Property taxes are primarily based on what factor?

Property taxes are primarily based on the assessed value of the property. This value is determined by local tax assessors who evaluate the property’s market value as well as various characteristics, such as size, location, and improvements made to the property. The assessed value forms the basis for calculating the amount of property tax owed.

Local governments utilize this assessed value in conjunction with the property tax rate to derive the total tax owed. This system links the financial responsibility of property owners directly to the valuation of their property rather than external factors like the broader market conditions of neighboring properties or the property's age. While location and market conditions can influence the assessed value, and consequently the taxes owed, it is the assessed value that is the definitive factor in determining the property tax amount.