How do you calculate property taxes?

To calculate property taxes, you multiply the taxable value of the property by the authorized millage rate. The taxable value represents the assessed value adjusted by any exemptions or reductions that apply to the property. The authorized millage rate is the tax rate expressed in mills, where one mill corresponds to one-tenth of a cent or $1.00 for every $1,000 of taxable value.

Using this formula (taxable value x authorized millage rate) gives you the total property tax owed. For example, if a property has a taxable value of $100,000 and the millage rate is 20 mills (or 0.020), the calculation would be $100,000 x 0.020, resulting in an annual property tax of $2,000.

Other methods such as addition, subtraction, or division involving the taxable value and millage rate do not provide the correct means of determining property tax, which focuses specifically on the multiplication of these two variables.