Milwaukee Property Tax Rate

If you are thinking about selling your home in Milwaukee, you may want to consider the markets and the rates of property tax. Milwaukee is a growing and vibrant city that has seen continuous growth over the past decade. As a city that offers beautiful parks, thriving entertainment, and cultural experiences, it’s not surprising that the local real estate values have continued to increase over the past few years.

When property values increase, the annual property tax rates go up. If you are considering selling your home to a cash home buyer in Glendale or Milwaukee, it’s a good idea to know your current rates to help you determine if it’s a good time to sell. In a seller’s market, it may seem like it’s always a good time to sell, but you don’t want to end up on the hook for the larger portion of your yearly taxes. 

Milwaukee has a property tax rate that is slightly above the national average. The good news for Milwaukee residents is that the ten-year trend in property taxes is a reduction of 0.41%. Property tax funds are collected and used to provide essential services for the community like schools, roads, and social services. In this article, we will examine the current property tax rates in Milwaukee, the possibility of future tax breaks, and if the property tax in Milwaukee makes it a good time to sell your home. 

Milwaukee Property Tax Rate

What Are Milwaukee Property Tax Rates?

Knowing when is the best time to sell a house, whether you use a real estate broker or one of many companies that buy houses Wisconsin has to offer, is to understand your property tax burden and how it is calculated. 

As a homeowner, you will be responsible for paying property taxes annually that are determined by a mill rate. Mill rates can seem complicated, however, they are based on fair calculations of your tax burden based on the current market value of your home. To break down your property tax amount in any given year, you will need to work with an assessor to gain the current value of your home to complete the calculation.

When the city of Milwaukee completes its annual budget, determinations will be made where increases need to be made through property taxing. The property tax calculation is:

(Mill rate x Property value) / 1000 = Amount you will pay in property taxes

In simple terms, this means that you will generally pay a certain dollar amount determined by the mill rate on every $1,000 of the value of your home. For example, if your home’s value is $250,000 and the mill rate is 21.45, your calculated rate would be:

(250.000 x 21.45) / 1000 = $5,362.50

In Milwaukee, the 2021 mill rate is 26.16 with a median house value of $153,600. This means that the median property tax would be:

(153,600 x 26.16) / 1000 = $4,018.18

In most cases, homeowners choose to finance their property taxes and include it with their monthly mortgage payments to reduce the burden. In Milwaukee, you will be adding an additional $334.85 to your monthly mortgage payment. 

Tax Rates By County

The property taxes that you pay in Milwaukee and anywhere around the country are used as the principal source of income to the county. The county administration is the entity that provides all services to the town or city. These services include the school boards, garbage collection, road services, social services, emergency services like the Fire Department, and public transportation.

In most cases, if you live in a larger city or county like Milwaukee, you are going to pay slightly higher property tax rates due to the amount of available service in the area. You can find your rates using this property tax calculator.  

We are going to take a look at Milwaukee’s property tax rates and rates for the surrounding counties in 2021 based on the median house value of $150,000.

CountyTotal Property TaxMill RatePercentage of Property Value
Milwaukee3360.0022.402.24%
Waukesha$2265.0015.101.51%
Washington$2310.0015.401.54%
Ozaukee$2370.0015.801.58%
Racine$2835.0018.351.83%

Will Milwaukee Reduce Property Tax Rates By 2022?

As the new year begins, Milwaukee residents can expect a little bit of Holiday cheer on their new property tax billing. Statewide property tax decreases by up to 3% will affect all residents and allow them to believe the bad days of the previous decade are behind them. Between 2001 and 2011, the property tax increase was a whopping 31% hike that was difficult for many homeowners to swallow. In the past decade, the increase has been dramatically reduced to a workable 1%. That 10-year trend appears to be continuing into 2022.

During the pandemic of 2020, Wisconsin legislative parties decided to use some of the relief money that they received to reduce the tax burden on their residents. Many homeowners had to consider selling to companies that advertise “We buy houses Milwaukee’, just to avoid financial hardships during the pandemic.

