Figuring Real Estate Taxes in Charlotte- not as easy as you might think…
Charlotte NC In NC, you need to know your Tax Location, and two numbers, the Tax Rate and the Tax Value. The Tax Location is printed on your MLS sheet…no MLS sheet? You’ll have to find out for yourself- don’t worry I’ll explain later!
The Tax Value (TV) is printed on the listings. It is usually some percentage of the Listing or asking price. Tax Value should always be Lower than Asking price, if it isn’t, the property is distressed.
Once you have the Tax Value, you multiply by the Tax Rate, this is set by our local governments, Mecklenburg County and the city of Charlotte, and that is 1.29 per hundred of Assessed Value.
So, if the Asking price was $300,000, (3-4000 sf home) and the Tax Value (TV) was $200,000, and the Tax Location (also on the listing)was the City of Charlotte, then 1.29 x 2000= $2,580. There is no additional school tax, no Homestead exemption (except for those over 65 on limited incomes or disabled), this is your total real estate tax.
How To Figure Charlotte NC Property Taxes
Lets look at these numbers in detail.
Tax Value – This once was a “drive by” assesment by the taxing authority, now it is done by computer programs called CAMA (Computer Assisted Mass Appraisals) , and Mecklenburg County is finishing a reassesment begun in 2003. Reassessment happens every 5-8 years, so this value is typically a look backward at the homes value. That is why the List Price should always be More than the Tax value, assuming there is Appreciation and Not depreciation in a given neighborhood, make sense?
So, now that we’ve done the easy part (ha!) , keeping up with the more than 75 rates in the area is more complicated. Here are a few for Mecklenburg County– I’ll research others in the coming weeks.
These are the Tax Locations-County + City (if any)
you have the county, and then if you are in the Incorporated City, also City taxes. Many of the surrounding counties are quite a bit less than Mecklenburg, more on that in a future post. Rates below include county and city taxes, there are no “school taxes” and water and sewer is extra.
Un-incorporated Mecklenburg County $1.0175/hundred
City of Charlotte 1.2973
Mint Hill 1.1137
So, to sum up, you take a property’s TV and divide by 100, then multiply by the tax rate, and there you have it. A property with a TV of $100,000, in the City of Charlotte, pays taxes of 1,297 per year….likewise a property with a TV of $1Million, in the City of Charlotte, pays, $12, 973 taxes per year.
I hope this has helped, for the most complete discussion of rates, evaluations, appeals and the entire system, check this link from April 2008 from the University of North Carolina at Chapel Hill.
Need more details? Other Questions? Please don’t hesitate to give me a call at 704-351-1519.
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