A person's or company's property tax is assessed by using the formula:

 

Property Tax	=	Assessed Value x Mill Rate
		1000

where:

Assessed Value is the value of the property (in dollars)

Mill Rate is the government set tax rate (a decimal)

 

 

Examples:

 

1. The residential mill rate for a town is 34.0725. Calculate the annual property tax for the Smith's property with an assessed value of $125 500.

 

a) Set up Equation

Property Tax	=	Assessed Value x Mill Rate
		1000

b) Substitute for given values

Property Tax	=	$ 125 500 x 34.0725
		1000

c) Solve

 

Property Tax = $4276.10

 

The property tax for the Smith's home will be $4276.10

 

 

2. The mill rate for business (commercial) property in town is 45.0009. Calculate the annual property tax of a hotel if it is assessed to be worth $2 400 000.

 

a) Set up Equation

Property Tax	=	Assessed Value x Mill Rate
		1000

b) Substitute for given values

Property Tax	=	$ 2 400 000 x 45.0009
		1000

c) Solve

 

Property Tax = $108 002.16

 

 

The property tax for the hotel will be $108 002.16

 

 

 

Related Sites:

• The Canadian Poperty Tax Association

 

 

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