{"id":2237,"date":"2016-04-15T09:38:08","date_gmt":"2016-04-15T09:38:08","guid":{"rendered":"https:\/\/www.movoto.com\/foundation\/?p=2237"},"modified":"2016-04-15T09:38:08","modified_gmt":"2016-04-15T09:38:08","slug":"raleigh-property-tax-how-does-it-compare-to-other-major-cities","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/raleigh-property-tax-how-does-it-compare-to-other-major-cities\/","title":{"rendered":"Raleigh Property Tax: How Does it Compare to Other Major Cities?"},"content":{"rendered":"

When you purchase a home in Raleigh, North Carolina<\/a>, it\u2019s important that you purchase a home that you can afford. The amount of your mortgage payment is a pretty reasonable indication of affordability, but there are also other factors. In particular, Raleigh property tax is a real cost that homeowners must pay each year. Homebuyers must factor the cost of property taxes into their decision to purchase a home.<\/p>\n

Understanding Property Taxes<\/b><\/p>\n

\"Raleigh<\/p>\n

If you are purchasing a home in Raleigh, paying taxes comes with the territory. In fact, property taxes are common for homeowners throughout the United States. By understanding your property taxes, you can make an informed decision about whether or not you should purchase a home.<\/p>\n

The City of Raleigh uses property taxes for a number of different expenses. In general, property taxes cover the cost of maintenance and operations. Taxes also help provide salaries for police officers and help the city provide cultural resources to its residents.<\/p>\n

Raleigh recently experienced a tax increase of $.0212, which increased the average tax bill for residents who own a single-family home by $42.20 for homes valued at $200,000. City Manager Ruffin Hall explains the increase, \u201cPopulation and service demand growth have rebounded since the Great Recession, and with the (2014-2015) budget, Raleigh is investing additional operating and significant capital revenues in the highest return for our community.<\/p>\n

How Property Taxes Are Calculated<\/b><\/p>\n

It\u2019s important to note that tax rates are predetermined. The current tax rate for property taxes in Raleigh<\/a> is $.4038, and the rate is assessed against each $100 value. If you choose to purchase a home in the city, you are responsible for both city taxes and municipal taxes. Raleigh is in Wake County; therefore, residents who live in the city would have to pay the Wake County tax rate of $.578 per $100 as well.<\/p>\n

Example of Property Tax Calculation<\/b><\/p>\n

A home that has an assessed value of $200,000 is responsible for $2,001.60 in taxes each year.<\/p>\n

Step 1.<\/b> Divide your property\u2019s assessed value by 100.<\/p>\n

$200,000\/100 = $2,000<\/p>\n

Step 2.<\/b> Multiply the value from Step 1 by the sum of Wake County\u2019s tax rate and Raleigh\u2019s tax rate.<\/p>\n

$2,000 x (.578 + .4038) = $1,981.60<\/p>\n

Step 3.<\/b> Add additional fees, such as fees for recycling.<\/p>\n

$1,981.60 + $20 = $2,001.60<\/p>\n

A resident living in a typical single-family home in the city limits of Raleigh can expect to pay an extra $2,000 each year beyond their mortgage, insurance, and maintenance costs. In this scenario, the property taxes add $166.80 to the household budget each month.<\/p>\n

If you choose to live outside of the city limits, you won\u2019t have to worry about paying Raleigh\u2019s property taxes. You will only be responsible for Wake County\u2019s property taxes. Many people choose this option and save a significant amount of money each year.<\/p>\n

How Does Raleigh\u2019s Property Taxes Compare to other Cities?<\/b><\/p>\n

\"Raleigh<\/p>\n

When you purchase a home in Raleigh, you want to make sure it\u2019s the best deal for you. You research schools, historical home values, and other locations in the state of North Carolina. You want to get the best value for your money.<\/p>\n

In terms of property tax, it\u2019s important to know how Raleigh compares to other areas in the state.<\/p>\n

County taxes in Mecklenburg (1.08 percent), Forsyth (1.02 percent), and Durham (1.18 percent), and Orange (1.30) counties are significantly higher than Wake County\u2019s taxes. Although both Durham and Orange County are less than an hour from Wake County, the property taxes in these areas are significantly more expensive than Wake County\u2019s property taxes.<\/p>\n

To get a better picture, you should compare the property tax rates of the 10 Best Cities in North Carolina<\/a>, to see how each property tax rate stacks up to Raleigh\u2019s tax rate of 1.0355 percent.<\/p>\n