How are property taxes determined?

Property taxes are determined based on the property's assessed value. This assessed value is typically established by local government assessors, who evaluate the property and its characteristics, such as location, size, and improvements, to arrive at a value that reflects the market conditions and property characteristics. Once the assessed value is determined, tax rates set by local taxing authorities are applied to calculate the actual property tax owed by the property owner.

This approach ensures that property taxes are tied to the value of the property rather than arbitrary factors. It allows for a more equitable distribution of the tax burden based on the value of the real estate owned, in contrast to methods like using a percentage of the sale price, which may not accurately reflect the property's ongoing value as it can fluctuate after sale. Additionally, property tax assessments are influenced by local government policies and regulations, making the determination process applicable within specific local jurisdictions rather than being uniform or independent from them.