Meridian is one of the cities located in Ada County in the state of Idaho. The city is the second largest across the state with an estimated population of 106,604 people.
In total, over 81% of the city’s population is classified as married, while 54% have kids. The median price of homes currently listed in the city is $388,500, while the median home value is $325,300. The median rent price in Meridian is $1,600.
If you’re a recent homeowner in Meridian or if you’re looking to buy a home in the city, odds are you will be interested in property tax rates across the city. But first, you have to understand exactly how the state of Idaho taxes works.
Idaho Property Taxes
Taxes on properties in Idaho are fairly low compared to the rest of the entire United States. The average homeowner in the state pays $1,322 annually in property taxes – which is almost $800 lower than the national average.
One of the key factors that trigger such a relatively low property taxes in the state is the homeowners’ exception rule. This rule exempts half the value (fifty percent) of owner-occupied primary homes from property taxes and up to a limit of $100,000.
The state allows homeowners to pay their property taxes in two installments. The first installment is due on the 20th of every December. The second installment is due on the 20th of June.
Nonetheless, for those who are interested in buying properties as an investment in order to have tenants living in the said properties, they (such property owners) are excluded from the homeowners’ exemption.
How Idaho Property Taxes Are Calculated
Property taxes in Idaho are the major source of funding for several local services like roads, parks, schools and even law enforcement. These taxes are also used for long-term investments like capital projects and infrastructure development.
Taxes in Idaho depends on the total market value of property which is arrived at each year by an assessor in each county.
To determine a property’s market value, the assessor relies on sales price information for recently sold properties that could be compared in terms of conditions, size, location and other key features.
As soon as the assessed value has been established, exemptions are applied. The biggest exemption in the state is homeowners’ exemption. As mentioned earlier, this exemption can be claimed on owner-occupied primary residence.
The exemption equals 50% of the property’s value and acre of land. As of 2019, this exemption is capped at $100,000. However, if you have properties with tenants living in them, you’re excluded from the homeowners’ exemption.
For example, if you’re a homeowner who lives in his or her home that is worth $180,000, your property’s assessed value is $180,000. As a result, your homeowners’ exemption will be $90,000 (50% of the value of the home).
This means your tax rate will be applied to the total value of the $90,000. The statewide average urban tax rate is 1.438%, while the rural rate is 0.951%.
Local governments in Idaho are permitted to levy taxes at several different levels. As a result, tax rates aren’t the same between counties, cities, school districts, and other tax districts.
Typically, tax rates within cities are above the ones in rural areas. Idaho’s average urban tax rate is currently 1.438% while the rural rate is 0.951%. The two rates are applicable to taxable value and not market value.
How Idaho Property Taxes Are Calculated
If you’re planning to move to Meridian, or you’re looking to buy a property anytime soon, what exactly should you expect as your property taxes?
As mentioned earlier, Meridian is located in Ada County in the state of Idaho. The county is home to 435,000 people. Meridian has an estimated population of 106,604 people.
The median home value in Ada County is $219,900. The county’s median annual property tax rate is $1,659, while the average effective property tax rate is 0.75% – ranked as the 12th highest across the state of Idaho.