Calculating property taxes

5 Replies

Hey guys, 

I'm trying to get a better sense of calculating property taxes. As an example, I'm looking at a property in Las Vegas. I went to Zillow and scrolled down to the price and tax history. From where I was able to access the county website. The county website tells me two different numbers: the total assessed value and the total taxable value (attaching a screen shot).

Then, I wanted to find the tax rate for the fiscal year 2021-2022 by clicking on the tax district. So in this case the tax rate is 2.9348 and it is multiplied by each $100 of the assessed value results in the property tax amount. 

So I would take the total assessed value for 2021-2022, which is ($38,915* 2.9348)/100=$1142.08/year. So I would pay $95 in property taxes per month? Is that the correct and accurate way to calculate property taxes when underwriting? Or would I use the total taxable value instead of the assessed value which would result in a monthly payment of $271.92? 

Thanks!

Most listings will tell you what the property taxes are.  Once you've seen a few, you should be able to get an idea of what they will be by looking at the list price.  Where I am, they are about 1% of the house price.

@Oleg Enik a lot of county websites offer a tax calculator tool where you can calculate and print a report to reflect the new tax amount based on the sale price, rather than manually trying to calculate it based on the tax Mill rate

@Theresa Harris thank for your response. Can you really trust those numbers on the listings? I feel like agents might play with the numbers in order to make it seem like a better deal that it is actually. Property taxes are one of the biggest operating expenses and can either make or break the deal, especially on a smaller one. 

Originally posted by @Oleg Enik :

@Theresa Harris thank for your response. Can you really trust those numbers on the listings? I feel like agents might play with the numbers in order to make it seem like a better deal that it is actually. Property taxes are one of the biggest operating expenses and can either make or break the deal, especially on a smaller one. 

 The numbers they get are supposed to be the most recent ones from the city and come form the seller.  So if you are in doubt, question the realtor. You should be able to tell if they are close by learning what the % of the price translates to the tax rate.  So in my area if I saw a house and taxes were 0.8% of list price, I'd check as it should be around 1%.  Also check the assessed value in case that is lower.