property tax is a tax on the property that depends on its value. the property can be anything that produces income such as real estate property, private property, cars, lands, boats, etc…
definition of property tax
there are four types of tax property
- land.
- building.
- personal property.
- intangible property.
moreover, we can see every type with detailed information about what that property is and how the property tax is charged at what rate.
example for land property
the land tax was determined by the land valuation of site and location, the tax rates are very high in some countries and very low in some countries. so be aware of your taxes in your own country. for this reason, 200 countries have different tax rates on land property so I can’t talk to every country particularly.
so let’s take one example here. you have 3 3-acre of land in California, you’re renting your land for $2000 per month. however, your total income from your land is $24000 yearly.
on the other hand, the California tax rate for land income is 15%, so now you’ll be charged 15% of your yearly income of $3600 as property tax.
buildings property tax
the building tax is determined based on its similar use, which means it may be a rented apartment, house, real estate building (or) some other personal and commercial building.
the tax rates for certain buildings are different in 200 countries. so you may check on your own country’s Internal Revenue Service (IRS) website which helps you to identify the real tax rate on your building property.
so let’s take an example of building a property. let’s say you have an apartment in Singapore, which apartment contains 20 shops and the total rent income is $10,000 per month.
$120,000 per year, then you have thirty thousand dollars for amortization, which means labor salary, electric bills, water bills, etc…, when you have $30K expense. your annual income from your apartment is
$90,000.
Singapore puts a 20% tax rate on apartment building property. so now calculate for yourself what’s your tax amount of $90,000. which is $18000 you pay as tax yearly.
personal property
furthermore, personal property taxes are based on the value of your personal property. it imposed state and local taxes depending on the country. the personal tax property may be your car, personal small business,
any other personal asset, etc…
for instance, if you have 4 cars, each car produces an income of $1500, and your amortization and other expenses are $500 per month. so monthly your saving on each car is $1000. your total earnings from 4 cars is $4000 every month. the total income of the car is $48000 a year.
so what is the property tax rate on this income, for example, let’s take 18% tax. if you don’t know how to calculate the percentage to amount manually, then use your calculator to find the percentage amount.
first type forty-eight thousand dollars in your calculator, then multiply by 18% to get the answer. which is $8640 you pay as tax property.
intangible property
what is intangible? intangible means you cannot touch that property such as a trademark, patent, copyright, goodwill, etc… this type of property tax is more complex and the tax depends on the income of the intangible.
so better consider the tax rate, rules, and regulations for intangible property tax in your particular country. so let’s see an example if you owner of the copyright and you have the control to print the contained content, for every copyright you will earn money.
moreover, if your intangible asset produces $350,000 per year and your tax rate is 24%. follow the same method to calculate percentage, so the amount you pay as a tax is $84,000 per year.