In the United States, every state charges property taxes on real estate. These taxes are used, in most cases, to fund local government budgets, supporting public schools, roads, police and fire support, as well as the local government itself. In some cases, property taxes also support water management systems, hospitals and other state specific requirements.
When you look at property taxes by state, you’ll quickly see that some states charge far more than others. All states use the same basic principles to calculate property taxes. First the county or city tax assessor estimates the property value of all the property in the county. Then, the tax office evaluates the amount of money needed for the year to support the budget, and determines the millage rate. The millage rate is the amount per $1000 of value on the house that will be used to calculate each resident’s final tax bill.