Calculate Property Taxes

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Real property is taxed by an assessor in the county in which the property is located.

 

Calculating Property Taxes

Actual value

x

Assessment rate

=

Assessed value

x

Tax Rate

=

Taxes

Actual value is market value

A percentage dependent on the property classification

The value on which a property is taxed

Levies imposed by taxing districts, aka mill levy

Example

Your home’s market value is $500,000

Assessment rate is 8% (shown on the Notice of Valuation)

Your home’s assessed value is $40,000

Your mills are 98, or 9.8%, or .098

Taxes owed are $3,920

$500,000

x

.08

=

$40,000

x

.098

=

$3,920

 

Calculating Reminders

The actual value of property is not the taxable value. Rather, the taxable value is a percentage of the actual value. The percentage is called an “assessment rate,” and the resulting value is called the “assessed value.” 

The assessment rate is 29% for non-residential property. The residential assessment rate is established by the legislature every odd numbered year.

The ability to change the residential assessment rate allows the tax burden to be balanced between residential properties and other property types.

The tax rate, also known as the mill levy, can include levies from a variety of taxing districts, such as schools, counties, city, and special districts. One mill is equal to $1 of property tax for every $1,000 of assessed value.