Property taxes in Reading, PA are based on the assessed value of the property and collected by local government. The Matt Wolf Team at Berks Real Estate with RE/MAX can help you understand how real estate taxes are used and what effect they can have on your mortgage.
The Matt Wolf Team specializes in residential real estate in Berks County and the surrounding counties in southeastern Pennsylvania. Whether you are looking for a starter home, an estate home, or something in between, we can help you find the ideal property to fit your budget and lifestyle.
When house hunting, you can save time by browsing the listings on our website. They are updated daily and provide information about neighborhoods and property value estimates, as well as individual home listings with photos and descriptions.
How is Property Tax Revenue Used?
Although most of us tend to think our property taxes are too high, the revenue they generate is primarily used to pay for community services we rely on every day, such as:
- Public schools: Public schools get their funding from many different sources – federal government, state government, fundraising – but, in most states, the majority of it comes from property taxes. In communities known for their great schools, property taxes are typically higher because higher rated schools generally command higher home prices.
- Public Road Maintenance: It costs money for the city to maintain, repair, and remove snow from the roads we drive on every day, and the majority of it comes from property tax payments. In some areas, property tax bills also include certain utility costs, such as water and sewer or garbage collection.
- Public Safety: Property taxes also fund most of the budgets for police and fire protection services. This includes not only the salary and benefits for police and fire personnel, but also the cost of acquiring and maintaining buildings, police cars and fire engines. As with public schools, strong public safety services often have a positive influence on property values.
- Administration: In most communities, real estate tax revenues pay for the operation of local government offices. This includes salaries and benefits for municipal administrative staff, as well as the buildings that house them.
How Property Taxes Affect Your Mortgage
The average property tax for homes in the city of Reading, PA is $1,133 per year on a home with a median assessed value of $64,000. The rate is, on average, 1.77% of the home’s fair market value. The higher the home’s value, the higher the property taxes will be.
Your monthly mortgage payment will consist of the principal and interest on your home loan, as well as taxes and insurance. In most cases, your lender will put aside a portion of your monthly mortgage payment in an escrow account, and use it to pay your property taxes and homeowners insurance (on your behalf) when they are due.
With property taxes of about $1,133 per year on your $64,000 home, approximately $94.00 per month will be added to your mortgage payment. Of course, government tax assessments can also increase (or decrease) over time. Remodeling your home may also trigger a reassessment of your property value (and a higher tax bill), so it’s important to be prepared for any changes.
When buying a home in Reading, PA, don’t be caught off guard by property taxes. The Matt Wolf Team can explain everything you need to know and help you find a home that meets your family’s needs. Call Berks Real Estate at 610-685-3189 to find out more about us.
Here is just a small selection of homes that are available in Reading, PA.
To view more listings in Berks County, please visit our Advanced Search function here: Search for Berks County Real Estate
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