Most condo owners pay condo property tax divided into 12 equal parts included in their monthly mortgage payment. With tax season around the corner it is a good time to think about collecting any relevant tax documents sent by your mortgage lender so tax can be reported in your Federal income tax return. Condo owners have to collect housing information for their tax returns just like traditional homeowners. However, new condo owners or residents may be unclear on how condo property tax differs from other properties. Below are answers to the five most common condo property tax questions.
Condo property tax FAQs
Do condo fees include property taxes? The short answer is that condo fees cover a wide assortment of living expenses such as landscaping, maintenance, emergencies and building repair work but they do not include property taxes.
Do you have to pay property taxes on a condo? Yes, condos have property taxes assessed on them the same as townhouses and single-family houses do. The factors used to calculate the amount are the same across housing types and take property value, size, and location into account among many factors.
How are property taxes calculated on a condo? Since property taxes are based on the value of the condo itself they can vary greatly depending on location and property value. In general property taxes on a condo are 1.5 percent to 2.5 percent of the appraised property value. Re-assessments are done every few years to measure updated property value; the time frame in between re-assessments differs depending on the city and state of the condo.
How much is condo property tax? There is no exact answer to this question. As with a traditional house every condo owner’s property tax is different. Much like cost of living expenses can differ greatly from location to location, the amount of property taxes owed on a condo can differ as well. To illustrate this point consider the cost of a house or condo in Cincinnati, Ohio compared to Los Angeles, California. The same home would be assessed at a far higher value in L.A. due to the higher overall property values which would in turn increase owed property taxes.
Is condo property tax lower than townhouse property tax? When compared directly, condos and townhouses are both cheaper than purchasing a traditional house in the same market. When accounting for less property and square footage, this translates into lower property tax assessments for condos and townhouses. Because condos and townhouses are often similarly and on small plots of land, their property tax rates are comparable. A key difference is condo owners often share taxes on common areas such as lobbies, staircases, and amenities such as workout rooms whereas a townhouse owner owes all taxes on the associated land the townhouse is built on. As noted above, property size, assessed value, and location all play a factor in property tax calculation.
Son-Rise Property Management has been serving the property management needs of Bellingham and Whatcom County since 1996. Contact us today to see how we can help you find a rental property for your family or manage your rental properties.