How Taxes are Figured

Calculating Assessed Value
To calculate assessed value, multiply the appraised value by one of the following state assessment rates:

Property Type

Assessment Rate

Agricultural buildings 25%
Agricultural land* 30%
Commercial / industrial 25%
Not-for-profit 12%
Public utility 33%
Residences on farm home sites 11.5%
Residential 11.5%
Vacant lots 12%
All other rural and urban property 30%

*By law, agricultural land is not valued at fair market value, but upon its productivity and use.

If the fair market value of your home is $150,000, and the assessment rate is 11.5%, this would mean the assessed value would be $17,250 ($150,000 x 0.115 = $17,250).

Calculating Your Tax Amount
Mill levies set by taxing groups like school districts, cities, and counties are used to calculate your taxes. Let's assume the combined mill levy has been set at 120 mills. Multiply the assessed value of your property ($17,250) by the mill levy (120 mills or 0.120). The answer is $2,070, which is your tax amount.

Market value of home


Assessment rate - Residential (11.5%)

x 0.115

Assessed value (AV)


Mill levy ($120 mills per $1,000 AV)

x 0.120

Amount of taxes