How Do I Use The Property Tax Calculator?
Use the property tax calculator to estimate your annual property taxes and potential savings. Just enter your address. No personal information such as email address or phone number is required.
This property tax calculator will provide an estimate of your annual property taxes and calculate how much you can save with the Property Tax Protection Program™. Just enter your property address and receive the response immediately. No personal information is required. No one will call you. The property tax calculator and fairness checker are both available free.
How Much Are My Property Taxes?
This is a question we hear frequently. Use the property tax calculator above to review: 1) the estimated amount of your property taxes and 2) the amount of excess property taxes you are paying.
What Are Property Taxes?
Property taxes are a fee the local government charges owners of real estate. Unlike a mortgage, property taxes are never paid fully. The government wants more of your money every year, year after year. The more real estate you own, the more property taxes you pay. The higher the value of your home, the more property taxes you pay. Use the calculator to estimate your annual property taxes.
How Do I Calculate What I Owe In Property Taxes?
Calculating is complicated and varies within a state and even varies within a metropolitan area. Many states have different property tax rate calculations for commercial and residential. The assessment ratio for property taxes is the portion of the market value to which the tax rate is applied. In Colorado, the assessment ratio for houses is 8.5%. A home worth $200,000 in Colorado is assessed based on a value of $17,000 (=$200,000 x 0.085). The Colorado assessment ratio is 29% for commercial and 85% for oil and gas leaseholds. The assessment rates in Cook County Illinois (home to Chicago) vary from assessment rates in other parts of Illinois. Tax policy also varies in New York for New York City versus the balance of the state.
Calculating Property Taxes
Property taxes = Market Value of real estate x assessment ratio x tax rate.
The above simplifies the tax rate calculation by not including exemptions. Many states have an exemption for homesteads (primary residence owned and occupied). A more precise summary of property tax calculations is:
Property taxes = ((Market value of real estate x assessment rate) – exemption) x tax rate.
How Much Is Too Much?
Paying property taxes above the minimum required by law is too much. You can spend your money better than the government, right? (No one has ever answered this question no.) You have two primary tools to reduce property taxes:
- Homestead exemptions for your house, and
- Property tax appeals.
Property taxes are used to fund cities, counties, schools, and special districts. They are a large source of revenue for the local government. But you don’t have to pay more than your share. Research homestead exemptions in your area and appeal your property taxes regularly. You should appeal your property taxes each time they are reassessed, and between reassessment, if your taxes are too high based on market value or fairness (if you are paying more than your neighbors).