Real Estate Taxes in Wisconsin: Buying & Selling

Written by the ReZen Editorial Team

Property taxes are a significant part of homeownership in Wisconsin. This blog will help you understand how property taxes work, how they are calculated, and what you need to know when buying or selling property in Wisconsin. At ReZen, we specialize in the acquisition process, and will gladly help you with any sell or purchase.

How Property Taxes Are Calculated

Assessment of Property Value:

- Property taxes in Wisconsin are based on the assessed value of the property. The assessment is usually conducted annually by the local assessor’s office.
- The assessed value is intended to reflect the market value of the property.

Paying Property Taxes

Tax Payment Schedules:

- Property taxes in Wisconsin are typically due in two installments: January 31 and July 31.
- Some municipalities may have different schedules, so it’s important to check with your local treasurer’s office.
Methods of Payment:
- Payments can be made online, by mail, or in person at the local treasurer’s office.
- Many counties offer online portals for easy payment options.

Exemptions and Credits

Homestead Credit:

- The Homestead Credit is available to eligible homeowners and renters to help reduce the burden of property taxes.
- Eligibility is based on income and household size.
Veterans and Surviving Spouses Property Tax Credit:
- This credit is available to eligible veterans and surviving spouses who meet certain criteria.
Other Exemptions:
- Various exemptions are available for senior citizens, people with disabilities, and agricultural properties. It’s essential to check with local authorities for specific eligibility and application procedures.

Property Taxes When Buying and Selling

Prorating Taxes:

- During a real estate transaction, property taxes are typically prorated between the buyer and seller based on the closing date.
- The seller pays taxes up to the closing date, and the buyer is responsible for the remainder of the year.
Tax Implications for Buyers:
- Buyers should be aware of the property’s current assessment and tax rate to estimate future tax liabilities.
- It’s advisable to verify if there are any outstanding taxes that need to be settled at closing.
Tax Implications for Sellers:
- Sellers should ensure all taxes are paid up to date before closing.
- Any unpaid taxes can complicate the sale process and may need to be resolved through the closing process.

Tips for Managing Property Taxes

Stay Informed:

- Regularly check your property’s assessed value and understand how your local tax rates are set.
- Attend local government meetings where tax rates and assessments are discussed.
Appealing an Assessment:
- If you believe your property has been over-assessed, you have the right to appeal the assessment. This involves presenting evidence to support a lower valuation.
Budgeting for Taxes:
- Incorporate property taxes into your annual budget to avoid any financial surprises.
- Consider setting aside funds monthly to cover the biannual payments.

ReZen can give you a hand...

Navigating property taxes can be complex, but understanding the basics can help you manage your responsibilities effectively. Whether you’re a current homeowner, buying, or selling property, staying informed about property taxes in Wisconsin will help you make better financial decisions. At ReZen we analyse and create the best action plans for you to cover all these, get in contact with us for any assistance.

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