United States Property Tax Guide
Below is a guide to help investors determine property tax reassessments after purchasing a commercial asset, with our findings from all 50 states.
Introduction
This Tax Guide was made for the purpose of helping investors estimate property tax assessments after the purchase of a commercial property. In most cases, the taxable value of a property is assessed after a sale or every few years. This can lead to increased property taxes after the purchase of a property, which is a factor that sometimes is overlooked in pro forma projections.
Our team sampled the largest county and 2 other random counties in each state and have recorded below our research to show how taxes are assessed in each state for commercial property.
​
​
​
​
How It Works & Key Terms
All properties have an Assessed Value (often called Taxable Value). The assessed value is not the actual value of the property, rather a value determined by the city in order to calculate the annual property taxes owed by the property owner. The assessed value is determined using different methods in each state and sometimes each county. For example, some counties use 30% of the market value to determine the assessed value. Others use anywhere from 80-90% of the estimated market value.
Once you know the assessed value, you apply either a tax rate or a millage rate to that value and you get your estimated annual property taxes.
A tax rate is a percentage that is multiplied by the assessed value to achieve your annual property taxes.
For example, a property with an assessed value of $1,000,000 and an assessment rate of 50% will have an assessed value of $500,000. With a tax rate of 4%, your property taxes would be $20,000.
With a millage rate you typically take the assessed value and divide by 1,000 and then multiply by the millage rate (it is far less common, but sometimes you will divide by 100 instead of 1,000).
For example, a property with an assessed value of $1,000,000 and an assessment rate of 50% will have an assessed value of $500,000. If the millage rate is 60, you would divide the assessed value of $500,000 by 1,000 – then take $500 and multiply it by 60. Giving you annual property taxes of $30,000.
​
Cities use a variety of methods to determine the market value which they use to then find the assessed value. They may use the income approach (basing the value off of the properties estimated income and utilizing a cap rate on the estimated NOI), the sales comparable approach (using similar sales in the area to determine their estimate market value), or by using the actual purchase/sale price of a property that is recorded with the county. Not all states are disclosure states – meaning that purchase prices need to be disclosed upon a purchase – so counties must use the former two approaches in that case.
Alabama
Property Assessment Method: Millage rate
Re-Assessment Period: Annual Increases are common, re-assessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
Formula:
Market value x Assessment Ratio (20%) = Assessed Value/1000 * Millage Rate = Annual Property Taxes
​
​
​
Summary:
In Alabama, property taxes are typically re-assessed every year. Alabama tends to use 20% of market value in order to capture the assessed value. The assessed value is then multiplied by the millage rate to receive a taxable value
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The Millage Rate is 55 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $11,000 per year.
$1,000,000 *20%= $200,000
$200,000/1000 = $200 * 55 = $11,000
Alaska
Property Assessment Method: Millage rate
Re-Assessment Period: Annual increases are common, reassessment are done after property is sold
Taxable/Assessed Value Approach: Cost Approach = replacement cost + depreciation + land value = market value
Formula:
Market Value/ 1000 = Assessed Value x Millage rate = Annual Property Taxes
​
​
Summary:
In Alaska, property taxes are typically reassessed every year. Alaska tends to keep it simple and multiply full market value by the millage rate in order to capture the Taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The Millage Rate is 17.15 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $17,150 per year.
​
$1,000,000/ 1000 = $1,000
$1,000 x 17.15= $17,150
Arizona
Property Assessment Method: Millage rate
Re-Assessment Period: Annual increases are common, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income Approach
Formula:
Market Value x 18% (Assessment Ratio) = Assessed Value x Millage Rate/ $100 = Annual Property Taxes
​
​
Summary:
In Arizona, property taxes are typically reassessed every year. Arizona tends to keep it simple and multiply full market value by the an assessment ratio of 18% to get the assessed value. The assessed value is then multipled by a millage rate and the sum is divided by $100 in order to capture the Taxable value.
​
​
Example:
You are purchasing a property for $100,000. $100,000 LPV x 0.18 (assessment ratio) = $18,000 x $12.1222/$100 = $2182.00. A commercial property within the same district with an LPV of $500,000 would pay $10,910.00 annually in property tax.
