How to Calculate a Property Tax Percentage Increase

Home improvements can raise your property value and your property taxes.

Home improvements can raise your property value and your property taxes.

Property taxes help many state and local governments, such as counties and school boards, raise money to cover the cost of expenses. As expenses increase, so might your property taxes. Your property taxes might also increase if the value of your home increases disproportionately to the value of other homes in the area. To figure the percentage increase in your property taxes, you need to know what you used to pay and what you pay now.

Subtract your old property tax bill from your new property tax bill to figure the increase. For example, if last year you paid $2,000 in property taxes and this year you paid $2,500, the increase is $500.

Divide the increase by your old property tax bill to get the rate of increase. In this example, divide the increase of $500 by the old property tax bill of $2,000 to get 0.25.

Multiply the rate of increase by 100 to find the property tax percentage increase. Finishing the example, multiply 0.25 by 100 to find your property taxes increased by 25 percent.

 

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