Whether we like it or not, taxes play a role in our buying choices and that rings especially true when it comes to purchasing a new property. Knowing about the Rhode Island property tax is crucial if you wish to purchase a home in the lovely coastal state.
Use this article as your main reference if you are interested in learning more about property tax rates in the state. We will also give you some tips that could help you lower your final property tax bill.
Stay tuned and learn more about property taxes in the great state of Rhode Island!
What Are the Property Tax Rates in Rhode Island?
To get things started, let’s first focus on the tax rates in Rhode Island. We can use the numbers provided by Rhode Island’s state government to gain more insight into their tax situation.
Property Tax Rates for Providence
The municipality of Providence is the most populous in the entire state. It should come as no surprise that the municipality’s property tax rate is also on the high side. The tax rate in question currently stands at $24.56.
Property tax rates will change based on which part of Providence you decide to purchase a home in.
You can opt to live in East Providence if you want a slightly lower tax rate. The property tax rate for that part of the state is currently $21.50.
Expect your taxes to increase if you decide to purchase a property in North Providence. Currently, the property tax rate for North Providence is 22.81.
The tax rates for Providence municipalities are among the highest in all of Rhode Island. You will have to pay a premium to live in that part of the state, but you can easily argue that doing so is worth it.
Rhode Island Municipalities Where Property Tax Rates Are Rising
Following trends is important if you are buying a home. It specifically matters from the standpoint of taxes because you could spend way more than you expected. That could happen if the property tax rates in the municipality you are staying in are trending up.
Cumberland is one Rhode Island municipality where that is currently happening.
For tax roll year 2020, the property tax rate for Cumberland was $14.32. That number recently ticked up to $14.74.
The municipality of Burrillville also saw a notable rise in its property tax rates. After closing at $16.01 for 2020, that rate climbed to $16.42 the following year. That represents one of the larger increases for any municipality in Rhode Island.
Property tax rates also went up recently for homeowners in Johnston. Property tax rates for Johnston were $22.89 in 2020. It climbed up a bit to where it currently sits at $23.24.
Consider the tax trends in the mentioned areas before you push through with any purchase. Given where those property tax rates are currently, you may be better off seeking a better deal elsewhere.
Rhode Island Municipalities Where Property Tax Rates Are Falling
On the flip side, you will also find municipalities in Rhode Island where the property tax rates are trending down. Now may be the perfect time to purchase a home in one of those areas.
In 2020, the property tax rate for Exeter was $15.57. That number has fallen considerably to $13.72. It’s a significant drop and one that could worth taking advantage of.
Foster is another municipality where property tax rates are currently trending down. The tax rate there was at $23.79 in 2020, but it went down to $21.34 this year. Now is as good a time as any to start looking for homes in that part of the state.
The property tax rates are also down in Cranston. Not too long ago, the tax rate was $20.77 Right now, the rate there is set at exactly $18.
Are Property Tax Rates in Rhode Island Considered High?
Buying a new home in Rhode Island is an enticing proposition. Once you get settled in, you will fall in love with the state’s charm and its welcoming residents. It does not hurt that Rhode Island can also offer some pretty spectacular views of the Atlantic Ocean.
The case for buying a home in Rhode Island is clear. If you and your family are looking for a long-term home, Rhode Island is hard to beat.
That said, we cannot ignore the realities of the tax situation in the state.
Rhode Island is in the top ten states with the highest property tax rate. If you are thinking of purchasing a home in Rhode Island, you need to be certain that you are ready to make that kind of financial commitment.
How to Lower Property Tax Rates in Rhode Island?
You cannot deny that property tax rates in Rhode Island are quite expensive compared to the rest of the country. But is that something you must live with?
Although property tax rates in the state are high , there is a chance that the number given to you is higher than what it should be. You can work on changing that.
Detailed below are things you can do to make the property tax rate for your Rhode Island home a bit more palatable.
Examine Your Tax Bill
If you did some research before signing the dotted line on your mortgage, you may already have an idea of how expensive the tax bill for your new property should be. That is why you may be caught off guard by the actual number on your bill.
You may be thinking that there’s no way the number is right. Notably, that is a possibility.
It is possible that the description of your property is not completely accurate. There may be elements associated with your property that someone detailed incorrectly.
Upon spotting those errors, you can speak to your local assessor and ask them to make some corrections. Once they make the corrections, your property tax rate should go down.
Guide Your Assessor during Their Evaluation
Why was the description of your home not fully reflective of its current state? Well, one possibility is that the assessor did not get the full picture.
During their walkthrough of your property, the assessor’s attention may only be on its positive characteristics. They may fail to see the issues that are already plaguing the property.
Prevent that from happening by joining the assessor during their evaluation. Point out everything they need to know about your Rhode Island home so they can produce an accurate assessment.
Check if Your Property Tax Rate Is in Line with Your Neighborhood
You can get a good idea of how much you will pay in taxes by researching the other homes in your area. Doing research is highly recommended, especially if the home you want to buy is pretty similar to others in the neighborhood.
Upon receiving your tax bill, you may be surprised by the number provided. For the most, you may be surprised because it is significantly out of line relative to what your neighbors got.
This is something you should consider discussing with your assessor. Give them a call and ask why your neighbors got better rates even though your properties are similar.
Hopefully, the assessor simply made a mistake. After correcting their error, you should get a lower rate.
File an Appeal
If you have already spoken to your assessor and pointed out the errors, they should respond by lowering your tax rate. Unfortunately, things do not always work out that way.
Your assessor may refuse to budge and admit their mistake. So, what can you do in that scenario?
In a situation like that, your best bet may be to work with a lawyer. Together with your lawyer, you can file an appeal to get another assessment of your property.
There is no guarantee that the appeal will work, but it may be your only option. Taking that action may also be preferable to paying higher taxes than they should be.
Seek Out Tax Exemptions
Working with an experienced real estate agent is a must because they can help introduce you to the best properties in a given area. If you are looking to save some money on taxes, they can help you out as well.
Speak to your real estate agent and ask them if there are any properties in your preferred area that feature tax exemptions. Check out the properties that feature exemptions and see if any of them pique your interest.
You may also be qualified for certain exemptions so ask about them too.
After learning more about Rhode Island property tax, you should now have a better understanding of what you need to do as you go through the process of purchasing your new home. Use the information provided here to find the best deals in the state, and then check if you can lower your taxes further.
Reach out to us at RI Home Store if you are looking to find your dream property in Rhode Island. Allow us to lend you our expertise, so your home search goes smoothly!