How Do You Calculate A Property Tax Payment At Closing?
Calculating a property tax at closing is simple but requires knowledge of several important variables. You will need to know the assessed value of the property; this can be obtained by enlisting the services of an appraiser or another qualified professional. You will also need to know the tax millage in the area at the time of closing. Tax millage changes periodically, so it is important to note that the tax millage may have changed since its rate before closing. Once you have all these variables noted, you will be able to use a simple formula to determine the property tax payment. Identify the assessed value of the property and the tax millage for the area. For example, let’s assume you are closing a $200,000 property with a tax millage of 2%. Multiply the assessed value by the tax millage. For example, 200,000 x 0.02 = $4,000. This is the total annual tax payment that must be made on the property. Divide the number obtained in Step 2 by 12, since there are 12 months in a year and the
