How Do Property Taxes Work?

Property taxes are levied by local governments to fund services like schools, roads, and public safety. They’re based on your property’s assessed value and local tax rate, which can vary significantly by region.

In my experience, homeowners should review their tax assessments annually — sometimes they’re higher than they should be, and appeals can save money. Understanding how property taxes fit into your monthly and annual budget helps ensure no surprises, especially for first-time buyers.