If a home is valued at $120,000 and the tax rate is $.755, what is the total property tax owed?

To determine the total property tax owed, you would multiply the assessed value of the home by the tax rate. In this case, the home is valued at $120,000 and the tax rate is $0.755 (which represents the tax in dollars per $100 of assessed value).

To conduct this calculation, first, convert the tax rate to a usable form for the total value of the home:

1. Divide the tax rate by 100 to convert it from a per $100 basis:

• $0.755 / 100 = $0.00755

2. Next, multiply the assessed value of the home by this adjusted tax rate:

• $120,000 x $0.00755 = $906

Thus, the total property tax owed is $906.

Understanding this method is vital because it shows how property taxes are calculated based on the value of the property and tax rates established by local government, and it reinforces the importance of accurate calculations in real estate.