Property taxes are applicable on Land, immovable manmade objects i.e., buildings, and personal movable manmade objects. Property tax is often given in percentage. It is also known as premille or millage tax. Before paying the taxes for property the owner of the property should know how to calculate property tax. The payer should have a good idea of how much he/she needs to pay as property tax.
Given below is the process of how to calculate property tax for the benefit of the payers;
- The property owner should find out the assessed value of the property including the land and the building. The amount to be paid reflects the total estimated value of the property as determined by the official tax assessor. The estimated values for land should be added.
- The individual who is wondering how to calculate property tax for paying should research the estimated rates for the coming years. It will help to use the previous tax rates as a guide. Local governments sometimes provide access about property tax rates, average values of home.
- The property tax exemptions should be deducted that qualify from the total assessed value of the property. For this the payer should contact the local tax office to verify the deductions he/she is eligible to apply.
- People eligible for exemption of property tax are disabled, widows and senior citizens above 65 years.
- While going through how to calculate property tax the payer should multiply the new amount for the assessed value of the property by the estimated property tax rate percentage. The amounts for each taxing districts should be added to calculate the total estimated amount required to pay.
- The payer should know that the calculated amount is just an estimate which may vary significantly from the actual payable amount of property taxes.