Real Estate Property Tax

While buying a property, it becomes necessary to pay-off all the taxes associated with it. Therefore, real estate transfer tax is one of the important steps to buy a new home. A real estate transfer tax is a type of tax imposed by the governing authorities of the area where the home has been bought. Different states, countries and the municipalities charge this compulsory real estate property tax on the privilege of the transfer of the property and homes within jurisdiction. Normally, the total transfer tax varies from states to states in the United States. In Colorado the real estate property tax is as low as 0.1% while in District of Columbia it is about 2.2%.

Some of the states provide certain exemptions on real estate property tax on the basis of buyer’s status and income level or the buying status. The U.S. state of Maryland provides a heavy exemption of about one percent for the first-time buyers. Whereas, states like District of Washington split the tax paying responsibility between the buyer and the seller. However, it is advised to check with the area of jurisdiction and involving parties about the details of the real estate property tax.