Posted on: 21st Dec, 2011 02:54 am
Is there something called mortgage tax similar to that of property tax? Kindly explain this to me…
Welcome Glenna,
As far as I know, there is no tax on a mortgage. It is not a taxable item because it isn't an income to you nor is it a physical personal property, which is under most state law subject to taxation. A mortgage itself isn't an "asset" to be taxed. It is essentially a negative asset because it is merely a liability to you (debt).
As far as I know, there is no tax on a mortgage. It is not a taxable item because it isn't an income to you nor is it a physical personal property, which is under most state law subject to taxation. A mortgage itself isn't an "asset" to be taxed. It is essentially a negative asset because it is merely a liability to you (debt).
It was me above... just forgot to log in!!
Some States have a Mortgage Tax, but not all of them. We don't have it here in California, but Florida does. Consumers pay that tax when they get a new mortgage.
There is a mortgage recording tax in New York. Taxes are charged for mortgages recorded on property in the 5 boroughs.