​
$100,000 x 18% = $18,000
$1,000 x 17.15= $17,150
Arkansas
Property Assessment Method: Millage rate
Re-Assessment Period: Every 5 years, re-assessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market value x 20 percent = Assessed Value /1000 x Millage Rate = Annual Property Tax
​
​
Summary:
In Arkansas, property taxes are typically re-assessed every 5 years. Arkansas tends to keep it simple and multiply full market value by 20% times the millage rate in order to capture the taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The Millage Rate is 55 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $11,000 per year.
$1,000,000 x 20%= $200,000
$200,000/1000 = $200 x 55 = $11,000
California
Property Assessment Method: Tax rate
Re-Assessment Period: every year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value x 1.2%-1.5% = Annual Property Tax
​
​
Summary:
In California, property taxes are typically reassessed every year. California tends to keep it simple and multiply full market value by 1.2% - 1.5% in order to capture the taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.5% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $15,000 per year.
​
​
$1,000,000 *1.5% = $15,000
Colorado
Property Assessment Method: Millage rate
Re-Assessment Period: Every odd year, re-assessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market value x 6.8% - 7.15% = assessed value/ 1000 x millage rate = annual property taxes
​
Summary:
In Colorado, property taxes are typically reassessed every odd year. Colorado tends to keep it simple and multiply full market value by a range of 6.8% to 7.15% times the millage rate in order to capture the taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $1,000 annually. The millage rate is 81 in your city. You can estimate worst case scenario your taxes will increase from $1,000 up to $5,791.5 per year.
​
$1,000,000 x 7.15%= $71,500
$71,500/1000 = 71.5 x 81 = $5,791.5
Connecticut
Property Assessment Method: Tax rate
Re-Assessment Period: Every 5 years, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value x 70% = Assessed Value x Tax Rate = Annual Property Tax
​
​
Summary:
In Connecticut, property taxes are typically reassessed every 5 years. Connecticut tends to keep it simple and multiply full market value by 70% times the tax rate in order to capture the annual property taxes.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 2.698% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $18,886 per year.
$1,000,000 x 70% = $700,000
$700,000 x 2.698% = $18,886
Delaware:
Delaware is going through a complete remodel of their taxing and assessment criteria. They do not have any information to disclose at this time, but you may call the assessors office of the county that your property is located in to get a better understanding of your estimated tax assessments.
Florida
Property Assessment Method: Millage Rate
Re-Assessment Period: Every year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value/ 1000 x Millage Rate = Annual Property Tax
​
​
Summary:
In Florida, property taxes are typically reassessed every year. Florida tends to keep it simple and multiply full market value by a millage rate order to capture the taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 19 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $19,000 per year.
​
​
$1,000,000 /1000 = $1,000
$1000 x 19 = $19,000
Georgia
Property Assessment Method: Millage rate
Re-Assessment Period: Every 1-5 years, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market value x 40% = Assessed value/ 1000 x Millage Rate = Annual Property Taxes
Summary:
In Georgia, property taxes are typically reassessed every 1-5 years. Georgia tends to keep it simple and multiply full market value by 40% times the tax rate in order to capture the taxable value.
Example:
You are purchasing a property for $1,000,000. The current property taxes are $5,000 annually. The millage rate is 8.4 in your city. You can estimate worst case scenario your taxes will increase from $5,000 up to $8,400 per year.
​
$1,000,000 /1000 = $1,000
$1000 x 8.4 = $8,400
Hawaii
Property Assessment Method: Tax Rate
Re-Assessment Period: Every year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Market Value x Tax Rate = Annual Property Taxes
​
​
Summary:
In Hawaii property taxes are typically reassessed every year. Hawaii tends to keep it simple and multiply full market value by the millage rate in order to capture the taxable value.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $1,000 annually. The tax rate is .35% in your city. You can estimate worst case scenario your taxes will increase from $1,000 up to $3500 per year.
​
​
$1,000,000 x .0035 = $3500
Idaho
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
Formula:
Market value x Tax Rate = Annual Property Taxes
​
Summary:
In Idaho property taxes are typically reassessed every year. Idaho tends to keep it simple and multiply full market value by the tax rate in order to capture the taxable value.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $1,000 annually. The tax rate is .35% in your city. You can estimate worst case scenario your taxes will increase from $1,000 up to $3500 per year.
