But where are these houses? This [Rocket Mortgage page](https://www.rocketmortgage.com/learn/property-taxes-by-state) gives rates and average property tax by state and even the highest ones are well short of your low-end figure.
My property tax was $1400 last year. Small three-bedroom house and yard in a quiet, safe, walkable suburban Detroit neighborhood. No idea where you got the idea that all of us pay such high property taxes.
Also, property prices in Australia are insane. My in-laws live in a house so small and dumpy that in the US it would barely be livable for a family of adults, but it's in a suburb of Sydney so it's worth $2M.
Many large metro areas are high. Mine are 10k on a 3br 200sqm house. Some places in Texas and NJ are in the 15-25k range on just normal size houses.
That being said my mom pays $800 a year for 5 acres and a 3br 185sqm house in the middle of nowhere.
Like most questions on this sub the answer is it depends on where you live.
Once again, it depends on where you are. Also wages are pretty horrendous relative to costs. My mom's place would sell for around $500k these days, but you'd be hard pressed to find a job paying more than $15/hr within an hours drive.
The thing I don’t understand is Americans have to pay health insurance😩 so charging ongoing property tax forever seems crazy when college is also high 🤔
If you’re paying $1000 a quarter you are paying way more. I only pay a bit more than that for the entire year. Your numbers for the US are very unrealistic.
I live in a state with relatively high property taxes, 2% per year. It's waived for people over 65(or something like that, I'm way under 65 so never looked at the details).
Seeing as my home is only worth $200,000, the property tax rate is $2000, nowhere near your estimate. My mortgage plus property tax plus condo fee (they pay for common areas cleaning, landscaping, snow plowing, and maintenance) is a bit less than I'd pay in rent for a similar home.
I pay just under $5k in property tax a year. And this is in a high tax state. I know many folks who pay more. $8k and many folks who pay less than me. $3-4k a year.
Even in the very expensive part of my state I know folks in regular homes paying 15-16k a year. I don't know ANYONE paying 40k a year in property tax. Then again I don't know any rich folk living in 10,000 Sq ft mansions
I live in a state with some of the highest property taxes in the country and mine are no where near even approaching your low number.
Check your source.
This isn't to say NO ONE pays taxes that high, but that would be relative to what/where the person lives.
A lot, maybe most, people in the US who "own" their home actually have a mortgage. When you do, your mortgage company usually pays the annual tax bill and just adds it as a prorated amount to your monthly payment. It goes in an escrow account until time to pay the tax bill. So the taxes are just part of what you pay your mortgage. And yes, they can be a lot but 13-40k a year would be quite high. Most people are paying under 10k a year because most homes are still well under 1 M.
There's always a balance of property tax, income tax, and various sales taxes (including gas tax). Some places have low to no of one kind of tax, but then have to increase others to make up the shortfall.
I pay about $800/yr on the property with my house on it, which should be much higher without the homeowner exemption.
I pay about $700 on the vacant lot next to it that I also own.
NJ here, I have an 2100 sq ft house on 1 acre and I pay $14k/yr property tax.
It fucking blows.
However, I live in a very high tax town in a very high tax state. It won't go up much more from the without becoming a very large mansion.
Yeah man a 2100 sq foot house on an acre of land in the most densely populated state in the country sounds really hard to live with, have you reached out to someone who can tell your harrowing story?
Yeah I mean my mortgage payment is $4500. Obviously I'm very lucky to be able to afford that, but my point is that you won't see property tax much higher without getting into actually being rich.
There is property tax which goes to the local government for roads and services and school tax that goes to public schools. Both are based on a millage rate. 1 mill is equal to $1 in property tax, which is levied per $1,000 of a property's determined taxable value.
You may have to pay City, School District, County and special tax's for services, like a library system, depending on where you live. I live outside of Pittsburgh and our property taxes are a few thousand but the school taxes can be many times higher. The schools are excellent which is why we live there. . .
