How property tax is calculated

The basic sum is the same almost everywhere: taxable value times the local rate.

The three parts

1. Assessed value. A local assessor puts a value on the home. Some states tax only a set share of market value.
2. Exemptions. Many places take an amount off the taxable value, often for a primary home, seniors or veterans. You usually have to apply.
3. The rate. Counties, cities, school districts and special districts each add a rate, so it changes from one side of a boundary to the other.

Why neighbors pay different amounts

Some states limit how fast the taxable value of a home can rise until it's sold. Two identical houses can then carry very different bills, because one changed hands recently. Exemptions and improvements add to the gap.

If your assessment looks wrong

Every state has some way to appeal. Check your notice for the deadline, since these windows are often short, and compare your value with similar homes nearby.

Where to read your state's rules

The Lincoln Institute of Land Policy keeps a state-by-state guide to property tax rules. Your county assessor's site has the actual rates and forms. For what owners pay in each state, see the full table.