The basic formula to figure the tax on a home using the Counties standard $2,000 homestead exemption is:
[(assessed value) - $2,000] * millage rate = tax due
Example: Fair market value means "the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm's length, bona fide sale." Assessed value is 40% of the fair market value. If a person that owned a home with a fair market value of $100,000 in an unincorporated area of a county where the millage rate was 25.00 mills, that person's property tax would be $950.00--[(100,000 * 40%) - $2,000] * .02500 = $950.00. Multiply $100,000 by 40% which is equal to the assessed value of $40,000 and subtract the homestead exemption of $2,000 from the assessed value. Then multiply $38,000 by the millage rate of .02500 which is equal to $950.00.