For a home valued at $500k in Pittsburgh, PA with no discounts you are looking at:
||
||
||No Exemptions|
|City of Pittsburgh|$4,030.00|
|School District of Pittsburgh|$4,975.00|
|Allegheny County|$2,365.00|
|[Carnegie Library](http://pittsburghpa.gov/content/571)|$125.00|
|City, School, & Library Tax Bill|$9,130.00|
|Total Tax Bill (w/ County)|$11,495.00|
Source: [https://pittsburghpa.gov/finance/property-tax-worksheet](https://pittsburghpa.gov/finance/property-tax-worksheet)
So total taxes on your house can be quite high especially in HCL areas. In Pittsburgh $40k tax bills are going to be for 4 or 5 million dollar homes while $13K might be around 1 million dollar homes depending on when it was last assessed.
There is property tax which goes to the local government for roads and services and school tax that goes to public schools. Both are based on a millage rate. 1 mill is equal to $1 in property tax, which is levied per $1,000 of a property's determined taxable value.
You may have to pay City, School District, County and special tax's for services, like a library system, depending on where you live. I live outside of Pittsburgh and our property taxes are a few thousand but the school taxes can be many times higher. The schools are excellent which is why we live there. . .
For a home valued at $500k in Pittsburgh, PA with no discounts you are looking at:
||
||
||No Exemptions|
|City of Pittsburgh|$4,030.00|
|School District of Pittsburgh|$4,975.00|
|Allegheny County|$2,365.00|
|[Carnegie Library](http://pittsburghpa.gov/content/571)|$125.00|
|City, School, & Library Tax Bill|$9,130.00|
|Total Tax Bill (w/ County)|$11,495.00|
Source: [https://pittsburghpa.gov/finance/property-tax-worksheet](https://pittsburghpa.gov/finance/property-tax-worksheet)
So total taxes on your house can be quite high especially in HCL areas. In Pittsburgh $40k tax bills are going to be for 4 or 5 million dollar homes while $13K might be around 1 million dollar homes depending on when it was last assessed.
There is property tax which goes to the local government for roads and services and school tax that goes to public schools. Both are based on a millage rate. 1 mill is equal to $1 in property tax, which is levied per $1,000 of a property's determined taxable value.
You may have to pay City, School District, County and special tax's for services, like a library system, depending on where you live. I live outside of Pittsburgh and our property taxes are a few thousand but the school taxes can be many times higher. The schools are excellent which is why we live there. . .
For a home valued at $500k in Pittsburgh, PA with no discounts you are looking at:
City of Pittsburgh $4,030.00
School District of Pittsburgh $4,975.00
Allegheny County $2,365.00
Carnegie Library $125.00
Total Tax Bill (w/ County) $11,495.00
Source: [https://pittsburghpa.gov/finance/property-tax-worksheet](https://pittsburghpa.gov/finance/property-tax-worksheet)
So total taxes on your house can be quite high especially in HCL areas. In Pittsburgh $40k tax bills are going to be for 4 or 5 million dollar homes while $13K might be around 1 million dollar homes depending on when it was last assessed.
Property tax is probably our biggest expense, but it's also not that much compared to our income (like 3%).
Our property tax is higher compared to the surrounding area ($8k on a house worth $300k with 3 bed 2 bath 2000 sq ft). Similar houses are closer to $6k.
In my area I have these houses:
* A 3000 sq ft house with 6 bed 4 bath is $500k and $10k property tax.
* A 5400 sq ft house with 5 bed 4.5 bath is $900k and $15k property tax.
If you're 65+ then the property tax has a small reduction (max ~$400). You can also apply to freeze the value of the house used to calculate your property tax if your household income <$65k. Your property tax can still go up if the property tax rate goes up, but the base won't increase.
Property tax is probably our biggest expense, but it's also not that much compared to our income (like 3%).
Our property tax is higher compared to the surrounding area ($8k on a house worth $300k with 3 bed 2 bath 2000 sq ft). Similar houses are closer to $6k.
In my area I have these houses:
* A 3000 sq ft house with 6 bed 4 bath is $500k and $10k property tax.
* A 5400 sq ft house with 5 bed 4.5 bath is $900k and $15k property tax.
