How are property taxes determined and calculated?

Property taxes represent a property owner’s portion of the local government’s budgeted spending for the previous year. Increases or decreases depend upon a local government’s fiscal management, the assessed valuation of a property and/or local tax rates, which are based on the budget proposals submitted by local government taxing entities that provide services to each community.

To calculate an individual’s property tax bill, the county official takes the tax rate multiplied by the assessed value after all deductions are subtracted and after all state credits (homestead and property tax replacement credits) are applied. Tax rates are determined by dividing the estimated amount of funds to be raised by the local unit of government by the net assessed value of all property in a county, minus the applicable deductions.

Show All Answers

1. How much property tax do I owe?
2. How do I file for the homestead credit or another deduction?
3. Where can I locate a form?
4. How are property taxes determined and calculated?
5. What are property tax deductions and how do I know if I qualify for one?
6. Why haven’t I received my tax bill?