one town versus another before you choose where to buy. It shows how much you are paying in taxes relative to what a home is actually worth. Once you have narrowed your search to a specific town and property, the General Tax Rate is then used to calculate the actual, current tax bill for that home. This distinction matters because a higher-priced home in a town with a lower effective tax rate can often be a better long-term financial decision than a less expensive home in a town with a higher effective tax rate. Let me give you an example. These numbers are hypothetical but realistic.
Town A Home value: 1,000,000 Taxes: 30,000 Effective tax rate: 3 percent Town B Home value: 1,000,000 Taxes: 18,000 Effective tax rate: 1.8 percent
The difference in effective tax rate is significant. It shows that Town B collects less in taxes relative to home values, which often reflects a more efficient balance between property values and municipal tax needs.
Over time, towns with lower effective tax rates are often associated with factors such as:
• Strong buyer demand • More stable municipal budgeting
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