---
title: "Alternate Minimum Property Tax (B1124-010)"
description: "Alternate Minimum Property Tax"
url: https://homes-support.padzilly.com/en/articles/35-alternate-minimum-property-tax-b1124-010
collection: "Using Padzilly"
updated: 2025-07-25
language: en
alternates: [es]
---

# Alternate Minimum Property Tax (B1124-010)

Alternate Minimum Property Tax

### **Understanding the Alternate Minimum Property Tax in Padzilly**

In some cases, the actual property taxes on a home may not reflect what a new buyer will realistically pay. This can happen for a variety of reasons, including new construction, properties with special exemptions (such as those for seniors or veterans), or properties that have been assessed at a lower tax rate temporarily. For example, if a home was owned by someone with a tax exemption, the current property taxes may be far lower than what a new buyer can expect to pay.

To provide a more accurate estimate for qualifying purposes, Padzilly allows loan officers to set an alternate minimum property tax rate when the existing taxes fall below a certain threshold. This ensures that buyers are qualified using a more realistic estimate of their potential property tax obligations.

### **How It Works:**

**1\. Low Tax Threshold**: The loan officer sets a threshold for property taxes, typically as a percentage of the list price. If the actual property taxes are below this threshold, the alternate tax rate is applied.

Example: The loan officer sets a threshold of 0.30% of the list price.

**2\. Alternate Minimum Tax**: When the actual taxes fall below the threshold, the system applies an alternate minimum tax rate, typically more in line with market averages, to provide a realistic estimate of taxes for qualifying purposes.

Example: If the actual taxes are below 0.30%, the system applies an alternate rate of 1% of the list price for qualification.

This feature ensures that buyers are evaluated on a more realistic basis, protecting against potential surprises down the road when property taxes increase to more standard levels.

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For further details, please contact your loan officer or consult with local property tax authorities to get a clearer understanding of potential tax rates for your future home.