kentucky state taxes online? Similarly, in this article of ours, we are going to tell you How to find real estate taxes paid? So friends, let’s start the article.
How to find real estate taxes paid?
Before starting the article, let us tell you that real estate taxes are a complicated subject. There are many questions in the entire United States of America regarding real estate taxes, for which people do not get answers. In this article, we have answered all kinds of questions related to real estate taxes. Some of which we have given below.
- What are real estate taxes?
- How to find real estate taxes paid?
- Where is my real estate tax on my 1098?
- How do I find out how much real estate tax I owe?
- How can I reduce my real estate taxes?
- What happens if I don’t pay my real estate taxes?
- How does home value affect real estate taxes?
- How can I compare real estate taxes across different areas?
What are real estate taxes?
Real state taxes are those taxes that have to be paid to the local government to buy any property or some part of the profit on selling it. Just like the house tax of our house, in the same way, the real estate tax is applicable on any such property which is being taken for doing real estate business.
It is slightly different from house tax. If we talk about house tax, then in house tax, you have to pay house tax every year for the house you live in and the house you own. But the one who is going to sell the property in real estate. At the time when he will buy that property and sell it to someone else, he will give some part of the profit in the meantime to the government. Which we will call real estate tax.
How to find real estate taxes paid?
There are several ways to find out how much real estate tax you owe. The most common method is to check your annual property tax bill, which is sent to homeowners each year by their local government.
As of June 2023, paying real estate taxes is an essential responsibility for property owners, and it’s also an aspect that can affect your tax deductions. If you’re wondering how to find out how much real estate tax you paid, there are several methods you can explore. Let’s delve into the various ways to obtain this information:
1. Check Form 1098 from Your Mortgage Company: If you have a mortgage on the property, your mortgage company may provide you with Form 1098 at the end of the year. Look for box 10 (Other) on the form, which might include the amount of property tax paid on your behalf by the mortgage company. This information is crucial for claiming the property tax deduction accurately.
2. Review Bank or Credit Card Records: If you pay your property tax directly, without involving a mortgage company, you can search your bank or credit card records for transactions related to the property tax payments. Look for payments made to your city or county tax assessor’s office, indicating the amount paid and the date of payment.
3. Visit the City or County Tax Assessor’s Website: Most cities and counties have online portals where you can access property tax records. Look for a link to “Property Search” or “Property Tax Records” on the tax assessor’s website. Enter your property address or parcel number to find details about your property taxes, including the amount paid and the payment dates.
4. Keep Track of Payment Dates: It’s crucial to maintain a record of the dates when you made property tax payments. This information will be useful when claiming the deduction in the appropriate tax year. Remember that the property tax deduction should be claimed in the year you made the payment. For example, if you paid your 2023 property tax on December 14, 2022, you should claim it on your 2022 tax return.
5. Consult Your Lender: If you’re uncertain about the timing of property tax payments made by your mortgage lender on your behalf, don’t hesitate to reach out to them for clarification. Lenders may make annual or quarterly payments to cover your property taxes, depending on the practices of the taxing authority in your location. Contact your lender to understand when these payments are typically made.
6. Utilize Property Tax Identification Number (PTIN): Many local authorities allow property owners to access property tax information online using a Property Tax Identification Number (PTIN). This number is unique to your property and can help you retrieve relevant tax details.
Where is my real estate tax on my 1098?
If you have a mortgage on your property, your real estate tax information may be listed on your 1098 form. Form is sent to homeowners each year by their mortgage lender and includes information on mortgage interest paid and real estate taxes paid. And as long as this mortgage loan runs, you will keep getting 1098 every year.
The real estate tax information is typically listed in box 5 of the 1098 form.
How do I find out how much real estate tax I owe?
You can check your annual property tax bill or contact your local tax assessor’s office to find out how much real estate tax you owe. You can also use online resources such as Zillow or Redfin to obtain estimated property tax information based on the assessed value of your property.
How can I reduce my real estate taxes?
There are several ways to reduce your real estate taxes. One method is to challenge the assessed value of your property if you believe it is too high. Apart from this, there are many other ways by which you can reduce your real estate tax,
we have given some of these points below.
- Look for exemptions: Many states and municipalities offer property tax exemptions for certain categories of homeowners. Like, as seniors, veterans, and low-income homeowners.
- Improve your property’s energy efficiency: Some states offer property tax incentives for homeowners who make energy-efficient improvements to their homes, such as installing solar panels or upgrading insulation.
- Consider a tax abatement program: Some municipalities offer tax abatement programs that can reduce property taxes for a set period of time. These programs are typically designed to encourage development or redevelopment in certain areas.
- Hire a tax consultant: If you’re having difficulty navigating the tax system, you may want to consider hiring a tax consultant. A consultant can help you identify opportunities for tax savings and guide you through the appeals process. However, it’s important to choose a reputable consultant who has experience working with real estate taxes.
What happens if I don’t pay my real estate taxes?
If you don’t pay your real estate taxes, your local government may place a tax lien on your property, which can lead to a foreclosure if the taxes remain unpaid. It’s important to prioritize paying your real estate taxes to avoid this outcome.
How does home value affect real estate taxes?
The value of your home directly affects the amount of real estate taxes you owe. In general, the higher the assessed value of your property, the more you will owe in taxes. Because, the more the value of your house, the more percentage you will have to pay as a real estate tax. This Is Why the Value of a Home Affects Real Estate Taxes
How can I compare real estate taxes across different areas?
To compare real estate taxes across different areas, you can use online resources such as Zillow or Redfin, which provide estimated property tax information based on the assessed value of your property.
You also can contact the tax assessor’s office in each area you are considering to obtain information on the real estate tax rates and assessment methods used in that location. This may be help you make an informed decision when choosing a new home.
finding out how much real estate tax you owe can be confusing, but there are several ways to obtain this information. Additionally, understanding how real estate taxes are calculated and taking steps to reduce them can help you save money and ensure that you are contributing to your local community in a meaningful way.
Yes, in most cases, you can access public records for real estate taxes paid. If your state's online tax depositing website is working. So you can extract public records from that too. Which will also include your record.
Real estate taxes paid can have a significant impact on your budget and financial planning, as they can represent a significant expense that should be accounted for in your overall financial strategy.
The frequency of real estate tax payments varies by location. The location on which your property is. It depends on how property tax is collected at that location. Because in some states tax is deposited annually and in some states, tax is deposited twice in 1 year.
Even in the United States of America, there are some states in which tax is collected 4 times in a year. So you can get information about your state from the local tax office there.
Real estate taxes are typically applied to any property that you own, including your primary residence, vacation homes, rental properties, or land.
To appeal your property assessment for real estate taxes, you will typically need to file a written request with your local tax assessor's office and provide evidence to support your case.
You can estimate your real estate taxes before buying a home by researching the local tax rates and property assessments or by consulting with a real estate agent or attorney.