Property taxes are a cost that every homeowner should be aware of. The amount of your annual property taxes is determined by a number of factors, including the municipality where you live and the assessed value of your home. In this post, we’ll provide you with some steps for calculating your yearly property taxes.
Establishing your assessed value
Property values are used to determine the property tax you owe to your municipality. Property taxes are calculated as a percentage of how much your home is worth in your community. To determine how much you will pay in taxes, you need to establish the assessed value of your home.
In most cases, the assessed value of a home is calculated by multiplying its market value by some factor that varies depending on what type of property it is, or where it is located. The factor applied depends on each municipality’s rules and regulations regarding the assessment of residential and non-residential properties.
For example, if you own a home in Moncton and the assessed value of your property is $150,000, the tax rate will be 2.2%. Here’s how that works:
$150,000 x 100% = $150,000
$150,000 x 200% = $300,000
$300,000 / [$150k + $200k] = 2.2%
Once you are able to determine your property’s assessed value, there are a few additional steps you should take to calculate your actual property taxes. This will help you get a more accurate estimate of what you will pay in taxes each year. Most municipalities also have websites that provide detailed information about how property tax is calculated and the steps to follow. Here’s an overview of some of those steps:
1) Find out if your property is exempt from school taxes
If the municipality where you live has their own school board, there is a good chance that you will be required to pay additional taxes for their schools. If this is the case, you’ll need to know the amount of taxes that will be deducted from your property tax bill.
2) Find out if you have a separate land assessment
There are cases where both the municipal and provincial governments assess your property tax at different rates. This is because your home could fall under more than one taxing jurisdiction. At such times, the municipality can ask for an assessment of your home to be done by the province. If this happens, you will need to include in your calculations the combined property tax amounts that you will owe to both municipalities.
3) Check if there are other sources of income taxes and levies on your property (i.e. school, hospital)
Your property taxes will also include payments towards other government agencies that collect tax, such as the school board. Make sure you account for these in your calculations. There could also be special levies on your property that you should account for in this step.
4) Consider if there are additional fees or assessments on your property; account for these as well
Lastly, after you have factored in all of the above-mentioned charges, make sure you review them one last time to see if there are any other charges that were not initially included in your final calculation. You should review your calculations to make sure no major factors were overlooked when calculating how much you will pay in property taxes each year.
For more information about how you can calculate property taxes, visit:
http://www.flawsburg.com/government-relations/how-to-calculate-property-tax-in-new-brunswick.html
