All About Mobile Home Property Taxes

Mobile Home Taxes Calculation
Understand what mobile home taxes you may owe, depending on where you live.

Who Pays Mobile Home Property Taxes?

Property taxes for a mobile home must be paid by the owner of the home. But are they paying personal property tax or real estate tax? If you own the home but not the land, you likely will pay personal property tax to the state motor vehicle department. However, some states, such as Michigan, require no annual tax for factory-built homes. Often, in lieu of annual taxes, the state will levy a tax at the time of the manufactured or mobile home purchase.

On the other hand, if you own the land the home is on as well as the home, you will pay your real estate tax bill. The bill should be paid to the local government where your home is located.

What’s the Difference Between Property and Real Property Taxes?

Mobile home taxes can be classified a couple of different ways depending on the land beneath the home. Real property, or real estate, is taxed at a rate determined by the taxing authority within the local government. The tax on the home and the property is paid together based on the assessed value of the property. With personal property tax only the assessed value of the home itself is considered for taxation.

Personal property tax can be levied on myriad items — including jewelry, art, furniture and other household goods. However, taxation on personal items is determined by the local taxation authority where you and your belongings reside.

Mobile Home Taxes Community Living
Lakeside Village in Greenville, Mich.

Taxes for a Mobile Home in a Community

If you live in a community and pay a monthly lot rent, the owner of the community makes tax payments. The estimated tax may be figured into your lot rent, too. So you may be paying the tax, but won’t have to worry about making the payment deadline.

However, some states allow homeowners who pay lot rent to claim those payments as a tax deduction on their annual tax returns. Check with you tax accountant or look up laws for your state pertaining to lot lease payments.

Some states assess a fee to park owners that is collected monthly at a set rate per homesite to help fund school districts and public libraries, for instance. Again in Michigan, the state fee is being studied for a possible increase.

When and How Do I Pay Mobile Home Taxes?

If you’re paying personal property tax on just the home, you likely will pay taxes yearly. It differs from state to state. But most motor vehicle offices require payment on the anniversary for when the home sale was recorded. Or on the birth date of the homeowner. If you pay real property taxes, for the home and the land, the payment likely comes due to the local government at the beginning of each new year, or in summer and winter depending on where you live. However, if you have a mortgage on the land and home, there may be an escrow account set up by the lender for your mobile or manufactured home that gets fed a portion of the taxes when you make your monthly mortgage payment. In that case, your lender will make the payment for you from the escrow account.

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