Calculating Taxes

Example

How to calculate your real estate taxes example:

  1. This example illustrates a residential property in the City of Bryan with a market value of $100,000.
  2. To compute the taxable or assessed value, multiply the market value (1) times 35%.
  3. To compute the gross taxes, divide the taxable rate ($79.45) by 1000 and multiply the factor by the taxable value ($35,000).
  4. Multiply the gross taxes by the reduction factor of 31.8178 to compute the tax reduction.
  5. Subtract the tax reduction from the gross taxes to compute the taxes before non-business and owner occupancy credits.
  6. Multiply the total from step 5 by 8.5457% to compute the non-business credit.
  7. Multiply the total from step 5 by 2.1364.5% to compute the owner occupancy Credit.
  8. Subtract the amounts computed in steps 6 and 7 from the total computed in step 5 to compute the net taxes due.

Sample: Bryan City Voted Millage = 79.45

Value/Multiplier Total
Market Value of Property $100,000
Taxable Value (35% of Market Value) $ 35,000
Gross Real Estate Taxes ($35,000 times .07945) $ 2,781
Less: Tax Reduction ($2,781 times 31.8178%) $ (885)
Subtotal $ 1,896
Less: 10% Non-Business Credit ($1,896 times 8.5457%) $ (162)
Less: 2 1/2% Owner Occupancy Credit ($1,896 times 2.1364%) $ (41)
Net Taxes Due $1,693