​
$1,000,000 x .0035 = $3500
Illinois
Property Assessment Method: Tax rate
Re-Assessment Period: Every quarter, reassessment are done after property is sold
Taxable/Assessed Value Approach: Cost approach
​
​
Formula:
(Market value x 50%) x Tax rate = Annual Property Taxes
​
​
Summary:
In Illinois, property taxes are typically re-assessed every quarter. Idaho tends to keep it simple and multiply full market value by 50% to get an assessed value. The assessed value is multiplied by a tax rate in order to capture the taxable value.
​
​
​
Indiana
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value x Tax Rate (generally 3%) = Annual Property Taxes
​
In Indiana, property taxes are typically reassessed every year. Indiana tends to keep it simple and multiply full market value by a tax rate of around 3% in order to capture the taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 3% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $30000 per year.
​
​
$1,000,000 x 3% = $30,000
​
​
​
Iowa
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value x Tax Rate (generally 3%) = Annual Property Taxes
​
In Indiana, property taxes are typically reassessed every year. Indiana tends to keep it simple and multiply full market value by a tax rate of around 3% in order to capture the taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 3% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $30000 per year.
​
​
$1,000,000 x 3% = $30,000
​
​
​
Kansas
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Cost Approach
​
​
Formula:
Market value x 11.5% = Assessed Value x Tax rate = Annual Property Taxes
​
Summary:
In Kansas property taxes are typically reassessed every year. Kansas tends to keep it simple and multiply full market value by 11.5 percent to get an assessed value. The Assessed value would be timed by a tax rate in order to capture the taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $1,000 annually. The tax rate is 3% in your city. You can estimate worst case scenario your taxes will increase from $1,000 up to $3450 per year.
​
​
$1,000,000 x 11.5% = $115,000
$115,000 x 3% = $3450
Kentucky
Property Assessment Method: Tax rate
Re-Assessment Period: Once every 4 years, reassessment after property is sold
Taxable/Assessed Value Approach: Cost, income, and sales comparison approach
​
​
Formula:
Market Value x Tax Rate = Annual property taxes
​
​
Summary:
In Kentucky property taxes are typically reassessed every 4 years, but aren't guaranteed. Kentucky tends to keep it simple and multiply full market value by a tax rate in order to capture the taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.09% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10.900 per year.
​
​
$1,000,000 x 1.09% = $10,900
Louisianna
Property Assessment Method: Tax rate
Re-Assessment Period: Every 4 years minimum, reassessment are done after property is sold
Taxable/Assessed Value Approach: Cost approach, sales comparison approach, & income approach
​
​
Formula:
Market Value x 11.5% x Tax rate = Annual Property Taxes
​
In Louisiana, property taxes are typically reassessed every 4 years. Louisiana tends to use 3 different approaches to calculate Market value. Louisiana tends to keep it simple and multiply full market value by a tax rate in order to capture the annual property taxes.
​
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $1,000 annually. The tax rate is 3% in your city. You can estimate worst case scenario your taxes will increase from $1,000 up to $3450 per year.
​
​
​
$1,000,000 x 11.5% = $115,000
$115,000 x 3% = $3450
Maine
Property Assessment Method: Millage rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Cost approach, sales comparison approach, & income approach
​
Formula:
Market Value/ 1000 = Assessed Value x Mill rate = Annual property taxes
​
​
Summary:
In Maine, property taxes are typically reassessed every year. Maine tends to use the cost approach, but some counties do use the income approach to find market value. Maine likes to keep it simple and multiply full market value by a mill rate in order to capture the annual property taxes.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is $20 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $20,000 per year.
​
​
$1,000,000 / 1000 = $1,000
$1,000 x $20 = $20,000
Maryland
Property Assessment Method: Tax Rate
Re-Assessment Period: Every 3 years, reassessment is done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Market Value x Tax rate = Annual property taxes
Summarty:
In Maryland, property taxes are typically reassessed every year. Maryland tends to use the income approach to find market value. Maryland likes to keep it simple and multiply full market value by a tax rate in order to capture the annual property taxes.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.09% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10.900 per year.
​
$1,000,000 x 1.09% = $10,900
Massachusetts
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, re-assessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
Formula:
Assessed Value/ 1000 x Tax rate = Annual Property Taxes
​
​
Summary:
In Massachusetts, property taxes are typically reassessed every year. Massachusetts tends to use the income approach to find market value. Massachusetts likes to keep it simple and divide full market value by a thousand and multiply by a tax rate in order to capture the annual property taxes.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is $20 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $20,000 per year.
