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:
To find the property tax on a home appraised at $190,000, given that the tax on a $370,000 home is $15,170, we can set up a proportion based on the idea that the tax rate is the same for both homes.
Step 1: Calculate the tax rate
We first find the tax rate for the $370,000 home. Tax Rate=15,170370,000=0.041=4.1%\text{Tax Rate} = \frac{15,170}{370,000} = 0.041 = 4.1\%
Step 2: Apply the tax rate to $190,000
Property Tax=190,000×0.041=7,790\text{Property Tax} = 190,000 \times 0.041 = 7,790
✅ Correct Answer: $7,790
📘 300-Word Explanation:
Property tax is typically assessed as a percentage of a property’s appraised value. This percentage, known as the tax rate, is applied uniformly within a jurisdiction, which means homes of different values are taxed proportionally.
In this case, a $370,000 home has a property tax of $15,170. To find the equivalent tax on a $190,000 home, we need to determine the tax rate and then apply that same rate to the lower appraised value.
We calculate the tax rate by dividing the tax amount by the property value: 15,170370,000=0.041, or 4.1%\frac{15,170}{370,000} = 0.041, \text{ or } 4.1\%
This tells us that for every dollar of property value, the owner pays 4.1 cents in tax.
We then use this rate to find the tax on the $190,000 home: 190,000×0.041=7,790190,000 \times 0.041 = 7,790
So, the property tax on a $190,000 home at this rate would be $7,790.
This method assumes a flat tax rate, which is common in many areas, although some jurisdictions may use progressive rates or apply exemptions. Using proportions like this provides a reliable method for estimating taxes when the rate remains unchanged.
In summary, by keeping the same tax rate, you can find the tax on any property by multiplying its value by the rate — making this a practical and scalable approach for tax estimation.