From the research that I've done, I've found to calculate Property Tax that you use the Millage Rate for the county that your purchasing in. Correct me if that is not right.
After searching for the Millage rate of my county, I found a 100.96 total millage rate(county, school, fire, garbage etc.) Using the example of a $75,000 assessed value property, multiplied by the millage rate would equal a property tax of $7,572 per year(75,000*.10096). Unless I'm putting the comma in the wrong place, that seems really high compared to all the deal analyses I've looked at on the forum. Yes there different areas but they tend to be in the low thousands or hundreds of dollars.
This is assuming no deductions, such as homesteaders and others. The area is Lee County, Mississippi. The Millage rate I used was was from FY 2012-2013 but I haven't been able to find the most recent. Just doing this for practice mainly. Thanks for any help
are you figuring per thousand or per dollar?
your rate is probably .010096 which would be $757.2 per year look up address of property for sale on zillow and scroll down to tax statistics there is no 10% rate usually 1-3%
@Steven Picker Thanks for the response, I think I figured out what happened. I was using .10096 instead of .010096. That makes the number seem much more realistic for prop tax and gets it closer to what zillow has.
@Boyd McClean I'm not sure but i'd say per dollar. Though I'm not sure how I would differentiate between those two.
o calculate the property tax, the authority will multiply the assessed value of the property by the mill rate and then divide by 1,000. For example, a property with an assessed value of $50,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $1,000 per year.
@Steven Picker That makes a lot more sense. THANKS!
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