This property tax calculator estimates the annual property tax for the years to come by considering the property’s assessed value, tax rate and an annual increase of them which should be assumed by you. There is in depth information on this topic, below the form.

Assessed property value:*
Assumed annual increase on property value:
Annual tax rate:*
Assumed annual increase on tax rate:
Starting year:*
No. of years to estimate tax:*

What is property tax?

Within United States most local governments compel owner to pay a tax on the property owned either a real estate or a personal one. This ensures a stable income source for the local authorities. In most of the cases the tax level relates to the current market value of the property, thus its level is estimated by the local officials and may be disputed by the owners of the property. In some other cases the owner declares a value to the taxing authority and then the institution either accepts it or decides to start its own assessment.

Usually the tax is expressed either as a percentage applied to the assessed value of the property subject to tax or as an amount of money to pay in tax per thousand dollars of assessed value (often called as “millage”).

Which is the level of the property tax?

As explained above its level varies from one state to another. However based on a quick research, as per 2014/2015 homeowners paid an average of about $3,000 - $3,200 in property taxes, but it can significantly vary depending on where you live. As per 2014/2015:

  • some of the highest levels registered were between 3.5 – 4% as a percent of home value;
  • while some of the lowest levels registered were between 0.2 – 0.5% as a percent of home value.

What properties are subject to tax?

Most of the property types are subject to tax, thus the list includes:

  • Homes
  • Farms
  • Business premises
  • Lands
  • Buildings and fixtures that cannot be separated from the property without damage.
  • Any other similar property. For instance in some jurisdictions are subject to tax even specific properties that are used in a business.

Factors that have an impact on the level of the property tax

First aspect to note is that the tax rates vary by the jurisdiction’s policy, as they are set up by the governing official body.

Second aspect to note is that usually the level of the property tax depends on factors such as:

  • Classification of the property, in other words by its type which can be either residential, industrial, commercial, vacant or abandoned real property.
  • The current property’s value on the market.
  • The occupancy level of the property. For instance in some states the occupancy is incentivized, thus the more occupied is a property the lower the property tax rate will be.

What happens if not paying the property tax?

While payment terms vary from one jurisdiction to another, in case an owner fails or refuse to pay it out, then the taxing authority takes various measures to collect it such as: sale or seizure of the property.

How does this property tax calculator work?

This financial tool may be useful when trying to forecast your property tax for the years to come by assuming an average annual increase on property’s market value and an increase on the tax rate level. Thus it requires you to specify the following variables:

  • Current market value of your property.
  • Assumed annual increase on property value as percentage.
  • Tax rate as per today.
  • Estimated annual increase on tax rate level as a percent.
  • Starting year of your calculation and the number of years you want to forecast.

The algorithm behind this property tax calculator applies the assumed increase in both relevant figure you input year per year and return a table similar to the ones exemplified below.

Example of a calculation

Let’s take an example on how to calculate future property tax value:

  • Assessed property value: $250,000.
  • Assumed annual increase on property value: 3%
  • Annual tax rate:  2.15%
  • Assumed annual increase on tax rate:  10% (please note that this percentage refers to the increase of the tax rate itself from one year to another)
  • Starting year: 2015
  • No. of years to estimate tax: 15

The results displayed are:

Tax yearAssessment valueAnnual tax rate (%)Annual property tax valueMonthly property tax value
2015 $250,000.00 2.15 $5,375.00 $447.92
2016 $257,500.00 2.37 $6,089.87 $507.49
2017 $265,225.00 2.60 $6,899.83 $574.99
2018 $273,181.75 2.86 $7,817.51 $651.46
2019 $281,377.20 3.15 $8,857.23 $738.10
2020 $289,818.52 3.46 $10,035.25 $836.27
2021 $298,513.07 3.81 $11,369.93 $947.49
2022 $307,468.47 4.19 $12,882.13 $1,073.51
2023 $316,692.52 4.61 $14,595.46 $1,216.29
2024 $326,193.30 5.07 $16,536.65 $1,378.05
2025 $335,979.09 5.58 $18,736.03 $1,561.34
2026 $346,058.47 6.13 $21,227.92 $1,768.99
2027 $356,440.22 6.75 $24,051.24 $2,004.27
2028 $367,133.43 7.42 $27,250.05 $2,270.84
2029 $378,147.43 8.16 $30,874.31 $2,572.86
Total tax paid $222,598.41

07 Feb, 2015