Mortgage glossary

Property Tax

A local tax based on property value or assessment rules.

Last updated 2026-05-04. Educational planning only.

Quick answer: A local tax based on property value or assessment rules.

Definition

A local tax based on property value or assessment rules.

Why it matters

Property Tax matters because buyers need to understand the full cash-flow impact of a mortgage before committing to a home.

Related formula

True monthly cost = loan payment + ownership costs + utilities + maintenance reserve

FAQ

What does Property Tax mean?

A local tax based on property value or assessment rules.

Why does it matter for affordability?

Property Tax can change the true monthly cost or cash required to buy a home.

Where can I test it?

Use the TrueCost calculator to see how the term affects payment, DTI, or leftover cash.