1. What is Property Tax?

Property tax is a levy on property that the owner is required to pay to the local government. The tax is usually based on the value of the owned property, including land and buildings.

2. How Property Tax is Calculated

The basic property tax formula is:

Where:

• Assessed Value — The dollar value assigned to a property for taxation purposes
• Tax Rate — The percentage (expressed as a decimal) at which the property is taxed

Explanation: The assessed value is typically a percentage of the property's market value, and the tax rate is set by local authorities.

3. Importance of Property Tax

Details: Property taxes are a major source of revenue for local governments, funding schools, roads, police and fire departments, and other municipal services.

4. Using the Calculator

Tips: Enter the assessed value of your property in dollars and the tax rate as a decimal (e.g., 0.015 for 1.5%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is assessed value determined?
A: Assessed value is typically determined by a local tax assessor and may be a percentage of the property's market value.

Q2: Can property tax rates vary?
A: Yes, rates vary by location and can change annually based on local government budgets.

Q3: Are there property tax exemptions?
A: Many jurisdictions offer exemptions for seniors, veterans, or primary residences. Check with your local tax authority.

Q4: How often is property tax paid?
A: Typically annually, though some areas allow or require semi-annual or quarterly payments.

Q5: What if I disagree with my assessment?
A: Most jurisdictions have an appeals process where you can challenge your property's assessed value.