— Property

Property Tax for Real Estate Investors

4 Mins read

The Property Tax in California has been increased to $10,000 as of January 1st, 2017. This is in addition to the previous rate of $2,500. The increase is expected to help pay off the state’s budget deficit. Currently paying $2,500, the compelling new rate is $7,500.

Have you ever had to pay property taxes on a rental property? Did you find the process confusing?

The property tax system is one of those things you just don’t think about unless it directly impacts you. Most people are lucky enough never to have to deal with it.

But there are plenty of real estate investors who have had to go through the property tax nightmare, and it’s not fun. So what can you do?

In this article, we’ll discuss all the different ways you can pay property taxes on a rental property and which is best for you.

The property tax is a burden that every real estate investor must face. If you own a home in one of the many states across the United States, you likely have to pay property tax on it. It’s an obligation that you must deal with whether you like it.

Property Tax

How can you get out of your house’s tax sale?

If you’re a landlord and have more than one property, the chances are you’ve experienced the dreaded “tax sale”. It’s the process where the government takes over your property after you’ve failed to pay your property taxes.

While the process sounds scary, it’s actually straightforward. The first step is to determine if your property has been “tax-liened”. You have to pay off the lien before the government can sell your parcel if it has.

This can be done in two ways. The first is by applying to the county for a “Tax Sale Certificate”, which can then be used to file for bankruptcy. The second is paying off the lien yourself, which is the fastest and most direct route.

How can you stop a tax sale from happening?

Property tax is a form of taxation paid by owners of real estate. It is based on the fair market value of a property and is calculated by local authorities. In some cases, it can affect the ability to rent out a property.

You can find out what the property taxes are for your property. You need to contact the local tax office and ask them how much your property is worth. If you do not know how much your home is worth, you should use a local appraiser.

Once you have found out the value of your home, you can work out what you need to pay the taxman. If you are renting out a property, you can either ask the landlord to pay the taxes or you can deduct the costs from your rental income.

How to avoid paying property taxes?

If you’re like most people, you’ve probably never thought about the property tax system. It’s a thing that doesn’t affect you directly.

But, you might be surprised to learn that this is a massive problem for many real estate investors.

When you invest in real estate, you’re not only buying the property itself; you’re buying a piece of the property tax bill. If you don’t know how much the property taxes are, you’ll be shocked when you find out.

While many of the properties you invest in may not have a huge tax burden, you still need to know the total property tax bill.

Most of us never actually pay the total amount of property tax. We spend the portion that covers the actual costs of running the property.

The property tax bill is split into two separate categories in most cases. One is called the “taxable” portion, and the other is called the cable” portion.

You can only pay the “taxable” portion. The “non-taxable” amount is the part that covers the actual cost of running the property, like utilities and maintenance.

If you’re a real estate investor, you might be surprised to learn that you can deduct some of this money.

How to pay property taxes promptly?

When you decide to invest in real estate, you have to consider your property tax situation before you start spending money.

There are different types of properties, and the rules for each vary. In the United States, the property tax system is highly complex and often requires you to pay both local and state taxes.

If you own a single-family home, you’ll have to pay property taxes on both the house and the land. You may also have to pay the county’s sales tax. If you own multiple properties, you’ll have to calculate the taxes on each parcel.

You’ll also have to pay real estate transfer taxes. The tax rates for this vary based on the state you’re in.

 Frequently asked questions About Property Tax.

Q: Can property taxes be reduced or eliminated for a real estate investor?

A: Yes. There are some states where it’s possible. In North Carolina, it’s tough.

Q: Is there a way to reduce property taxes in Texas?

A: It depends on your property. A good location can make a difference in your taxes.

Q: If you are in a rental property, does this affect you?

A: Most states have a rental tax. However, it’s not always a flat rate tax. For example, the Texas Property Tax Code says that the tax is 4% of the property’s market value.

Q: How do you find out how much your property tax is?

A: Some companies can help you with that.

Top Myths About Property Tax

1. The average American pays zero property tax.

2. The tax is just an excuse to take more money from us.

3. The system works great, but it is too easy to abuse it.

4. The government takes the money we pay them and gives it to other people.

5. It is the “government’s job” to protect us.


In conclusion, property taxes are a significant source of stress for many real estate investors. This is why it’s critical to be aware of reducing your property taxes.

Reducing property taxes is more accessible than most people think. The majority of states offer a property tax exemption to investors. This means that other people can often pay property taxes.

Many people pay their property taxes by taking advantage of a property tax credit. In most cases, property tax credits are available to people who own rental properties.

This can be a huge benefit. You can use these credits to reduce your taxes on your primary residence.

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About author
Tristan McCue is a 26-year-old junior programmer who enjoys reading, binge-watching boxed sets, and appearing in the background on TV. He is smart and friendly, but can also be very evil and a bit lazy.He is an Australian Christian. He has a post-graduate degree in computing.
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