Real Estate Math
The annual property tax on a $250,000 home is $3,000. What is the effective tax rate?
A0.9%
B1.0%
C1.2%✓ Correct
D1.5%
Explanation
Tax rate = Annual tax ÷ Market value = $3,000 ÷ $250,000 = 0.012 = 1.2%. Using the values given ($250,000, $3,000), apply the appropriate formula.. The correct answer is 1.2%.. This is a common calculation on the Arkansas real estate exam.
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