The annual property tax is primarily determined by which factors?

The annual property tax is determined primarily by the assessed value of the property and the local property tax rate. The assessed value reflects the estimated worth of the property as determined by the assessor, based on various factors including market trends, property characteristics, and recent sales data. This valuation is critical because property taxes are calculated as a percentage of this assessed value.

The local property tax rate, which can vary from one jurisdiction to another, is established by local governments to fund services such as education, infrastructure, and public safety. Thus, the combination of assessed value multiplied by the local tax rate gives a clear picture of how much property tax will be levied on a property owner.

While factors like neighborhood desirability and the number of improvements can influence assessed value indirectly by affecting market value, they do not directly determine the property's tax liability as assessed value and tax rates do. The property owner's income, while important for other taxation and financial considerations, is not relevant to the calculation of property taxes.