Paying taxes for mobile homes can be confusing. Are they real estate or just personal property? Do you pay property taxes on mobile homes?
Whether you own the land the mobile home is on can make a huge difference in the taxes you pay. And even if you don't own the land, you're not necessarily free from paying taxes on the property.
Do you have to pay property taxes on mobile homes?
There are two types of property taxes when it comes to mobile homes: real estate (or real property) taxes and personal property taxes. As real property taxes apply to all property owners, all homeowners pay these taxes, whether they own a single-family home, townhouse, or condo.
In regards to personal property taxes, personal property is defined as movable property that isn’t attached to a home or building of any kind. Mobile homes are a perfect example of personal property, because they typically aren’t attached to a building and can be moved around easily.
You may have to pay real property taxes on mobile homes
States have different rules on personal and real property taxes, but in most cases, mobile homes are considered personal property if you only own the mobile home. If you only own the land the mobile home is on, or you own both the home and the land, you would pay real estate taxes instead.
Tenants who are renting a mobile home may not have to pay either directly. However, it's worth noting that mobile home landlords may include personal property taxes in the rental fee, and if you’re renting a mobile home and the landlord fails to pay property taxes on that home, it could lead to a tax sale of the home. To avoid that, it's good to check with tax authorities that the owner pays taxes.
How to determine how much property tax you have to pay on a mobile home
If you own the land the mobile home is on, in most cases, the real property tax is already included in the mortgage loan payments. And if you only own the mobile property, it’s best to check with state authorities to see if your mobile home constitutes real or personal property.
A property tax consultant can help assess the taxes owed on these types of properties as well. In some cases, even renters have to pay taxes on the mobile home. Local tax offices can also let you know if you qualify for any tax exemptions, which could drastically reduce your tax bill.