Property Tax
Annual property tax as a percent of value. Enter a local annual bill or a reviewed local effective rate; a blank field uses a TrueCap default of 1.1% — replace it with your local number.
Operating expenses
Why Property Tax matters
Property tax is the second-largest expense after mortgage on most deals. State rates vary wildly: 0.3% in Hawaii vs 2.5%+ in some Texas MUD zones. Always pull the ACTUAL current tax bill from the county appraisal district — don't trust Zillow's estimate.
How to check Property Tax before you rely on it
Pull the current bill from the county assessor or treasurer for the parcel itself, then ask how the assessment changes after a sale, because many jurisdictions reset it to the purchase price. Check for exemptions the seller receives that you will not, and for any special district or municipal charges outside the base rate. Enter the annual amount you will pay in your first full year of ownership, not the seller's figure.
Related terms
- NOI (Net Operating Income)
- Gross annual rent minus all operating expenses, before debt service and income tax.
- Cap Rate
- Net Operating Income ÷ property value. The unleveraged return a property generates, independent of f…
Where Property Tax shows up in TrueCap
Operating expenses are line items in the analyzer's expense section, each labeled with its source — a HUD or FRED benchmark, a TrueCap default you can replace, or your own number. Property tax is always your local figure. Together they produce NOI and cash flow after reserves, and the results view shows how much each one moves the decision.