Residential or commercial property; how to budget your property taxes

Residential and commercial properties are taxed differently, so it's important to understand the differences when budgeting for property taxes.

Residential property taxes are typically based on the assessed value of the property and the tax rate set by the local government. The assessed value is usually determined by the local assessor's office, and is based on factors such as the size of the property, the age of the building, and the condition of the property. In general, residential property taxes are lower than commercial property taxes.

Commercial property taxes are also based on the assessed value of the property, but the tax rate is often higher than for residential properties. Additionally, commercial properties are often subject to additional taxes and fees, such as business taxes, occupancy taxes, and other assessments.

When budgeting for property taxes, it's important to factor in the assessed value of the property, the tax rate, and any additional taxes or fees that may apply. It's also a good idea to review your property tax bill each year to ensure that you are being charged the correct amount, and to appeal your assessment if you believe it is too high. Finally, it's important to remember that property taxes can change over time, so it's a good idea to budget for potential increases in the future.