If you’re thinking about buying a condo or already own one, you may be asking, do you pay property tax on a condo? The short answer is yes. Just like any other form of real estate, condos are taxed annually based on their assessed value. But there are a few key differences between condo taxes and taxes for standalone homes that you should know.
Condo Owners Do Pay Property Tax—Just Like Homeowners
Owning a condominium means you legally own your individual unit and share ownership of common areas (like hallways, elevators, or a pool). Since you own real estate, you’re required to pay property tax on it.
Unlike renters, who only pay property tax indirectly through rent, condo owners are directly responsible. Your local tax assessor determines the value of your condo and calculates annual taxes based on that value. So yes—do condo owners pay property tax? Absolutely.
How Are Condo Property Taxes Calculated?
Your tax bill is based on the assessed value of your individual unit, not the whole building. Local governments use this value and apply a millage rate (or tax rate) to determine your annual bill. In most areas, you’ll receive a tax notice once a year, and you may be able to pay it directly or through your mortgage escrow account.
Key factors that affect your condo tax bill:
- Unit size and market value
- Location and local tax rates
- Recent upgrades or renovations
- Comparable property sales
This means your condo could have lower property taxes than a similarly priced house if shared amenities reduce your unit’s assessed value.
What About Condo Fees vs Property Taxes?
It’s easy to confuse property taxes with your monthly condo association dues (HOA fees), but they’re not the same. Condo association fees cover:
- Building maintenance
- Landscaping
- Insurance for common areas
- Amenities like gyms or pools
Property taxes, on the other hand, go to your local government and help fund public services like schools, road repair, police, and fire departments. Even if you pay high condo fees, you’re still responsible for real estate taxes for your individual unit.
Do Condos Have Higher or Lower Property Taxes?
In general, condos tend to have lower assessed values than single-family homes in the same area, which can result in lower taxes. However, this varies by location. Some high-end condo units in major cities may have tax bills that rival—or exceed—those of houses.
Comparing condo vs house property tax rates is important when budgeting for homeownership.
Can You Deduct Condo Property Taxes?
Yes! Just like with a house, the property tax you pay on a condo is deductible if you itemize your deductions on your federal tax return (subject to IRS limits). Keep records of your annual tax statements if you plan to deduct them.
Final Thoughts
So, do you pay property tax on a condo? Yes—you’re responsible for annual property taxes based on your unit’s assessed value. Even though condo ownership feels different than owning a house, the tax rules are very similar. Make sure to budget for both property taxes and HOA fees when calculating your total cost of living in a condo.
