Asked by Kesha

The assessed value of Patty's residential property was $200,000 in 2004. In 2006, the assessed value increased to $225,000. The property tax rate in both years was 1.2 percent. Patty earned $60,000 each year.

Determine Patty’s property taxes for 2004 by calculating 1.2 percent of $200,000 (multiply by 0.012), and then determine her taxes for 2006 by calculating 1.2 percent of $225,000. Subtract the 2004 tax figure from the 2006 amount. How much more did Patty have to pay for her property tax in 2006 than in 2004?

You can calculate the percentage of Patty’s income that she paid in property taxes with simple math. For instance, in 2004, Patty paid $2,400 in property taxes. Divide that number by her income, $60,000, and you get 0.04, or 4 percent. What percentage of her income did Patty pay in property taxes in 2006?


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