The total tax cuts reached $3.4 billion dollars, with $650 million being put towards reducing the statewide property taxes. The budget intends to pay two-thirds of the education budget with this money, which reduces the property tax requirements and gives homeowners a bit of a break on their tax bills. 

This budget estimate does come with some restraints. If your county is voting to add new educational buildings or to raise their amount of operating cash, the drop in property taxes may not show up on your bill. In fact, these counties may see a slight rise in their tax rates. 

Tax Exemption Request Process in Milwaukee

Tax Exemption Request Process in Milwaukee

Property taxes are an unavoidable burden when you own a home. However, Wisconsin does offer some tax exemptions to citizens who qualify which can help to eliminate your tax burden. While every state offers different exceptions for homeowners, many offer relief for veterans and seniors. 

In Wisconsin, the application process is relatively simple. You can visit the County Assessor’s office website for an online application. You will get a list of the necessary documentation that you will have to include with your application. Some of the documents that you will need include a copy of your mortgage, an up-to-date property assessment, a copy of your tax returns for the previous year, and any outstanding liens on your property.

Applying for a property tax exemption allows homeowners to save on some portion of their tax bill in Milwaukee, Wi making it easier for them to retain homeownership. Some of the most common tax exemptions offered by Milwaukee county include the Homestead Exemption, Seniors Exemption, Disability Exemption, and the Disabled Veteran Exemption.

Homestead Exemption

  • This exemption applies to your owned residence only and not attached land. It is most commonly extended to those that are in a limited income bracket.

Senior Exemption

  • Applies to residents that own their home and are over the age of 65. Property taxes can be frozen or deferred. Most qualified applicants are in the low-income brackets.

Disabled Exemption

  • For residents with disabilities, the tax burden can be reduced through the exemption of a portion of the taxable income or reduction of assessment rates. 

Disabled Veterans Exemption

  • Veterans that have been injured and become disabled during their service can qualify for a partial or full exemption from their property taxes that is forwarded to their surviving spouse. 

To apply for any of the above exemptions, you will need to get an application from your County Assessor’s Office. Your application must be completed and handed in by March 1st of the year you are making the request. The county Assessor will review your application and any supporting documentation that you have provided and determine if you qualify for a property tax exemption. 

If your application is denied, there is an appeals process that you can pursue. You will need to contact the Assessor’s Office during Open Book and request an application for an appeal. Your application that includes supporting evidence that you qualify for an exemption has to be submitted to the Office of the Assessor by the third Monday in May. Your appeal will then be processed and reviewed by the Board of Assessors and a final decision will be made. 

Should You Sell Your House in Milwaukee?

Whether you are going to sell your house using a real estate broker or selling a house as-is for cash, it’s important to know when the best time is to get the highest asking price. The goal for most home sellers is to make a bit of profit, and those numbers can be determined by many different factors including your property tax rates. 

In 2022, the property tax rates should drop by a 3% dip. However, the Milwaukee area still ranks fairly high on the National average making the tax burden tough for some residents to manage. 

When selling a home, both the buyer and the seller are responsible for paying a portion of the owed property taxes for the year. If you are the seller and you close on your house in June, you will owe the property taxes from the beginning of the year until your closing date. Your buyer will be responsible for the remaining balance of property taxes for the rest of the year. 

For sellers that want to save money on their property tax bill, it’s best to sell closer to the beginning of the year. In Milwaukee, with the winter season continuing well into March and April, it can be difficult to get the best price on your home until the spring. For those that are serious about selling, listing your home in the early spring can help you drum up more interest from buyers and allow you to close with only a few months owing on your property tax bill.

Endnote

While property taxes are a necessary expense for homeowners, there are opportunities to get a break on your bill through special exemptions. Milwaukee has a high standard of living making its rates of property taxes slightly higher than other states. If you are considering selling your home in Milwaukee now is the time to take advantage of the seller’s market. 

Leave a Reply

Your email address will not be published. Required fields are marked *