Do you own a property and wondering “Do you have to pay property taxes forever?” Its a good question and many of the property owners think about this question all the time.
What is Property Taxes?
Property taxes are taxes levied on real estate property by the government.
The amount of tax you pay depends on the value of your property. Property taxes are used to fund public services such as education, police and fire protection, and infrastructure.
If you own a home or rental property, you are responsible for paying property taxes. The tax is typically paid annually, but can also be paid in installments throughout the year.
Property taxes can be a significant expense for homeowners, so it’s important to plan accordingly when budgeting for your monthly expenses.
Do You Have to Pay Property Taxes Forever?
You have to continue paying Property Taxes(Real Estate Taxes) as long as you own the property.
If you sell the property, then the buyer become responsible for paying the taxes.
If you pass away and leave the property in a trust or its under an Estate, then the Living Trust or Estate will be responsible for making the Property(Real Estate) Tax Payments.
Typically the trustee will work with the heirs or family members and make necessary payments till the property can be transferred to the beneficiaries and then the beneficiaries become responsible for paying the taxes.
Who Needs to Pay Property Taxes?
Real estate property taxes are a big deal. They are often the largest single expense for real estate owners and must be paid every year. In most cases, the owner of the property is responsible for paying the property taxes.
This is true whether the property is a home, a rental property, or even an vacant lot. There are some exceptions, however. For example, if the property is leased under a triple net lease (NNN), the tenant may agree to pay the property taxes as part of their lease agreement.
Similarly, if the property is owned by a corporation or other entity, the tax liability may fall to that entity rather than the individual owners.
Ultimately, though, it is the responsibility of the real estate owner to ensure that property taxes are paid on time and in full.
If the renter fail to pay the taxes, the County will still collect the Property tax form the Real Estate Owner and the real estate owner(Landlord) will have to sue to tenant and collect any past due taxes form them.
Which States Do Not Have Property Taxes?
All 50 States have property taxes. There is no state in the US that doesn’t have any property tax. Several states don’t have income taxes but all state collect and use Property taxes for public safety and benefits.
What States Have the Least Property Tax?
Hawaii is not only the state for travelling but also to live, especially if you are looking for super low property taxes.
State of Hawaii has the lowest effective property tax rate. Current Property Tax Rate for State of Hawaii is at 0.31%.
What States Have the Highest Property Tax?
State of New Jersey has the highest Property Tax at 2.13%.