How to use it
- Use the formula below with your own figures.
The formula
Tax = assessed value × local rate.
Worked example
A 1% rate on a $300,000 home is $3,000 a year.
Frequently asked questions
Who sets the rate?
Local authorities.
Can it change?
Yes — with reassessments and rate changes.
Tips
- Know your marginal vs effective rate.
- Set money aside as you earn if tax isn't withheld.
- Keep receipts for anything deductible.
Key terms
- Marginal rate
- The rate on your top slice of income.
- Effective rate
- Your overall average tax rate.
- Deduction
- An amount subtracted from taxable income.