Pennsylvania residents pay about 3% of their income on property taxes each year. However, that doesn’t mean all PA residents know what goes into these taxes.While taxes are a daily part of our lives, Bucks County residents deserve to know as much as they need for their property taxes. So what are they, and how does the Bucks County property tax compare to others in PA?
That’s what we’re here to look at today. Read on to learn more about Bucks County property taxes.
What Are Property Taxes?
Let’s start with the basics.
Property taxes are also known as ad valorem taxes and are incurred on real estate and other property types. The local government assesses them, and the owners are responsible for paying them.
Municipalities use property taxes to pay for public services like schools, police, fire departments, and construction. Property tax is usually determined by multiplying the property tax rate by the land’s value in question.
Any real estate is subject to property taxes. This includes buildings, structures, and even the land itself. Taxing authorities usually change the property tax rates every year.
If you’re living in Bucks County, a tax assessor will look at your local properties and come up with a fair tax rate. Failure to pay these taxes results in a lien against the property.
But what do tax assessors use to value your property? What goes into determining property taxes?
What Affects Property Taxes?
As we’ve established, property taxes vary from city to city, much less state to state. For Bucks County residents, this means your land will be judged very differently than other counties.
Some of the most important factors for determining property tax rates are as follows:
Where is your Bucks County property located exactly? What amenities surround it? How big is it?
Those are all factors that determine your property’s overall value. Some assessors look at the current market value of your land. They could even look at values from the past five or ten years.
The assessment rate is a crucial component of your property taxes. It measures how much of your property the municipality uses when calculating the tax owed. A 100% assessment rate means the county uses the entire value of your property.
Some municipalities charge a percentage for your property taxes. This means if an assessor puts a 5% tax on your property, you will pay about $5 for every $1,000 of your property’s value.
A mill rate might be used instead of a percentage. This is a much more square number, such as charging $1 for every $100 of the property’s value.
How High Are Property Taxes in Bucks County?
Now that you know how property taxes work, you might be wondering how much Bucks County residents are paying each year.
Those living in Bucks County pay about $4,000 each year in property taxes. This is about 1.27% of home value and about 4.6% of annual income.
Evidently, Bucks County has some of the highest property tax rates in the entire state and country. It ranks 63rd out of over 3,000 counties in the United States.
But how does it compare to other Pennsylvania counties?
How Do They Compare to Other PA Counties?
When comparing property taxes, Pennsylvania has a relatively high rate. The state average currently sits at around 2.28% and is up there, with Illinois, Texas, and Vermont for the country’s highest rates.
One of the highest taxed counties in Pennsylvania is Monroe County. They use a millage system and have a rate of about 164 to 229. This means their properties are valued at about 25% of the market value.
Allegheny County also has some of the highest rates around. Their effective tax rate hovers around 2.15%. Berks County fairs about the same, with an effective tax rate of 2.04%. Their millage hovers between seven mills to over 43 in some areas.
It’s hard to pinpoint why these rates are so high in certain areas or why it’s higher in Bucks County. The rates vary wildly from city to city, so understanding a root cause is tough.
Are Property Taxes Deductible?
Property taxes are deductible for Bucks County residents. Any money you pay to state and local departments for property taxes can be deducted.
Furthermore, you can get rebates on your property taxes if you meet specific requirements, such as income and demographic.
If you’re 65 years or older, are a widow or widower age 50 or older, or someone with disabilities age 18 years or older, you’re eligible for property tax or rent rebates. These assistance programs are available for all state residents.
How Do I Pay Property Taxes in PA?
There are two ways to pay your property taxes in Bucks County, PA. One is electronically using Pennsylvania’s dedicated payment portal. The other is physically, either by mail or in-person.
The state’s Department of Revenue lets you view, print, and pay your property taxes online. This means you can pay it with a credit or debit card as well as through an electronic check. Electronic payments let you set up recurring bills instead of having to input your payments each month manually.
You can also pay by mail a physical check by writing one out and sending it over mail. There are also places you can hand in your check each month.
Leverage Bucs County Property Tax Information Today
Anyone looking to own a home or purchase real estate has to be knowledgeable about property taxes. Use this guide to understand everything there is to know about your Bucks County property tax information.
Looking for reliable real estate agents in Bucks County, PA? Contact us today, and we’ll get you started on a solution right away!