Property Taxes
Total annual property tax cost based on assessed value and tax rate.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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How This Value Changes Over Time
What This Means
A sample property priced at $385,000 with $2,850/month rent has a property taxes of $5,775 at Purchase (Month 0). Property taxes are assessed by local governments and vary dramatically by location — from under 0.5% in some states to over 2.5% in others. A property that looks attractive in a low-tax state may perform very differently in a high-tax market. Understanding your annual tax burden in dollars (not just as a percentage) helps you accurately budget, compare properties across markets, and stress-test your cash flow projections.
Where This Value Comes From
Property Taxes is not entered directly — it is calculated from Property Value and Property Tax Rate. See the formula breakdown above and the detailed inputs below.
Inputs That Determine Property Taxes
Calculations That Use Property Taxes
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
Property taxes are assessed by local governments and vary dramatically by location — from under 0.5% in some states to over 2.5% in others. A property that looks attractive in a low-tax state may perform very differently in a high-tax market. Understanding your annual tax burden in dollars (not just as a percentage) helps you accurately budget, compare properties across markets, and stress-test your cash flow projections.
Detailed Explanation
Annual Property Taxes is the total dollar amount you pay in property taxes each year, calculated by multiplying the property value by the property tax rate. This is one of the largest fixed operating expenses for a rental property and directly reduces Net Operating Income and cash flow. Unlike mortgage payments, property taxes typically grow over time as assessed values rise.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Other Expense 1
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Other Expense 2
USecond user-defined additional monthly expense for miscellaneous costs not covered by standard expen
Operating Expense Ratio
2Operating expenses as a percentage of effective gross income.
Total Operating Expenses
USum of all property operating costs (taxes, insurance, management, maintenance, CapEx, HOA, utilitie
Total Expenses
UAll annual costs including operating expenses and debt service.
Per Unit Operating Cost
2Annual operating expenses divided by number of units.
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