How to Calculate Property Taxes

Some homeowners just pay their property taxes every year without giving any thought to how the taxes were calculated. Even though it is not mandatory for a homeowner to know this information, it is highly recommended that they at least have some idea.

How to Calculate Property Taxes

1. Determine what the assessed value of your property is, which should include the land and any buildings that are on the land. This amount will reflect an estimated value of your property. This is not going to be how much you actually paid for the property, but the estimated value determined by an official tax assessor. These numbers are used to help calculate the actual property taxes.


2. Find out what the estimated property tax rates are for the upcoming year. There are some government agency websites where you can go to retrieve this type of information.


3. Check to see if you qualify for any property tax exemptions. If so, they should be deducted from the total accessed value of your property. If you are unsure if you qualify for any exemptions you can contact you local tax office for guidance.


4. Multiple the accessed value of your home by the estimated property tax rate for the upcoming year.


5. Add the amount of each taxing district to come up with the total estimated amount you will be responsible for paying for property taxes. Remember that this is only an estimate and the actually amount may be slightly more or less.