Property Tax Calculator

A property tax calculator is an online tool that helps you figure out how much property tax you'll have to pay based on its capital value. This Calculator may also be very useful in calculating the tax payable on outstanding bills once you provide the inputs. Due to ease of access this Online property tax calculator is quite convenient to use.

Assessed Value:$
Taxe rate:%
Starting Tax Year:
Annual Increase:%
Number Of Years:

Property Tax Calculator Online: The property tax calculations which could take a long time using pen and paper can be done by a calculator in a few minutes. The property tax calculator system explains tax assessment based on the ward, zone, occupancy status, property category, year of construction, etc. It is a much more transparent, flexible, and convenient way to calculate the property tax.

Calculating taxes by yourself using a property tax calculator ensures that your calculations are precise in terms of how much tax you owe. This way you can make sure you are not being overcharged. Let's move to the further sections and know-how to calculate property tax comprehensively with solved examples.

What is Property Tax? | How Property Tax Calculated?

Property tax is a direct tax imposed on property ownership. The property tax is the tax levied on all real estate, including buildings (residential or commercial). This tax is exacted by the governing authority of the jurisdiction in which the property is located. The tax is usually based on the value of the owned property, including land.

Property Tax Formula

The formula that is applied to calculate the property tax is as follows: 

Property tax = base value × built-up area × Age factor × type of building × category of use × floor factor.

How to Calculate the Property Tax?

Generally, there are 3 methods taken in use for the calculation of property tax:

1. Capital Value System: Capital Value System, most commonly known as CVS is used to calculate property tax as a percentage of the market value of the property. The required market value is usually confirmed by the government and it is based on the locality of the property.

The Capital Value System is followed in Mumbai. The formula used to derive the property tax through CVS is

Property tax = base value × built-up area × Age factor × type of building × category of use × floor factor.

In general, the ascertained value of the property fixed for a particular zone is multiplied by the carpet area of the house.

2. Unit Area Value System: The Unit Area Value System or UAS is another method of determining the property tax, in which the tax is levied on the per-unit price of the built-up area of the property. The price is fixed concerning the location, usage, and land price of the property and then it is multiplied with the built-up area of the property to determine the tax valuation.

In Kolkata, Patna, and Ahemdabad the property tax is calculated by fixing a price per unit value of the area. Following the Unit Area System the annual value of the property can be derived through the given formula:

Annual Value = Covered Area× Value of Unit Area×Age factor× Use Factor× Structure Factor× Occupancy Factor.

3. Annual Rental Value System: This method is also known as Ratable Value System (RVS), here the tax is calculated on the yearly rental value of the property. The value need not be the actual rent amount being collected. However, it is the rental valuation on the size, location, condition of the premises. The formulas for calculating the Monthly rental Value and Annual rental value are:

Monthly rental value = Plinth area× Basic rate per sq feet

Annual rental value= Monthly rental value ×12-10%

The RVS system is most commonly seen in Chennai and Delhi.

Let's understand the calculation of property tax in more detail with the help of an example. You can use the calculator quickly in each touch to make all your work as smooth as possible, visit arithmeticcalculator.com for enhancing your conceptualizing skills.

Example:

A local authority assessed a property's value of $750,000 and charged 2% tax on it. Also every year it increases assessed value by 4% (depending on the market). What will be the property tax? Also, forecast property tax.

Solution:

Consider a property with an initially assessed value of $750,000. Further, it is taxed 2% per year and the assessed value is certainly increased by 4% per year. The calculation for the property tax is explained with the help of the following table.

Year

Assessed Value

Tax Rate

Property Tax

1

750,000

2%

15,000

2

750,000 * 1.04 = 780,000

2%

15,600

3

780,000 * 1.04 = 811,200

2%

16,224

4

811,200 * 1.04 = 843,648

2%

16,872

Factors Considered While Property Tax Calculation

The factors that have to be taken into consideration while calculating Property Tax are explained below.

  • Assessed Value: Assessed value can be defined as the tax assessor's value of a property. For taxation purposes, a property is assessed for its monetary worth. The signified price is known as assessed value.
  • Tax Rate: The tax rate is referred to as the annual tax rate used for computing the taxes of the property.
  • Annual Increase: Annual Increase is the resulting percentage obtained when the assessed value is automatically increased and taxed on the increased value.
  • Starting Year: The starting year here refers to the year from where you wish to start to calculate.
  • Number of Years: The number of years is the total number of years you want to calculate property taxes.

There are numerous factors to consider, whether it be pricing or performance.

FAQs on Online Property Tax Calculator With Steps

1. What type of cost is property taxes?

Property taxes are taxes with a fixed cost only if there is an interest rate incorporated into the loan agreement.

2. How property taxes are calculated?

You can calculate property taxes using the mill levy and multiply the value by the assessed value (reasonable market value) of the property of the owner.

3. What are examples of property taxes?

For instance, if the local property tax rate on homes is 20 mills, homeowners pay $20 in tax for every $1,000 in assessed home value.