Idea 13of 23Builds onBasic groceries have no sales tax
Property tax comes from a home's value
How does a town work out a home's property tax?
Today you'll discover
- what property tax is
- how the value sets the tax
- who pays it
Think firstA home worth $400,000
Say property tax is about 1% of a home's value each year. About how much is it here?
Decide first, then press Next. The whole bar is the home's value.
A long bar: a home worth $400,000. A thin piece at the right end is shaded: property tax, 1 of every 100 dollars. Under it: 1% of $400,000 = $4,000 a year. Then a second bar for a $300,000 home with $3,000. The last step shows a $500,000 home. Round, made-up numbers.
See the whole ideathe big idea and the key word, in one place
The big idea
Property tax is worked out from a property's value: a higher value pays more.
In OntarioA group called MPAC works out each property's value. Each town sets its own rate, so the same home pays different tax in different towns.
Easy to get wrongThe 1% here is a round number for learning. Real rates are different in every town, and they change.
Key word
- property tax
- a yearly tax on land and buildings, worked out from their value; paid to the town or a band council
About this modelRound, made-up numbers for learning; real amounts depend on many things.
Round, made-up numbers for learning; real amounts depend on many things.
Ready to use it?
- Find about 1% of a home's value.
- Say which home pays more property tax.