What is a tax rate and how is it linked to the assessed value?
The tax rate is related to the budgetary needs of a municipality, and is a percentage of a property’s assessed value. It is normally a composite of the municipal and education tax rates. Each property class has its own tax rate. The rate, multiplied by the assessed value, results in the amount of the property taxes. If, for example, the tax rate is 1.25% and the assessed value is $200,000, the property taxes would be $2,500.