​
​
$1,000,000 / 1000 = $1,000
$1,000 x $20 = $20,000
Michigan
Property Assessment Method: Millage rate
Re-Assessment Period: Annual increases common, re-assessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Purchase Price X 50% = Assessed Value
Assessed Value / 1,000 X Millage Rate = Estimated Annual Property Taxes
​
Summary:
In Michigan, property taxes typically will increase throughout your hold period annually at a nominal percent (3-5%) – this annual increase is usually capped. After a property is sold, the assessed value becomes un-capped and will increase to a maximum of 50% of the market value of your property. Since Michigan is a disclosure state, they will typically use your purchase price as the market value, set the assessed value up to 50% of that price, and then calculate the property taxes using the millage rate in your city/district.
It is important to note that the 50% assessed value ratio is a maximum. It could be anywhere from 30-50%. Using 50% would give you the most conservative approach.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $16,000 annually. The Millage Rate is 55 in your city. You can estimate worst case scenario your taxes will increase from $16,000 up to $27,500 per year.
$1,000,000 x 50% = $500,000 taxable value
$500,000 / 1,000 x 55 = $27,500 Annual Property Taxes
Minnesota
Property Assessment Method: Tax Rate
Re-Assessment Period: Every year on Jan 2nd, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach, cost approach, and sales comparison approach
​
​
Formula:
Market Value x Tax rate = Annual Property Taxes
​
Summary:
In Minnesota property taxes are typically reassessed every year on January 2nd. Minnesota tends to use all three approaches to find market value. Minnesota likes to keep it simple and multiply full market value by a tax rate in order to capture the annual property taxes.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.09% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10.900 per year.
​
​
$1,000,000 x 1.09% = $10,900
Mississippi
Property Assessment Method: Tax rate
Re-Assessment Period: every 4 year, re-assessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market value x 15% = Assessed Value/ 1000 x Millage rate = Annual property taxes
​
Summary:
In Mississippi property taxes are typically re-assessed every year. Mississippi tends to use the income approach to find market value. Mississippi likes to keep it simple and multiply full market value by 15% to get an assessed value. The assessed value is then followed by a millage rate to get a taxable value
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 92 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $13,800 per year.
​
​
$1,000,000 x 15% = $150,000
$150,000/ 1000 = $150
$150 x $92 = $13,800
Missouri
Property Assessment Method: Millage rate
Re-Assessment Period: Every 2 years, reassessment are done after property is sold
Taxable/Assessed Value Approach: Cost approach
​
​
Formula:
Market Value x 19% = Assessed Value/ 100 x Millage Rate = Annual Property Taxes
​
Summary:
In Missouri, property taxes are typically reassessed every 2 years. Missouri tends to use the income approach to find market value. Missouri likes to keep it simple and multiply full market value by 19% to get an assessed value. The assessed value is then divided by 100 followed by multiplying by a tax rate in order to get annual property taxes
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is $7 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $13,300 per year.
​
​
$1,000,000 x 19% = $190,000
$190,000/ 100 = $1900
$1900 x 7 = $13,300
Montana
Property Assessment Method: Millage rate
Re-Assessment Period: Every 2 years on the odd year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value x 1.35% = Assessed Value x Mill Levy Rate = Annual property taxes
​
Summary:
In Montana, property taxes are typically re-assessed every 2 years. Montana tends to use the income approach to find market value. Montana likes to keep it simple and multiply full market value by 1.35% to get an assessed value. The assessed value is then multiplied by a tax rate to get the annual property taxes
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is .98 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $13,230 per year.
​
​
$1,000,000 x 1.35% = $13,500
Nebraska
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Market value x Tax rate = Annual property taxes
Summary:
In Nebraska, property taxes are typically reassessed every year. Nebraska tends to use the income approach to find market value. Nebraska likes to keep it simple and multiply full market value by a tax rate to get an assessed value.
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.09% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10.900 per year.
​
$1,000,000 x 1.09% = $10,900
Nevada
Property Assessment Method: Tax rate.
Re-Assessment Period: Every year, reassessments are done after property is sold.
Taxable/Assessed Value Approach: Cost approach, divorce land and improvements and pull market land value + improvement value.
​
Formula:
Market Value x 35% = Assessed Value x Tax Rate = Annual property taxes
​
Summary:
In Nevada, property taxes are typically reassessed every year. Nevada tends to use the cost approach to find market value. Nevada likes to keep it simple and multiply full market value by 35% to get an assessed value. The assessed value is then multiplied by a tax rate to get a taxable value.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $4,000 annually. The tax rate is 2.3% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $8,050 per year.
