1. What is Property Tax?

Property tax is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction where the property is located. It is typically based on the value of the owned property, including land.

2. How Property Tax is Calculated

The calculator uses the property tax equation:

Where:

• \( Assessed\ Value \) — The dollar value assigned to a property for tax purposes
• \( Mill\ Rate \) — The amount of tax payable per dollar of the assessed value

Explanation: One mill equals one-tenth of one cent or $1 for every $1,000 of assessed value.

3. Understanding Mill Rates

Details: Mill rates vary by jurisdiction and are set by local governments. They represent the amount per $1,000 of assessed value that's used to calculate taxes owed.

4. Using the Calculator

Tips: Enter the assessed value of your property in USD and the mill rate for your area. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is assessed value determined?
A: Assessed value is typically a percentage of market value determined by local assessors.

Q2: Why do mill rates vary by location?
A: Mill rates depend on local budget needs and property values in each jurisdiction.

Q3: How often are property taxes paid?
A: Most jurisdictions require annual payments, though some allow semi-annual or quarterly payments.

Q4: Can I appeal my property tax assessment?
A: Yes, most jurisdictions have an appeals process if you believe your assessment is incorrect.

Q5: What's the difference between market value and assessed value?
A: Market value is what the property would sell for, while assessed value is used for tax calculations and is often lower.