Question

To calculate property taxes, multiply the ______ by the tax rate.

a) Amount of mortgage interest
b) Assessed value
c) Market value
d) Square footage of the property

Answer 1

Option (b), To calculate property taxes, the assessed value of the property is multiplied by the tax rate.

Step-by-step explanation:

To calculate property taxes, you should multiply the assessed value of the property by the tax rate. The assessed value is often determined by a government official, such as a local assessor, and it may differ from the market value due to various factors, including legal caps on tax increases or limits on how often assessments can be revised.

Unlike sales tax, which is calculated by multiplying the price by the rate of sales tax, property taxes can represent a significant lump sum payment that property owners are required to make, typically annually or semi-annually.