Financing & Legal · Taxes

Tiny Home Taxes — What Owners Actually Pay

2026 · 10 min read · Updated August 2026
Tiny home property taxes are widely misunderstood. Here's how they actually work by structure type.

In This Guide

  1. How Assessment Works
  2. THOW Taxes
  3. Foundation Taxes
  4. Typical Bills

How Tiny Homes Are Assessed

Structure TypeClassificationTax Treatment
THOW (registered as RV)Personal propertyVehicle registration only
Foundation build (with CO)Real propertyStandard property tax
ADU on existing lotReal propertyIncreases parcel assessed value

THOW Tax Treatment

A THOW registered as an RV pays vehicle registration fees — typically $100–$500/year. Significantly less than property tax on equivalent real estate.

Foundation Home Taxes

Assessed like any other home — typically 75–100% of market value at your county's millage rate. A $60,000 tiny home at 1.2% effective rate = $720/year.

Key insight: THOWs have a major tax advantage. If minimizing ongoing costs is a priority, THOW classification is worth considering.