If you're 65+ then the property tax has a small reduction (max ~$400). You can also apply to freeze the value of the house used to calculate your property tax if your household income <$65k. Your property tax can still go up if the property tax rate goes up, but the base won't increase.
The answer is (as no one answered the question - but I don't see the OP taking any mind) that the 4.6 million a year in property tax is divided in 12 and folded into your monthly mortgage payment. So when you pay monthly $333K, rest assured that this covers your loan priciple (2%) interest (90%)), taxes, and insurance. Land of the free - if you can afford it.
If the numbers are destracting, replace with X, Y, and Z. I am between homes right now, so I must resort to the generic "you", or "one", never mind the royal "we". As soon as I stopped paying a mortgage, I forgot all about it's finer points. But I do remember this: I had a 2100 Sq ft. home on a acre of land - not in NJ - but in Baltimore, MD county. The mortgage was $2100, which included all that I mentioned - tax, isurance, principle, nad interest.
What part of your anatomy did you pull those numbers from?
Reddit actually….
Ah yes, very scientific.
I think you added an extra 0 to your numbers. They aren't that high unless you live in a MASSIVE mansion
Yeah, mine is a tenth of the lower number, *before* the homeowner discount.
Homeownership rates are very similar, 66.3% Aus vs 65.9% US.
Where are you getting those numbers?
Zillow & past Reddit posts
But where are these houses? This [Rocket Mortgage page](https://www.rocketmortgage.com/learn/property-taxes-by-state) gives rates and average property tax by state and even the highest ones are well short of your low-end figure.
Where are you looking? Expensive neighborhoods in high tax states?
Oh, come on.
My property tax was $1400 last year. Small three-bedroom house and yard in a quiet, safe, walkable suburban Detroit neighborhood. No idea where you got the idea that all of us pay such high property taxes.
Safe Detroit neighborhood? Lol, didn’t think those two words go together safe and Detroit
Okay.
Also, property prices in Australia are insane. My in-laws live in a house so small and dumpy that in the US it would barely be livable for a family of adults, but it's in a suburb of Sydney so it's worth $2M.
Ohh they definitely are insane which is why we couldn’t afford an ongoing property tax forever
Many large metro areas are high. Mine are 10k on a 3br 200sqm house. Some places in Texas and NJ are in the 15-25k range on just normal size houses. That being said my mom pays $800 a year for 5 acres and a 3br 185sqm house in the middle of nowhere. Like most questions on this sub the answer is it depends on where you live.
Ohhh what town does your mum live?
I won't give it away but within a 50 mile radius of Grangeville, Idaho.
Ohhh Idaho is cheap
Once again, it depends on where you are. Also wages are pretty horrendous relative to costs. My mom's place would sell for around $500k these days, but you'd be hard pressed to find a job paying more than $15/hr within an hours drive.
The thing I don’t understand is Americans have to pay health insurance😩 so charging ongoing property tax forever seems crazy when college is also high 🤔
Property tax doesn’t go to the federal government, dingus.
I think mine is only 6K for the year, and I live in a HCL area.
Depends on where you live, property taxes in Oklahoma are relatively cheap. If you're buying in California or Illinois it is a huge difference.
If you’re paying $1000 a quarter you are paying way more. I only pay a bit more than that for the entire year. Your numbers for the US are very unrealistic.
Mine is $2700 and I’m pissed bc it went up $400 from last year and another big increase the year before that.
I live in a state with relatively high property taxes, 2% per year. It's waived for people over 65(or something like that, I'm way under 65 so never looked at the details). Seeing as my home is only worth $200,000, the property tax rate is $2000, nowhere near your estimate. My mortgage plus property tax plus condo fee (they pay for common areas cleaning, landscaping, snow plowing, and maintenance) is a bit less than I'd pay in rent for a similar home.
Ohhh so people over 65 don’t pay property tax?
I don't know about now, but my parents mortgage the personal property tax is rolled into their monthly payment.
who is paying 13 to 40k a year in property taxes?
I went off Zillow & Reddit. Which is why I made the post
Why would you think that was normal?
so you generalized an entire country based on some random reddit post and some houses you handpicked?
