Property taxes are part of homeownership and support thriving communities with schools, emergency services, and infrastructure. Many homeowners may not know how these taxes are calculated or why they change from year to year. Understanding the basics can help you plan ahead and avoid surprises.

How Are Property Taxes Calculated?

Your property tax bill is based on your home’s assessed value and the local tax rate, also sometimes called a millage rate. Local governments determine a property’s taxable value and then apply the tax rate.

Why Do Tax Bills Increase?

Factors like reassessments, renovations, or tax rate increases can affect tax amounts. Changes in neighborhood values or voter-approved funding measures can also affect the amount owed each year.

Can the Bill Be Lowered?

Depending on the location, homeowners may qualify for exemptions like a homestead or senior discount. If a homeowner believes their assessment is inaccurate, they may have the right to appeal. Review the annual assessment notice to double-check for accuracy.