How do property taxes work for multi-family homes?
By Bob Millaway, South Jersey Community Expert & REALTOR®
Multi-family homes such as duplexes, triplexes, and fourplexes are assessed and taxed based on the total property value, including all units. The tax calculation follows the same formula as single-family homes. However, because they generate rental income, owners can deduct property taxes as a business expense. Multi-family properties may be assessed at a higher value due to their income-generating potential.
Why It Matters
Property taxes directly affect your cash flow as a multi-family property owner. Understanding the tax treatment helps you evaluate investment returns accurately.
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