​
​
$1,000,000 x 35% = $350,000
$350,000 x 2.3% = $8,050
New Hampshire
Property Assessment Method: Millage Rate
Re-Assessment Period: Every 5 years , reassessment are done after property is sold
Taxable/Assessed Value Approach: Sales comparisons, and income approach
​
Formula:
Assessment (96%-110% dependant on market value) x mil levy = annual property taxes
Summary:
In New Hampshire, property taxes are typically reassessed every 5 years. New Hampshire tends to use the sales comparison and income approach to find market value. New Hampshire likes to keep it simple and multiply full market value by a range of 96% to 110% to get an assessed value. The assessed value is then multiplied by a tax rate to get annual property taxes.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 6% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $60.000 per year.
​
$1,000,000 x 100% = $1,000,000
1,000,000 x 6%= $60000
New Jersey
Property Assessment Method: Tax Rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
Formula:
Market Value x 84.3% = Assessed value x Tax rate = Annual property taxes
In New Jersey, property taxes are typically reassessed every year. New Jersey tends to use the income approach to find market value. New Jersey likes to keep it simple and multiply full market value by 84.3% to get an assessed value. The assessed value is then multiplied by a tax rate to get annual property taxes.
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 2% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $16,860 per year.
$1,000,000 x 84.3% = $843,000
$843,000 x 2% = $16860
New Mexico
Property Assessment Method: Tax rate
Re-Assessment Period: Only on sale or changes to the property.
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Sale price / 3 x Tax Rate = Annual property taxes
​
In New Mexico, property taxes are typically reassessed only when changes are made to the property or on the sale of the property. New Mexico tends to use the income approach to find market value and divide the value by 3 to get an assessed value. The assessed value is then multiplied by a tax rate to get a taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 3% in your city. You can estimate worst case scenario your taxes will increase from $8,000 up to $10,000 per year.
​
$1,000,000 / 3 = $333,333
$333,333 x 3% = $10,000
New York
Property Assessment Method: Tax Rate
Re-Assessment Period: Every 3 years, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
(Income Approach x Equalization Rate = Assessment Value) x Tax Rate/ Per Thousand = Annual Property Taxes
​
Summary:
In New York, property taxes are typically reassessed every 3 years. New York tends to use the income approach to find market value and then times the market value by an equalization rate to get an assessed value. The assessed value is multiplied by a tax rate which is then divided per thousand to get annual property taxes.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 92 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $13,800 per year.
​
​
$1,000,000 x 90% = $900,000
$900,000/ 100 = $150
$150 x $92 = $13,800
North Carolina
Property Assessment Method: Tax rate
Re-Assessment Period: Every 5 years, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value /100 x Tax Rate = Annual Property Tax
​
Summary:
In North Carolina, property taxes are typically reassessed every 5 years. North Carolina tends to use the income approach to find market value and then divides the market value by 100 to get an assessed value. The assessed value is multiplied by a tax rate to get annual property taxes.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.2% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10,200 per year.
​
$1,000,000/ 100 = $10,000
$10,000 x 1.2 = $10,200
North Dakota
Property Assessment Method: Millage Rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Cost approach
​
​
Formula:
Market Value x 50% = Assessed Value x 10% x Mill Rate
​
In North Dakota, property taxes are typically reassessed every year. North Dakota tends to use the income approach to find market value and then times the market value by 50% to get an assessed value. The assessed value is multiplied by 10% which is then multiplied by a millage rate to get annual property taxes..
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is .33 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $16,500 per year.
​
​
$1,000,000 x 50% = $500,000
$500,000 x 10% = $50,000
$50,000 x .33 = $16,500
Ohio
Property Assessment Method: Millage rate
Re-Assessment Period: Every 3 years, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income and sale comparison approach
​
Formula:
Market Value x 35% = Assessed Value x Millage Rate = Annual Property Taxes
​
In Ohio, property taxes are typically reassessed every 3 years. Ohio tends to use the income and sales comparison approach to find market value. Ohio likes to keep it simple and multiply full market value by 35% to get an assessed value. The assessed value is then multiplied by a Millage rate to get annual property taxes..
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 92 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $32,200 per year.
