Tax Increment Financing Calculator
Calculate available TIF funds and annual increment revenue based on property value increases and tax rates.
How it works
Calculates tax increment revenue from increased property values above the frozen base. Revenue can support bonds for infrastructure improvements within the TIF district.
Example
$10M base value increases to $25M at 2.5% tax rate = $375,000 annual TIF revenue to fund improvements.
FAQ
What is Tax Increment Financing (TIF)?
TIF is a public financing method that uses future gains in taxes to finance current improvements that will create those gains. It captures increased property tax revenue from development.
How does TIF capture tax increment?
TIF freezes the property tax base at pre-development levels. Any tax revenue from increased property values above the frozen base goes to the TIF fund.
What can TIF funds be used for?
TIF funds typically finance infrastructure improvements, land acquisition, site preparation, utilities, parking facilities, and sometimes affordable housing or economic development incentives.
How long do TIF districts last?
TIF districts typically have 20-30 year terms, though this varies by state. After expiration, all property tax revenue goes to normal taxing bodies.
What are the risks of TIF financing?
Property values may not increase as projected, development may be delayed, or economic conditions may change, reducing available TIF revenue for bond payments.