Many first time homeowners think they can afford more home than they actually can, since they see the transaction as a one-time lump sum after which they'll be free and clear on their Georgetown, Ontario homes. If you're a first time home buyer, we're sorry to burst your bubble, but you can expect to pay hundreds of dollars over and above your mortgage on a quarterly basis. One of the components of this extra money is property tax. We'll lay out the basics on property taxes for the benefit of those who don't know.

Who charges property tax?

The city or county that your home is located in has the right to charge you property taxes. For instance, if you bought real estate Humber Valley Village your taxes would go to the City of Toronto. If you bought land in a rural community, even if it had no house on it, you will still have to pay property taxes to the county it is located in. Here in Jersey City, property taxes are paid to the city council.

Where are property taxes used?

The elected administration of your city or rural county fills the community's coffers from the property taxes of local residents. This means that anything paid for with city money is financed by your property taxes. If you lived in Arlington, the city council's salary and therefore the mortgages on their Arlington homes are funded by your property taxes, as would city improvements like road repairs, graffiti removal, and parks maintenance, and city services like garbage collection and animal control.

How do I figure out how much tax to pay?

Property taxes are usually a percentage of the total value of the land and the buildings on it. If you were buying a resale home from an agent at Brantford Realty, he or she would be able to tell you what your property taxes would be. Private citizens buying homes on their own should ask the home's previous owners about tax rates, and anyone who is building their home from scratch will have to have an inspector come in to assess the value of the property.

What are the tax rates in Jersey City?

The property tax rate in Jersey City is $45.48 per $1,000 of assessed value, which is just over 4.5%. The median sales price for a home in Jersey City is $250,000, so the average homeowner's taxes would amount to $11,370 per year. While private home owners at Lotus Yorkville have no choice but to pay their taxes to the city of Toronto and owners of Jersey City residences don't have a choice either, business owners can apply for city tax incentives to lower their rates.