​
$1,000,000 x 35% = $350,000
$350,000/ 1000 = $350
$350 x $92 = $32,200
Oklahoma
Property Assessment Method: Millage rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Income Approach x 11% = Assessed Value/ 1000 x Millage rate = Annual Property Tax
​
In Oklahoma, property taxes are typically reassessed every year. Oklahoma tends to use the income approach to find market value. Ohio likes to keep it simple and multiply full market value by 11% to get an assessed value. The assessed value is then multiplied by a millage rate to get a taxable value.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 92 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10,120 per year.
​
$1,000,000 x 11% = $110,000
$110,000/ 1000 = $110
$110 x $92 = $10,120
Oregon
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Market Value /$1000 x Tax Rate = Annual Property Taxes
​
​
Summary:
In Oregon property taxes are typically reassessed every year. Oregon tends to use the income approach to find market value. Market value is then divided by 1000 times the tax rate to get annual property taxes .
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 16in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $16,000 per year.
​
​
$1,000,000/ 1000 = $1000
$1000 x $16 = $16,000
Rhode Island
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach, cost approach, and sales comparison approach.
​
Formula:
Market Value/ 1000 x Millage Rate = Annual Property Taxes
​
Summary:
In Rhode Island, property taxes are typically reassessed every year. Rhode Island tends to use the income approach, sales comparison, and cost approach to find market value. Market value is then multiplied by a millage rate to get a taxable value.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 16in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $16,000 per year.
​
$1,000,000/ 1000 = $1000
$1000 x $16 = $16,000
South Carolina
Property Assessment Method: Tax rate
Re-Assessment Period: Every 5 years, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Market Value x 6% = Assessed Value/1000 x Millage Rate = Annual Property Taxes
​
​
Summary:
In South Carolina, property taxes are typically reassessed every 5 years. South Carolina tends to use the income approach to find Market value. Market value is then multiplied by 6% to get an assessed value. The assessed value is then multiplied by a millage rate to get a taxable value.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 300 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $18,000 per year.
$1,000,000 x 6% = $60,000
$60,000/ 1000 = $60
$60 x $300 = $18,000
South Dakota
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Cost approach
​
​
Formula:
-
“Each year we received our level of assessment county wide. This level of assessment determines how much of full market value each individual will pay in taxes. Let's say we are 100% market value on all properties. Then you will pay taxes on 85% of its full value. If we assess at 85% full market value then you will pay taxes on 100% of that value. The current factor rate is 93.90% so if you have a full value of $100,000 you pay taxes only on $93,900. Since you only pay taxes on a per 1,000 in value for levies you would then take 93900/1000 to get 93.9. You then take that 93.9 and multiply it by the non-owner occupied levy with is currently $19.653 (93.9 x 19.653 = $1,845.4167)” - Minnehaha County
​
​
Example:
An apartment Building Sold for $14,000,000 and our assessment on it is $13,000,000 if you wanted to estimate the taxes you can take the $13,000,000 x .939 to get $12,207,000 taxable value. Then $12,207,000 / 1000 = 12,207. If the levy is $19.653 then you multiply 12,207 by 19.653 to get $239,904.171 in annual taxes.
$13,000,000 x .939 = $12,207,000
$12,207,000 / 1000 = 12,207
$12,207 x 19.653 = $239,904.171
Tennessee
Property Assessment Method: Tax rate
Re-Assessment Period: Every 4 years, re-assessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value x 40 % = Assessed Value x Tax Levy = Annual Property Taxes
​
​
Summary:
In Tennessee, property taxes are typically reassessed every 4 years. Tennessee tends to use the income approach to find Market value. Market value is then multiplied by 40% to get an assessed value. The assessed value is then multiplied by a tax rate to get annual property taxes.
​
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $1,000 annually. The tax rate is 1.8% in your city. You can estimate worst case scenario your taxes will increase from $1,000 up to $7,200 per year.
​
​
$1,000,000 x 40% = $400,000
$400,000 x 1.8% = $7200
Texas
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Market Value x 80-100% = Assessed Value x Tax Levy = Annual Property Taxes
​
Summary:
In Texas, property taxes are typically reassessed every year. Texas tends to use the income approach to find Market value. Market value is then multiplied by a range of 80%-100% to get an assessed value. The assessed value is then multiplied by a tax rate to get a taxable value.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 2.7% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $24.300 per year.
