Question

If a home is valued at $250,000 and the property tax rate is 2 percent, how much will the owners pay in property taxes?
$50
$500
$5,000
$50,000

Answer 1

To calculate the property tax one must know the total value of the property that is the value of land and the whatever is build on that land, add these two to get the actual value of the property.

After this add the current local government tax rate and the property tax rate for the local agencies and multiply that with the value of the property to calculate the property tax.

Property tax = $250000*2/100 = $5000

The answer is $5000 ( C )