Property tax is levied by the government through local municipal authorities on the real estate owners. The tax collected is utilized to maintain civic amenities such as roads, sewage, parks and other local infrastructural facilities. The property tax varies with respect to the area and is imposed on both residential and commercial real estate. The civic bodies use different property tax calculators to assess the amount to be levied but a standard formula is used throughout the country to decipher the amount of property tax.
Property Tax is calculated by the municipal authorities after factoring in and assessing diverse set of factors such as:
The property owners can also check the amount which would be levied on them through various property tax calculators available online. Enter the required details accurately and the property tax calculator will provide you with an accurate estimation. The property tax calculator employs the following formula:
Property Tax = Base Value * Built-up Area * Properties' Age* Properties’ Type * Properties' Usage * Floor Factor
The income from the house property can be calculated by accounting the following points:
Although both property and house tax are collected by the local government authorities. Property Tax covers a broader concept as it is levied on all types of properties be it residential, institutional and commercial. However, the house tax is exclusively for residential property. You can say house tax is a subset of property tax.