Real Estate Tax Rates

In determining economic impact of housing on local economies, evaluating affordability of housing and cost of living in general, and making decisions about relocating in places poles apart, real state taxes is one to be taken in consideration. Real state tax is an assessment made in proportion to the indicated monetary value of a real estate or property during an appraisal performed by taxing authority known to be the tax assessor.

In United States, for example, the assessment is comprised of two components-the building value and the land value. In general, to calculate a certain property tax, the authority will multiply the assessed value of the property by the mill rate and then divide by 1,000. Let’s take into consideration a property with an assessed value of US$ 400,000 located in a municipality with a mill rate of 10 mills. This would give you a property tax bill of US$ 4,000.00 per year.

From a survey, it was corroborated that what greatly affects the amount of taxes imposed on real estate taxes collected from home is the scope to which state and local government rely on property taxes. Regarding property tax rates across American states, Louisiana has the lowest real estate tax rates in the nation, $1.72 per $1,000 of home value and Wisconsin and Texas are the two states classified to have the highest effective rates that exceed $18 per $1,000 of property value.