​
$1,000,000 x 90% = $900,000
$900,000 x 2.7% = $24,300
Utah
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, but a more thorough reassessment happens every 5 years, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
Formula:
Market Value x 55% = Assessed Value x Tax Rate = Annual property taxes
​
​
Summary:
In Utah property taxes are typically reassessed every year, but tend to be more thorough every 5 years. Utah tends to use the income approach to find Market value. Market value is then multiplied by 55% to get an assessed value. The assessed value is then multiplied by a tax rate to get a taxable value.
Example:
You are purchasing a property for $1,000,000. The current property taxes are $1,000 annually. The tax rate is 1.06% in your city. You can estimate worst case scenario your taxes will increase from $1,000 up to $5,830 per year.
​
​
$1,000,000 x 55% = $550,000
$550,000 x 1.06% = $5,830
Vermont
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
Market Value x Tax Levy = Annual Property Taxes
​
Summary:
In Vermont, property taxes are typically reassessed every year. Vermont tends to use the income approach to find Market value. Market value is then multiplied by a tax rate to get a taxable value.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.09% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10.900 per year.
​
$1,000,000 x 1.09% = $10,900
Virgina
Property Assessment Method: Tax rate
Re-Assessment Period: Every year in 2 installment, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
Formula:
( Assessed Value ÷ 100 ) × 2022 Proposed Base Tax Rate = Tax Amount
​
​
Summary:
In Virginia, property taxes are typically reassessed every year. Virginia tends to use the income approach to find Market value. Market value is then divided by 100 and multiplied by a tax rate to get a taxable value
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The millage rate is 92 in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $11.000 per year.
​
​
$1,000,000 /100 = $10,000
$10,000 x 1.1= $11,000
Washington
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
​
Formula:
Market Value x Tax Levy = Annual Property Taxes
Summary:
In Washington property taxes are typically reassessed every year. Washington tends to use the income approach to find Market value. Market value is then multiplied by a tax rate to get a taxable value.
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.09% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10.900 per year.
​
$1,000,000 x 1.09% = $10,900
West Virginia
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessments are done after property is sold
Taxable/Assessed Value Approach: Income approach
Formula:
Market Value x 60 % = Assessed Value x Tax Rate = Taxable Value
​
​
Summary:
In West Virgina property taxes are typically reassessed every year. Washington tends to use the income approach to find Market value multiplied by 60%. Assessed value is then multiplied by a tax rate to get a taxable value.
Example:
You are purchasing a property for $1,000,000. The current property taxes are $4,000 annually. The tax rate is 1.2% in your city. You can estimate worst case scenario your taxes will increase from $4,000 up to $7200 per year.
​
​
$1,000,000 x 60% = $600,000
$600,000 x 1.2% = $7200
Wisonsin
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Income approach
​
​
​
Formula:
Market Value x Tax Levy = Annual Property Taxes
​
​
Summary:
In Wisconsin property taxes are typically reassessed every year. Wisconsin tends to use the income approach to find Market value. Market value is then multiplied by a tax rate to get annual property taxes.
Example:
You are purchasing a property for $1,000,000. The current property taxes are $10,000 annually. The tax rate is 1.09% in your city. You can estimate worst case scenario your taxes will increase from $10,000 up to $10.900 per year.d
​
​
$1,000,000 x 1.09% = $10,900
Wyoming
Property Assessment Method: Tax rate
Re-Assessment Period: Every year, reassessment are done after property is sold
Taxable/Assessed Value Approach: Cost approach
​
​
​
Formula:
Market Value x 9.5%= Assessed Value x Mill Levy Rate = Annual Property Taxes
​
​
Summary:
In Wyoming, property taxes are typically reassessed every year. Wyoming tends to use the cost approach to find market value and then times the value by 9.5% to get an assessed value. The assessed value is then multiplied by a mill levy rate to get annual property taxes.
​
Example:
You are purchasing a property for $1,000,000. The current property taxes are $5,000 annually. The millage rate is 76 in your city. You can estimate worst case scenario your taxes will increase from $5,000 up to $7,220 per year.
​
​
$1,000,000 x 9.5% = $95,000
$95,000/ 1000 = $95
$95 x $76 = $7,220
NOTE: The data below was obtained as of Q3 2023. The data may or may not be accurate as of today. Our team sampled 3 counties from each state to obtain this data. Check with the local tax assessment office of the property you are analyzing prior to making any investment decisions - REL is not responsible for the accuracy or completeness of this data and is not liable in any way for any outcome.