|Do you pay too much property taxes?
Here is a formula to figure out whether you pay too much property tax. It is based on the assessment of your property (which can be found on your tax bill), the market value of the property and the assessment ratio set by the state annually for your town, city or village.
The ratio represents the typical assessment in a community taken as a percentage of market value. In other words, a ratio of 5 means that the average house in that town is assessed at 5 percent of its market value, which is common in Westchester, New York.
The formula to use is:
Estimated market value of property X (assessment ratio -:- 100) = Your assessment
For example, a house with a market value of $300,000, located in a community with an assessment ratio of 5, should have an assessed value of $15,000. If the actual assessed value is higher, that means the property may be overassessed, leading to an inflated tax bill.
Estimated market value Assessment ratio Assessed value $300,000 X ( 5 -:- 100) = $15,000
To calculate the actual and correct tax, divide the differing assessments by 1,000 and multiply by the local tax rate.
We hope this helped.
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