Tax
Effective rate
The true rate paid on the full market price.
The Formula
Effective rate = annual tax / market value x 100
The true rate paid on the full market price.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| T | Annual tax | currency | The annual bill. |
| V | Market value | currency | Value of the home. |
What Each Symbol Means
Tcurrency
Annual tax
The annual bill.
Vcurrency
Market value
Value of the home.
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.