Procedure Of Paying Real Estate Property Tax

Procedure of paying Real estate property tax

There are ways to avoid, reduce or delay taxes, even if only for a brief period of time. We will now discuss real estate tax schemes.


Property taxes are calculated on the appraisal value assigned by local governments. 


Tax reduction provides a steep decline in investor taxes on new developments built between 2005 and 2008. It works as follows: Every two years property taxes increase 20% on the normal tax rate until the 11th year, when the tax acquires the normal rate.

During the first two years of the reduction, the property tax will be a nominal amount. Then it keeps increasing for every two years.

So if you buy an apartment in a building with tax reduction in the first year and sell it in the sixth, the new owner will have another four years of reduced tax.

--Shailaja K