A lot of complicated math is used to calculate property taxes, and states compute rates according to their unique formulas. All share two important components, however: a property’s assessed value and the tax rate. The percentage tax rate is applied to the value to arrive at your tax bill.
Percentages are a good way to compare state property tax burdens because they provide a standardized number.
Someone in State A might pay $10,000 a year on a home worth $1 million, while someone in State B pays $10,000 a year on a condo worth $150,000. The person in State B has a more onerous tax burden. The person in State A is paying only 1% of their home’s value while the one State B is paying almost 7%, although they’re both paying the same tax dollar amount.