Property Taxes and the Second-Home Tax Bump in St. George

Here is a St. George detail that surprises a lot of buyers, especially second-home shoppers: your property tax bill can roughly double depending on whether the home is your primary residence. It is worth understanding before you buy.

The primary-residence exemption

Utah gives owner-occupants a big break: a 45% residential exemption, which means you only pay property tax on 55% of the home's value. For a primary residence, that works out to an effective rate of roughly half a percent of value around here. To qualify, the home has to be your primary domicile (generally living there at least 183 days a year), and you have to file for the exemption with the Washington County Assessor after you close. Do not skip that step.

The second-home and rental catch

If the home is a second home or a rental, it does not get that exemption, so you are taxed on the full value, effectively close to double the primary-residence rate. That can be a meaningful number on a $600,000 house, and it is easy to forget when you are running the math on a vacation place. Build it into your budget from the start.

A few other closing basics

• Closing costs for buyers here typically run a couple percent of the price, give or take.
• Utah has no state real estate transfer tax, which is a nice break compared to some states.
• Deals close through a title or escrow company, with no attorney required.

None of this is tax advice, so confirm the specifics with the county and your own accountant, but knowing the primary-versus-second-home difference up front keeps the tax bill from being an unwelcome surprise.