What are property taxes based on?

Property taxes are based on the assessed value of the property. The assessed value is determined by local tax assessors who evaluate the property to determine how much it is worth in relation to the market and local tax laws. This value reflects property characteristics, neighborhood conditions, and comparable property sales, allowing for a standardized measure upon which to calculate taxes owed.

While current market demand, sale price, and location may influence the assessed value, they are not direct measures of property tax calculations. Instead, property taxes are specifically calculated using the assessed value multiplied by the local tax rate. This structured approach ensures that property taxes are fairly distributed based on the value of properties within a municipality or jurisdiction.