Real Estate Math

A Maine property has a total assessed value of $420,000. The homestead exemption is $20,000 and the mill rate is 12.5. The annual tax bill is:

A$4,750
B$5,000✓ Correct
C$5,250
D$5,500

Explanation

Taxable value = $420,000 − $20,000 = $400,000. Tax = $400,000 × 12.5 ÷ 1,000 = $5,000. Using the values given ($420,000, $20,000), apply the appropriate formula.. The correct answer is $5,000.. This is a common calculation on the Maine real estate exam.

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