Why do the Real Estate taxes appear to be higher on a new home?

When I have discussed Real Estate taxes on a new home that was comparable in price to a resale home that someone had seen, my quote is usually higher.

This does not mean that the new home has higher taxes than the resale home.

In many counties, taxes are based on a percentage of the sales price of the new home that you purchase .

If the seller is selling their home for a higher price than what they paid for the home, there is a good chance that the taxes will go up, once the county reassess the value of the home and land. Therefore the taxes on a new home and a resale home of comparable price, may be equivalent.

If the price that you are paying, is lower than what the homeowner paid for their home, your Real Estate taxes may not necessarily go down. Taxes may be assessed over a few years, by the county. Sometimes there is an increase in taxes over this few year time period. To be sure you will need to speak to the county department of taxation and assessment.

Real Estate taxes that you pay on a home, generally can be used as income tax deduction. You will need to consult with a tax advisor to see if you can “write off”  your Real Estate taxes.