Taxes & Insurance
How do property taxes work when you own a home?
Updated Jul 1, 2026
The short answer
Property taxes are levied by local governments based on your home’s assessed value and the local tax rate, and they fund schools, roads, and services. They vary widely by location and can change as assessments and rates change. Most homeowners pay them monthly through an escrow account rather than in a lump sum, and they are a permanent part of the cost of owning.
Key points
- Set locally from assessed value times the tax rate.
- Vary widely by state, county, and city.
- Usually paid monthly via escrow.
- Can rise over time with reassessments.
Why they matter for affordability
Two identical homes in different towns can have very different monthly costs purely from property taxes. CandidCost’s True Cost engine includes local tax context so your estimate reflects where you are actually buying.
Put this to work
Sources
Every claim above traces to a public government source.
- ViewT1American Community Survey — housing cost tables
U.S. Census Bureau · Government / primary · 2023