The property tax on a $370,000 home is $15,170. At this rate, what is the property tax on a home appraised at $190,000
The correct answer and explanation is:
✅ Correct Answer:
$7,794.59
🧮 Step-by-Step Calculation:
We are given:
- Property tax on a $370,000 home = $15,170
- New home value = $190,000
We assume the tax rate is proportional to the home’s value. So, we can set up a proportion to find the unknown tax: TaxHome Value=15,170370,000\frac{\text{Tax}}{\text{Home Value}} = \frac{15,170}{370,000}
Let x be the property tax for the $190,000 home: x190,000=15,170370,000\frac{x}{190,000} = \frac{15,170}{370,000}
Now solve for x: x=15,170370,000×190,000x = \frac{15,170}{370,000} \times 190,000 x=0.041×190,000=7,794.59x = 0.041 \times 190,000 = 7,794.59
💡 Explanation (300 words):
Property taxes are typically calculated based on a fixed percentage (tax rate) of the appraised value of a property. If you know the tax on one property, you can determine the tax rate and apply it to another property of a different value — as long as the tax rate stays the same.
In this case, we’re told that a $370,000 home pays $15,170 in tax. To find the tax rate, divide the tax by the home value: 15,170370,000=0.041 or 4.1%\frac{15,170}{370,000} = 0.041 \text{ or } 4.1\%
This tells us that the tax rate is 4.1%. To find the tax on a $190,000 home, we multiply the home value by this same rate: 190,000×0.041=7,794.59190,000 \times 0.041 = 7,794.59
So, the property tax on a $190,000 home at the same rate is $7,794.59.
Using proportions ensures accurate results, especially when the tax rate remains consistent across different home values. This technique is especially useful in real estate, budgeting, or finance-related calculations.
Understanding this principle helps homeowners estimate taxes when buying or selling homes and helps financial planners or real estate professionals quickly compare property-related expenses.