Property tax.
In plain English
Property tax is a recurring tax that cities, counties, and school districts levy on the assessed value of land and buildings. The bill is set by multiplying your property's assessed value by a local tax rate, so it varies widely by location. For most homeowners it is collected monthly as part of the mortgage payment and held in escrow, then paid to the government once or twice a year. It does not stop when the mortgage is paid off; property tax continues for as long as you own the home, and it can rise as assessments and rates change.
01Why it matters
Property tax is an ongoing cost that lasts as long as you own the home and can climb over time, so it belongs in any honest estimate of what a house really costs.
02The math, step by step
A home assessed at 300,000 dollars in an area with a 1.2 percent rate owes about 3,600 dollars a year, or roughly 300 dollars a month, on top of principal and interest, and it keeps coming after the loan is paid off.
03What this is NOT
Property tax is NOT tied to the mortgage. It is owed to the local government every year you own the property, even after the loan is fully paid.
04Receipts
Every figure on this page is sourced to a primary document. Tap to open the original.