Understanding Property Taxes in Your New State

When military families relocate, they often focus on BAH, mortgage rates, and VA loan eligibility—but property taxes are an equally important factor in your housing budget. Since property tax laws vary widely by state (and even by county), understanding how they’ll affect your payment is key to making a smart homebuying decision.

Whether you're PCSing from a low-tax state to a higher-tax region, or simply buying for the first time, here’s what you need to know.

1. Property Taxes Are Based on Value and Location

Each state sets its own tax rate, and within that, counties or municipalities calculate your bill based on assessed property value. In some states, taxes are recalculated annually; in others, they remain fixed until reassessment.

2. Some States Offer Military or Homestead Exemptions

Several states offer property tax breaks for Veterans, disabled service members, or those using the home as a primary residence. An MRES agent can help you research local exemptions and eligibility.

3. Property Taxes Affect Your Monthly Mortgage

Your lender will likely collect taxes through escrow, so they are rolled into your monthly mortgage payment. Even if your mortgage amount is within your BAH, a high property tax rate can push your payment over budget.

4. Taxes Can Impact Your Resale Value

High property taxes can make a home harder to sell, especially in soft markets. On the flip side, in growing areas with excellent schools, higher taxes may reflect valuable community services and infrastructure.

5. Ask Your Agent for a Tax Estimate

Before you make an offer, ask your MRES agent to run a property tax estimate based on recent sales, mill rates, and any changes in assessed value. This allows you to plan ahead and avoid surprises.

📍 Need help understanding your full housing costs in your next duty station? A MIL-Estate Support Network agent will guide you through the process. Connect with a local expert at www.mil-estatesupport.com.

#MissionMonday #PropertyTaxTips #MilitaryHomebuyers #PCSFinance #RealEstateEducation

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