Calculating Taxes and Mill Rates
Real estate taxes are generally the next largest expense for homeowners and, unlike the mortgage payment, they never go away. Downsizing your home is an easy way to minimize real estate taxes. Simply moving from a 3,000-square-foot home to a 1,500-square-foot home can cut your taxes by half. See the example below.via investopedia.com
Example - Downsizing Tax Liability
The owner of a 3,000-square-foot home assessed at $300,000 and taxed at a 30-mills-tax rate pays about $9,000 per year ($300,000 x 0.03) in real estate taxes, while a 1500-square-foot home assessed at $150,000 and taxed at a 30-mills-tax rate pays about $4,500 per year in real estate taxes. This means that if you trade down from a 3,000-square-foot home to a 1,500-square-foot home you could cut your taxes by 50%.
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