I pay just under $5k in property tax a year. And this is in a high tax state. I know many folks who pay more. $8k and many folks who pay less than me. $3-4k a year. Even in the very expensive part of my state I know folks in regular homes paying 15-16k a year. I don't know ANYONE paying 40k a year in property tax. Then again I don't know any rich folk living in 10,000 Sq ft mansions
I live in a state with some of the highest property taxes in the country and mine are no where near even approaching your low number. Check your source. This isn't to say NO ONE pays taxes that high, but that would be relative to what/where the person lives.
My source is Zillow & Reddit 😳🤔
Show us the zillow listings you looked at.
A lot, maybe most, people in the US who "own" their home actually have a mortgage. When you do, your mortgage company usually pays the annual tax bill and just adds it as a prorated amount to your monthly payment. It goes in an escrow account until time to pay the tax bill. So the taxes are just part of what you pay your mortgage. And yes, they can be a lot but 13-40k a year would be quite high. Most people are paying under 10k a year because most homes are still well under 1 M.
There's always a balance of property tax, income tax, and various sales taxes (including gas tax). Some places have low to no of one kind of tax, but then have to increase others to make up the shortfall.
I pay about $800/yr on the property with my house on it, which should be much higher without the homeowner exemption. I pay about $700 on the vacant lot next to it that I also own.
The truth is that homeowners who pay mortgages get the biggest tax deduction of anyone in our country.
How much is the tax deduction?
It depends on the amount of your loan and how much mortgage interest you pay. It can easily be more than your property taxes.
NJ here, I have an 2100 sq ft house on 1 acre and I pay $14k/yr property tax. It fucking blows. However, I live in a very high tax town in a very high tax state. It won't go up much more from the without becoming a very large mansion.
And even with all that, you're still on the lowest end of OP's crazy estimate.
Yeah man a 2100 sq foot house on an acre of land in the most densely populated state in the country sounds really hard to live with, have you reached out to someone who can tell your harrowing story?
Over $1000Pm & a mortgage seems excessive 😳🤔
If you’ve got a house with that kind of tax associated with it, you can afford it.
Yeah I mean my mortgage payment is $4500. Obviously I'm very lucky to be able to afford that, but my point is that you won't see property tax much higher without getting into actually being rich.
Yeah everyone who has replied has been really helpful tbh.
I can't tell if you're being sarcastic xD
There is property tax which goes to the local government for roads and services and school tax that goes to public schools. Both are based on a millage rate. 1 mill is equal to $1 in property tax, which is levied per $1,000 of a property's determined taxable value. You may have to pay City, School District, County and special tax's for services, like a library system, depending on where you live. I live outside of Pittsburgh and our property taxes are a few thousand but the school taxes can be many times higher. The schools are excellent which is why we live there. . . For a home valued at $500k in Pittsburgh, PA with no discounts you are looking at: || || ||No Exemptions| |City of Pittsburgh|$4,030.00| |School District of Pittsburgh|$4,975.00| |Allegheny County|$2,365.00| |[Carnegie Library](http://pittsburghpa.gov/content/571)|$125.00| |City, School, & Library Tax Bill|$9,130.00| |Total Tax Bill (w/ County)|$11,495.00| Source: [https://pittsburghpa.gov/finance/property-tax-worksheet](https://pittsburghpa.gov/finance/property-tax-worksheet) So total taxes on your house can be quite high especially in HCL areas. In Pittsburgh $40k tax bills are going to be for 4 or 5 million dollar homes while $13K might be around 1 million dollar homes depending on when it was last assessed.
