Property Tax Calculations

Most states tax homeowners based upon assessed value, not the market value of a home. The assessed value can be a percentage of total estimated value. The percentage value is called an "assessment rate," and the resulting value is called the "assessed value or taxable value or grand list value." The intent of having the ability to change the residential assessment rate is to maintain the tax burden balance between residential properties and all other property types.

Your property taxes are calculated by multiplying the mill levy or tax rate by the assessed or taxable value of your property.

EXAMPLE FOR RESIDENTIAL PROPERTY:

The actual value of Mr. Carson's home is $300,000. The Notice of Valuation shows the current assessment percentage is 7.96 percent.

Actual Value x Assessment Percentage = Assessed Value
$ 300,000 Actual Value x 7.96% Assessment Percentage = $ 23,880 Assessed Value

To determine the property tax, multiply the assessed value times the decimal equivalent of the total mill levy. A mill is equal to 1/1000 of a dollar. A tax rate is the mill levy expressed as a percentage. Thus 98.42 mills = 9.842 percent or .09842 as the decimal equivalent.

If Mr. Carson's assessed value is $23,880, his taxes will be:
Assessed Value x Mill Levy = Taxes
$ 23,880 Assessed Value x .09842 Mill Levy = $ 2,350.27 Taxes

EXAMPLE FOR VACANT LAND:

The actual value of Ms. Harper's vacant land parcel is $150,000, and the assessment percentage is 29 percent.

Actual Value x Assessment Percentage = Assessed Value
$ 150,000 Actual Value x 29% Assessment Percentage = $43,500 Assessed Value

To calculate the property tax for Ms. Green's land, multiply the assessed value times the decimal equivalent of the total mill levy. A mill is equal to 1/1000 of a dollar. A tax rate is the mill levy expressed as a percentage. Thus 98.42 mills = 9.842 percent or .09842 as the decimal equivalent.

If Ms. Harper's assessed value is $43,500, her taxes will be:
Assessed Value x Mill Levy = Taxes
$ 43,500 Assessed Value x .09842 Mill Levy = $ 4,281.27 Taxes