How Do We Calculate Income Tax

Estimate your annual and monthly real estate tax obligations

Tax Summary

Assessed Value:

$0

Taxable Value:

$0

Total Annual Property Tax:

$0

Estimated Monthly Payment:

$0

function calculatePropertyTax() { var marketValue = parseFloat(document.getElementById('marketValue').value); var assessmentRatio = parseFloat(document.getElementById('assessmentRatio').value); var taxRate = parseFloat(document.getElementById('taxRate').value); var exemptions = parseFloat(document.getElementById('exemptions').value); if (isNaN(marketValue) || isNaN(assessmentRatio) || isNaN(taxRate)) { alert("Please enter valid numbers for Market Value, Assessment Ratio, and Tax Rate."); return; } if (isNaN(exemptions)) { exemptions = 0; } // 1. Calculate Assessed Value var assessedValue = marketValue * (assessmentRatio / 100); // 2. Subtract Exemptions for Taxable Value var taxableValue = assessedValue – exemptions; if (taxableValue < 0) { taxableValue = 0; } // 3. Calculate Annual Tax (Rate is entered as percentage) var annualTax = taxableValue * (taxRate / 100); var monthlyTax = annualTax / 12; // Display Results document.getElementById('dispAssessed').innerText = '$' + assessedValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('dispTaxable').innerText = '$' + taxableValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('dispAnnual').innerText = '$' + annualTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('dispMonthly').innerText = '$' + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('taxResult').style.display = 'block'; }

How to Use the Property Tax Calculator

Property taxes are one of the most significant ongoing costs of homeownership. Local governments use these funds to pay for essential services like schools, police, fire departments, and road maintenance. Use this calculator to estimate your tax burden based on current local rates.

Understanding the Formula

The calculation for property tax follows a specific sequence of steps:

• Market Value: The estimated price your home would sell for in the current market.
• Assessed Value: Local tax assessors often multiply the market value by an Assessment Ratio (usually between 10% and 100%).
• Exemptions: Deductions applied for homestead status, age, disability, or military service. These reduce the taxable portion of your home's value.
• Tax Rate: Often expressed as a percentage or a "mill rate" ($1 per $1,000 of value).

Realistic Calculation Example:

Suppose you own a home valued at $400,000. Your county has an 80% assessment ratio, a tax rate of 1.5%, and you qualify for a $25,000 homestead exemption.

1. Assessed Value: $400,000 × 0.80 = $320,000
2. Taxable Value: $320,000 – $25,000 = $295,000
3. Annual Tax: $295,000 × 0.015 = $4,425.00
4. Monthly Cost: $4,425 / 12 = $368.75

Tips for Lowering Your Property Tax Bill

If your estimated tax seems higher than expected, consider these strategies:

1. File for Exemptions: Ensure you have applied for every exemption you are eligible for, such as the Primary Residence/Homestead exemption.
2. Review Your Assessment: If the local assessor lists your market value higher than what similar homes in your area are selling for, you can file an appeal.
3. Check for Errors: Review your property record card for incorrect data (e.g., wrong square footage, number of bathrooms, or lot size).

Mill Rate vs. Percentage

Many jurisdictions use "Mills" to define tax rates. One mill represents one-tenth of a cent ($0.001). To convert a Mill Rate to a percentage for this calculator, divide the mill rate by 10. For example, a mill rate of 15 mills is equivalent to a 1.5% tax rate.