What is personal property tax and how do I calculate it?
What is property tax?
According to Investopedia, “property tax is a tax paid on property owned by an individual or other legal entity, such as a corporation. Most commonly, property tax is a real estate ad-valorem tax, which can be considered a regressive tax. It is calculated by a local government where the property is located and paid by the owner of the property. The tax is usually based on the value of the owned property, including land. However, many jurisdictions also tax tangible personal property, such as cars and boats.”
After a loan closes, many questions arise for homeowners, including those related to property taxes. An important thing to remember after you close your loan is that you may be eligible for a personal property tax exemption or discount so you should contact your county and file for an exemption or discount as soon as possible. This can lower your tax payment and help alleviate confusion in the long run.
If you have an impounded account, Guild Mortgage will pay the secured tax payments on your behalf. We do not receive “Corrected” or “Amended” tax statements. If you ever receive one of these from your county, please call our Customer Service team as soon as possible so we can ensure the correct amount of personal property tax is paid from your escrow account.
Some states issue “Supplemental” or “Unsecured” tax bills. These types of personal property tax bills are not provided to Guild and are the homeowner’s responsibility.
If you ever receive a tax bill or notice and have questions or concerns check out the FAQs on our website. If your questions are still not answered, then you can call our Customer Service team and we’ll be happy to help you!
How to calculate property tax
If you want to find out how much your personal property tax payment will be, you can use this mortgage payment calculator. After adding information about your loan (down payment, loan amount, city and state), the total mortgage payment calculator will show you how much your monthly property tax will be.