How to Estimate Property Taxes

If you do not have an escrow account set up with your mortgage company, then you'll need to budget and pay for your taxes at the end of each year. In order to estimate your property taxes, you'll need to gather a few details and understand a few key concepts.

Instructions

1. Understand how the value of your home is determined for taxing purposes. Your property has a taxable value that is determined by analyzing sales of homes and the cost to reproduce the property. Many county property appraisers use software programs to help assist in determining this amount.

2. Search public records online by state and county under real estate. Many counties allow access to property tax records with details on tax rates, home value and your annual property tax estimate.

3. Know how property tax rates are figured. A budget is determined by what services are needed in the area. This budget is divided by the total taxable value of property with the taxing district to come up with the property tax rate.

4. Do simple math. Once you determine your assessed home value, exemption amounts and your property tax rate, you can estimate your taxes. Subtract any exemption amounts from your home value and multiply that by your property tax rate.

Tips & Warnings

• Property tax rates are often expressed in millage rates that are stated in terms of tenths of cents in tax per dollar of your property value.

• Some examples of exemptions include homestead, widow or widower, disability, blind person or those over 65 years of age. These amounts are provided by your taxing office.