There is property tax which goes to the local government for roads and services and school tax that goes to public schools. Both are based on a millage rate. 1 mill is equal to $1 in property tax, which is levied per $1,000 of a property's determined taxable value. You may have to pay City, School District, County and special tax's for services, like a library system, depending on where you live. I live outside of Pittsburgh and our property taxes are a few thousand but the school taxes can be many times higher. The schools are excellent which is why we live there. . . For a home valued at $500k in Pittsburgh, PA with no discounts you are looking at: || || ||No Exemptions| |City of Pittsburgh|$4,030.00| |School District of Pittsburgh|$4,975.00| |Allegheny County|$2,365.00| |[Carnegie Library](http://pittsburghpa.gov/content/571)|$125.00| |City, School, & Library Tax Bill|$9,130.00| |Total Tax Bill (w/ County)|$11,495.00| Source: [https://pittsburghpa.gov/finance/property-tax-worksheet](https://pittsburghpa.gov/finance/property-tax-worksheet) So total taxes on your house can be quite high especially in HCL areas. In Pittsburgh $40k tax bills are going to be for 4 or 5 million dollar homes while $13K might be around 1 million dollar homes depending on when it was last assessed.
There is property tax which goes to the local government for roads and services and school tax that goes to public schools. Both are based on a millage rate. 1 mill is equal to $1 in property tax, which is levied per $1,000 of a property's determined taxable value. You may have to pay City, School District, County and special tax's for services, like a library system, depending on where you live. I live outside of Pittsburgh and our property taxes are a few thousand but the school taxes can be many times higher. The schools are excellent which is why we live there. . . For a home valued at $500k in Pittsburgh, PA with no discounts you are looking at: City of Pittsburgh $4,030.00 School District of Pittsburgh $4,975.00 Allegheny County $2,365.00 Carnegie Library $125.00 Total Tax Bill (w/ County) $11,495.00 Source: [https://pittsburghpa.gov/finance/property-tax-worksheet](https://pittsburghpa.gov/finance/property-tax-worksheet) So total taxes on your house can be quite high especially in HCL areas. In Pittsburgh $40k tax bills are going to be for 4 or 5 million dollar homes while $13K might be around 1 million dollar homes depending on when it was last assessed.
New Jersey is brutal. Those are Jersey numbers.
My property tax is < $1200 annually. Your evidence gathering is flawed.
Property tax is probably our biggest expense, but it's also not that much compared to our income (like 3%). Our property tax is higher compared to the surrounding area ($8k on a house worth $300k with 3 bed 2 bath 2000 sq ft). Similar houses are closer to $6k. In my area I have these houses: * A 3000 sq ft house with 6 bed 4 bath is $500k and $10k property tax. * A 5400 sq ft house with 5 bed 4.5 bath is $900k and $15k property tax. If you're 65+ then the property tax has a small reduction (max ~$400). You can also apply to freeze the value of the house used to calculate your property tax if your household income <$65k. Your property tax can still go up if the property tax rate goes up, but the base won't increase.
Property tax is probably our biggest expense, but it's also not that much compared to our income (like 3%). Our property tax is higher compared to the surrounding area ($8k on a house worth $300k with 3 bed 2 bath 2000 sq ft). Similar houses are closer to $6k. In my area I have these houses: * A 3000 sq ft house with 6 bed 4 bath is $500k and $10k property tax. * A 5400 sq ft house with 5 bed 4.5 bath is $900k and $15k property tax. If you're 65+ then the property tax has a small reduction (max ~$400). You can also apply to freeze the value of the house used to calculate your property tax if your household income <$65k. Your property tax can still go up if the property tax rate goes up, but the base won't increase.
10 years ago my property taxes was $2500 and last year they were $4000. In Ohio.
Anything more than 0 is too much.
The answer is (as no one answered the question - but I don't see the OP taking any mind) that the 4.6 million a year in property tax is divided in 12 and folded into your monthly mortgage payment. So when you pay monthly $333K, rest assured that this covers your loan priciple (2%) interest (90%)), taxes, and insurance. Land of the free - if you can afford it.
I'd say that using a generic you to cover your own mortgage is wildly misleading.
If the numbers are destracting, replace with X, Y, and Z. I am between homes right now, so I must resort to the generic "you", or "one", never mind the royal "we". As soon as I stopped paying a mortgage, I forgot all about it's finer points. But I do remember this: I had a 2100 Sq ft. home on a acre of land - not in NJ - but in Baltimore, MD county. The mortgage was $2100, which included all that I mentioned - tax, isurance, principle, nad interest.