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What Should Buyers Expect To Pay In Property Tax?

Home buyers typically know their price range and approximate mortgage rate. After all, without knowing those two things, it'd be much more difficult to calculate their potential monthly mortgage payment. But those aren't the only two factors that determine how much owning a particular house will cost. For example, property tax is also a factor, and it can add a significant amount to your homeownership expenses. So what should prospective buyers expect to pay? Well, according to ATTOM Data Solutions' most recent property tax analysis, the average annual tax on single-family homes in the U.S. was $3,785 last year. That's up 1.8 percent from the year before – the second smallest increase in five years. Rick Sharga, executive vice president of market intelligence at ATTOM, says they're likely to go up further this year. “The real surprise is that the tax increases weren't higher, which suggests that tax assessments are lagging behind rising property values, and will likely continue to go up in 2022,” Sharga said. Of course, where you're buying matters. Some neighborhoods have higher taxes than others, so prospective buyers should be sure to check their potential tax when calculating their costs before buying.