Real Estate Math
A Massachusetts property is assessed at $740,000 and has a tax rate of $13.50 per $1,000. If the homeowner has a residential exemption of $300, what is the annual net tax owed?
A$9,690✓ Correct
B$9,990
C$10,000
D$9,300
Explanation
Gross tax = ($740,000 ÷ $1,000) × $13.50 = 740 × $13.50 = $9,990. Net tax = $9,990 − $300 = $9,690. Using the values given ($740,000, $13.50), apply the appropriate formula.. The correct answer is $9,690.. This is a common calculation on the Massachusetts real estate exam.
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