Property Tax Hike Impact Calculator
Calculate the impact of property tax increases on NOI and property value. Plan for tax assessment changes.
How it works
Tax increases reduce NOI, which reduces property value. Value change = NOI change ÷ Cap Rate.
Example
$5,000 tax increase reduces NOI by $5,000. At 6% cap rate = $83,333 value decrease.
FAQ
Can property tax increases be passed to tenants?
Depends on lease terms. NNN leases allow full pass-through, while gross leases may require owner absorption until renewal or rent increases.
How do property taxes affect property values?
Higher taxes reduce NOI dollar-for-dollar. The value impact equals the tax increase divided by the cap rate, amplifying the effect significantly.
Should I appeal a property tax increase?
Yes, if you believe the assessment is too high. Successful appeals can save thousands annually and prevent compounding value impacts.
How often do property taxes increase?
Most jurisdictions reassess every 1-3 years. Tax rates and assessments can both increase, though some states cap annual increases.
Can I budget for tax increases?
Yes, research local assessment cycles and budget 2-5% annual increases. Consider tax impact when setting rent increases and evaluating investments.