Property taxes: why they change and how to plan

Plain-language guidance to help you budget and avoid surprises.

Why taxes change

Property taxes can change due to reassessments, rate changes, new levies, or municipal budget changes. Even if your property feels “the same,” the assessed value or rate can shift.

Budgeting for increases

Avoid building a budget that only works in the best case. If you can, plan for tax increases over time, especially in fast-changing markets.

• Ask for the most recent tax bill and any reassessment notices
• Check whether taxes are paid monthly with your lender or paid directly
• Create a small monthly buffer so annual increases don’t cause a cash crunch

Closing adjustments

Taxes are often adjusted at closing depending on what has been prepaid and how the closing date lines up with the tax period. This can increase your closing costs.