Calculating Your Annual Property Tax
To estimate your annual property tax:
Multiply the taxable value of your property X the current tax rate for your property's tax class.
Property tax rates change each year, as well as the value of exemptions and abatements. The actual taxes you pay in July might be different.
|Calculating Your Taxes||Example - A Class 1 Property||Your Property|
|1. Enter the Taxable Value from the Notice|| $16,000 || |
2. Enter the Tax Rate for your Tax Class
| X .18569 (18.569%)|| X|
|3. Multiply Taxable Value by the Tax Rate|| $2,971.04 || |
|Tax rates change every year. The number above is only an estimate of the tax you will owe if the tax rate remains the same.|
|Veteran's Exemption: Homeowners with a Veteransʼ Exemption are required to pay a tax to support public schools. For example, if your Veterans’ Exemption is $2,500, you pay the following tax to support schools:|
Calculating the Taxable Value
A property’s annual property tax bill is calculated by multiplying the taxable value with the tax rate. Read More
Step 1: Estimate the property’s market value. Finance determines the market value differently depending on they type of property you own.
Read more about how Finance determines your market value.
Step 2: Multiply the estimated market value by the “level of assessment,” which is 6% (Tax Class 1) or 45% (all other classes).
For Class 1 Properties and Class 2 Properties with 10 Units or Less
|Class 1: ||Assessed Value (AV) cannot increase more than 6 percent each year or more than 20 percent in five years.|
|Class 2:||Assessed Value (AV) cannot increase more than 8 percent each year or more than 30 percent in five years.|
Step 2a: Apply state law rules which limit how much the Assessed Value (AV) can increase from one year to the next.
The lower amount between Step 2 and Step 2A is your assessed value.
The limitations on assessment increases outlined here explain why many assessments take several years to catch up with market value growth or decline.
|Actual Assessed Value|
Assessed Value if No Limitations
For Class 2 Properties with 11 Units or More and Class 4 Properties
Step 2B: AV changes are phased in over five years.
Step 3: If the property has exemptions (for example STAR, SCHE, or J-51), subtract the total exempt value. The resulting amount is the taxable value. The exempt value does not include abatements, which are subtracted from the annual property tax amount. Learn about Exemptions and Abatements.
Example for a Class One Property, worth $450,000, with an Enhanced STAR Exemption:
| Market Value || |
| Class 1 Assessment Ratio|| X|
| Assessed Value || |
| Enhanced STAR Exemption Value|| -|
| Taxable Value || |
| Sample Class 1 Tax Rate || X|
|Annual Tax in Dollars for above Example:|