Montgomery County, located in Pennsylvania, is a great place to buy real estate. As with any purchase, it is essential to understand all the associated taxes and fees, including local real estate taxes. Understanding these taxes can help potential homeowners know what to expect when buying property in Montgomery County.
Real Estate Property Tax Rates
Real estate taxes are calculated based on the assessed value of a property. Montgomery County has four (4) different property tax rates, based on two different categories. The categories are:
- Owner-occupied property taxes range from 0.63% to 1.08%.
- Non-owner occupied property taxes range from 0.82% to 1.32%.
County Real Estate Transfer Tax
In addition to property taxes, Montgomery County charges a real estate transfer tax for all property transfers, whether for a sale or a re-finance. The rate of the real estate transfer tax is 1%, and it is based on the cost of the transfer or sale.
Fees and Surcharges
The final taxes to consider when purchasing a property in Montgomery County are fees and surcharges. These include an emergency services surcharge of $16; a stormwater fee of $35; a state deed transfer tax of 1%; and a state use tax of 1%.
Conclusion
When considering buying real estate in Montgomery County, it’s important to understand all of the taxes, fees, and surcharges associated with the purchase. Understanding the property tax rates, real estate transfer tax, and other fees is essential in order to create a realistic budget.