What are Property Taxes?
By RealtyCrunch Inc•April, 26th 2020
Property tax is a tax on a real estate used to fund local government initiatives, often schools.
How are property taxes determined?
Local governments typically look at two things while assessing the property taxes.
- Where is the property?
- How much is it worth?
How is property tax calculated?
Property tax = value of the property X tax rate
Value of the property
- Appraisal of the property
The tax rate
- Often based on the “millage rate” term, where one mill is equal to one-thousandth of a dollar.
- (I.E.. if the local property tax rate on homes is 20 mills, homeowners pay $20 in tax for every $1,000 in assessed home value. Accordingly, a house with a $200,000 assessed value would be taxed $4,000)