You’re about to buy a new home in northwest Indiana. Maybe you’re ready to Live the Lake Life in La Porte County. Wherever you’re moving, this is likely one of the biggest purchases you’ll ever make. And with a monthly mortgage, you don’t want to be blindsided by additional expenses.
One expense you may not consider is your property tax. This expense is usually part of your monthly mortgage payment and contributes to the well-being of your local government and community services. So what are property taxes? The team at RE/MAX can explain.
A breakdown on property taxes
As the name suggests, property taxes are a tax you pay on the property (or properties) you own. These taxes are proportional to your property’s worth. That means that a home or property worth $500,000 will have a higher property tax than a home worth $200,000.
The money paid through property taxes is used to fund public services in counties, cities, towns and townships. Some of the services these taxes support include police and fire, building maintenance, infrastructure (road) repairs and more. Property taxes are an important part of healthy and vibrant communities.
Calculating property taxes in La Porte and beyond
The great news for La Porte County and northwest Indiana residents? Indiana has low property tax rates. But how is property tax calculated? Multiply your property’s estimated value by your county’s average tax rate.
Say your property is worth $200,000. In La Porte County, the average tax rate is 0.92%. You’d pay $200,000 x 0.92% = $1,840/year. That $1,840 is paid on your monthly mortgage over 12 months each year. That means you pay about $154 per month on property taxes for your $200,000 home.
How your property’s worth is determined?
In Indiana, the value of properties is assessed each year using mass appraisal techniques. Assessors look at data on the age, location and condition of your home or property and the surrounding properties. They also complete an annual adjustment that considers the real sales data of your property. These factors determine your property’s worth. Each year, your property will be assessed, and the value (and your taxes) can change. If your home is assessed for additions or other reasons, your property taxes may also change.
So now what?
If you’re looking to buy a home in La Porte County or northwest Indiana, talk to a realtor at RE/MAX County Wide 1st. Our team can help you determine the average property tax in the area you’re considering and will help explain the components of your mortgage. Contact us today for more support buying or selling your home.
