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  • Writer's pictureRobert Sosower

Real Property Taxes

Real property taxes include the land and buildings on that land. Whereas your personal property and registered motor vehicles are not considered real estate. In North Carolina, there are no state property taxes, therefore the property taxes are a locally assessed and calculated tax, which each county individually determines and collects. Each taxing jurisdiction (i.e., county) determines the tax rates depending on the budget that they need for that fiscal year and the North Carolina Department of Revenue regulates this process.

When property is being bought and sold during the year, North Carolina law requires that the property tax is prorated amongst the seller and buyer, unless otherwise provided by contract. The closing attorney calculates the property tax proration, which is then disclosed on the settlement statement. Additionally, sellers must pay a one-time real estate transfer fee, called excise tax or stamp tax.

To calculate the property tax for your home, you first have to find out what your assessed taxable value is for your home, which can be found online. For example, if your assessed taxable value is $200,000 (for your real estate), you then divide that by 100 which would equal $2000 (as a taxable value). You then multiply your taxable value of $2000 by your local county tax rate (.32 for example) and that will give you your property tax owed for the year. Therefore, $2000 multiplied by .32 equals $640 (as your property tax owed for the year). Please reach out to our law firm if you have any questions about your real property taxes.

Disclaimer No Attorney-Client Relationship Created by Use of this Website: Neither your receipt of information from this website nor your use of this website to contact The Lancaster Law Firm or one of its attorneys creates an attorney-client relationship between you and The Lancaster Law Firm. As a matter of policy, The Lancaster Law Firm does not accept a new client without first investigating for possible conflicts of interests and obtaining/sending a signed engagement letter or email correspondence. Accordingly, you should not use this website to provide confidential information about a legal matter of yours to Lancaster Law Firm. No Legal Advice Intended: This website includes information about current, past, and future potential legal issues and legal developments for educational purposes only. Such information is provided for informational purposes only and may not reflect the most recent legal developments. Posted information is not intended, and should not be taken, as legal advice for a particular set of circumstances you may be experiencing. You should contact an attorney for advice on specific legal problems.

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