How Property Taxes Are Calculated

Property taxes are levied by cities, counties, and school districts on the properties within their boundaries and these organizations use them to provide services. All these levies are added together to calculate property taxes and work out the total tax rate, known as a mill rate, for a region. This rate is then multiplied by the assessed value of a property so people with more valuable properties pay more. Millions of homeowners payproperty taxes every year.Key TakeawaysCities, counties, and school districts in a region have the power to levy taxes against the properties within their boundaries. Property tax rates for each jurisdiction are calculated separately then all the levies are added together to determine the total tax rate, called a mill rate, for an entire region.Property taxes are calculated by taking the mill rate and multiplying it by the assessed value of your property.The market value of your property is assessed by using one or a combination of three methods: performin...