You’re considering buying a home in beautiful Albemarle County. You create a budget and begin searching for homes that fit your price range and criteria.
Did you remember to factor in how taxes will impact the cost of your home?
It’s important to understand the real estate tax rate in Albemarle County and how that will impact you as a homeowner. We’re here to help you determine your real estate tax liability.
What Is A Real Estate Tax?
Real estate taxes, also known as property taxes, are taxes levied on your property by local government to provide community services. The taxes are based on location and might pay for road maintenance, police and fire services, parks, garbage collection, and more.
A $200,000 home in the city will likely cost more overall than a $200,000 rural property because of the real estate taxes on the property needed to cover city services.
Real estate taxes are assessed on all property owned unless a legal exemption exists. Most real estate taxes are paid in two equal installments over the course of the year.
Your property value and the real estate tax rate in your municipality determine your real estate tax. Because the tax varies from one property to another, it’s important to understand how to estimate the real estate taxes on your home.
How To Determine The Tax You Owe
When calculating your real estate tax, the first thing to do is determine the value of your home. Your local government will appraise your home to figure out it’s value.
Local real estate agents such as the Denise Ramey Team know who to contact in Albemarle County to get your home assessed. Rely on real estate professionals to help you quickly get the job done.
The assessed value of your home is based on factors like square footage, acreage, number of bathrooms, and similar properties in your area. It is usually similar to, but not the same as, the fair market value of your home. Fair market value is what a knowledgeable buyer would pay for a house.
Next, find the mill levy, or tax rate, for your municipality. This can be found on the local tax assessor’s website and is typically posted as a percentage. The 2021 tax rate in Albemarle County is .854 cents per $100 (or .00854% per dollar).
Once you have your assessed value and your tax rate, the estimate is easy. Multiply your home’s assessed value by the mill levy, for example: $300,000 x .00854 = $2,562. Your estimated real estate taxes are $2,562.
Also note that the real estate tax can change over time based on the needs of your municipality.
Preparing for Real Estate Tax Season
As real estate tax season approaches, make sure you are prepared. Choose an assessor, and rely on your local real estate agents.
Remember that when you are buying your home, local real estate agents can help you through the process!
