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How property taxes are calculated? (and how it affects buying a home) - YouTube
Channel: Homebuyer's School
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- In this video we talk about property taxes,
how are they assessed, how do you pay
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them, how are they calculated. That's
starting right now.
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- Welcome to Homebuyer's School,
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brought to you by Brookfield Residential.
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- Hi everyone, I'm Karl and welcome to
another Homebuyer's School video.
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A channel where you get the latest
strategies, tactics and tips from home
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buying experts. And remember, if this is
your first time on this channel and you
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wanna get the latest strategies from the
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So today I'm joined by Jessica McKnabb,
area manager with Brookfield Residential.
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And the question we're gonna
answer today is,
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how are property taxes calculated? So
Jessica, when you're buying a home
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obviously you know know how much
property taxes are you paying every year.
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So how are they calculated?
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- Yep. So that's one of the main questions
that we hear actually. Property taxes are
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assessed by the city and it will be
calculated based on the size of your
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actual land, any amenities in the area,
perhaps a school is going up, perhaps a
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certain bus station is coming about. So
that's typically how they're assessed.
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- So Jessica, how are property taxes
actually assessed? Like what actually
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does an assessor go in and do, to actually
figure out the amount that you pay?
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- For sure. So this is one of the main
questions people will ask.
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Usually the assessor will look at the size
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of your property, they'll look at the size of
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the home, the square footage that's
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sitting on that piece of property. It could
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be that it's a corner lot. It could be that it's
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a pie lot鈥攜ou have a little bit bigger of a
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lot. And then of course the amenities in
the area. If there's a grocery store, if
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there's a school in the area.
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- Okay. And do they also take into account
how many years that house鈥攍ike
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how old that house is?
Yeah?
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- Yep, absolutely.
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- Okay. And then how do property taxes
actually affect my personal taxes?
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- Mhmm, that's a great question. So if you
actually have your own home business
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for example, you have an office out of
your house, you can actually have
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deductions and tax write offs based on
that.
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- Oh okay. And are property taxes based
on the assessed price, or the actual
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purchase price of the house?
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- Based on the assessed price. So the
property taxes will be valued off of the
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size of the land typically and then the
house that sits on that piece of land.
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- Okay. And how often are they paid?
And how are they paid?
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- So you can pay them by 2 choices. You
can pay once a year or you can have them
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put it onto your mortgage and you can
have it as a monthly payment.
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- And if you do put it on your monthly
mortgage, does鈥擨 guess it's up to the city
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to increase it or decrease it
every year right?
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- Right.
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- Would you expect any increases or
decreases within the year? Or is it usually
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they give you an assessment at the
beginning of the year and that's how
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much you have to pay?
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- They'll give you an assessment once a
year, typically at the beginning of the year
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in the spring. And then it's from there if
you want to choose to pay it once or if
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you wanna pay it monthly. And earlier you
had asked about how they're paid, so you
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will actually go into your financial institute
or call them to put onto your monthly
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taxes, so any bank or branch. And they'll
pay it to the city for you.
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- And is it pretty much an expectation of
property taxes will increase every year?
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- They typically do. They can stay the
same, they do typically increase each year.
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- Okay. And is there anybody exempt from
paying property taxes?
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- There are actually. So some indigenous
cultures can be exempt, some veterans,
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some seniors. So there are certain parties
that can be exempt from property taxes.
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And you can go online actually onto the
government website and you find out to
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see if you're exempt.
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- Okay. So you have anything else to add
in terms of property taxes?
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- Nope, I think we covered it.
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- Awesome thank you.
So the question of the day I have for you
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is, did potential property taxes on home
actually influence your decision of buying
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that home? Let us know in the comment
section below. And remember, if you
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enjoyed this video, or found it helpful, hit
the thumbs up button, remember to
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comment, and remember to subscribe.
Thank you, and we'll catch you next time.
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- That's another edition of
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Homebuyer's School. Tune in next time
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for more expert tips and tricks, and visit
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homebuyersschool.ca to bring you one
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step closer to finding your dream home.
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