How to calculate property tax?

Property tax is an amount that a property owner needs to pay to the government. But the amount that is needed to be paid is not specific, that is different for each property. Property tax is calculated on the basis of various factors. But many property owners seem confused about property tax how to calculate it.  Here in this answer you will learn what all things to consider for house tax calculation and how to calculate property tax.

Methods to calculate property tax

• Capital Value System 

Under a capital value-based system the tax is calculated on the basis of the market price of a property. The market value of the property is set by the state municipal government. 

• Unit area system 

Unit Area Value System is calculated on the basis of the per unit price of the built-up area of the property. The per unit piece is decided according to the expected capital gain from the property.

• Rateable Value System

The tax is calculated on the basis of money earned by a person on a property by receiving monthly rent. THe valuation of the rent is determined by the municipal authority. According to the location, size, and condition of the property.

Formula for tax calculation 

Property tax = base value × built-up area × Age factor × type of building × category of use × floor factor.

Factors considered while paying house tax Rate of tax

• Unit area value of a property 

This value is calculated as per the market area where the property is located. The market value is decided by the municipal government. The value is set as per square feet rate.

• Unit area of a property  

Unit area is the calculation of total per square carpet area of a property

• Age factor of a property

Age factor is also a part of property tax. Under age factor if the property is 10 years older at the time of tax payment then the tax will be less. As municipality has set that the old property has less market price

• Use of a property  

If the property is in use for commercial purposes then the tax will be higher.

• Occupancy type on a property 

If the occupancy on a property is rented

out, taxes are taxed higher than self-occupied ones.

You can calculate your property tax on various online tax calculation calculators.

The property tax assessment or property tax calculation can also be done on the state property tax website. Once you fill in all the information related to the property then before proceeding you will see calculate your tax and there you can calculate your property tax.

This is the process of

property tax how to calculate.

Property tax is an yearly tax which is paid to the government if you own a property or land in the country. The property tax is calculated on the basis of various factors such as:

• State and are in which you own the property

• Type of property you own

• Details such as location , area, infrastructure and construction of your property (including number of floors)

I know it is confusing to know things about property tax, how to calculate property tax, how can you pay property tax online. Well, I have all the answers. Let us begin with the following information.

The basic formula to calculate property taxes is

Wherein, age factor refers to the age of the property, floor factor refers to the number of floors your property has.

You can check the property tax payable for your property online easily on the official website of tax payment in your state. Let us take Pune for instance. Here is how to calculate the property tax payable in Pune.

1. Visit the official website of Property Tax, Pune Municipal Corporation.

2. Enter peth id, construction year, construction type, property carpet area, mobile number and submit the details

3. You will get the exact amount to be paid as property tax.

4. You can make the payment online via debit card, credit card or net banking.

The municipal bodies collect property tax as it is one of the major sources of income of the state. The tax collected by the government of a state is used to provide all the amenities and facilities such as sewage systems, water supply, cleanliness and lighting and much more.

Every state has its own criteria to calculate the property tax, it is advisable to visit the official website and know how to calculate property tax. Remember, if you haven’t paid property taxes previously, a penalty will be imposed which will reflect on your current amount of property tax.