Tax
Annual property tax
Assessed value less exemptions, multiplied by the local rate.
The Formula
Tax = (market value x assessment ratio - exemptions) x tax rate
Assessed value less exemptions, multiplied by the local rate.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| V | Market value | currency | Value of the home. |
| a | Assessment ratio | percent | Share of value that is assessed. |
| E | Exemptions | currency | Amounts subtracted before taxing. |
| r | Tax rate | percent | Local rate on assessed value. |
What Each Symbol Means
Vcurrency
Market value
Value of the home.
apercent
Assessment ratio
Share of value that is assessed.
Ecurrency
Exemptions
Amounts subtracted before taxing.
rpercent
Tax rate
Local rate on assessed value.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate property tax page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Property Tax, filed under Finance. Every number the guide produces comes from substituting into this one line.