State property taxes are calculated by multiplying the assessed value of the property by the applicable tax rate. The assessed value is typically a percentage of the fair market value, determined by the local tax assessor. Tax rates are set by state and local governments, and can vary based on the property type, location, and intended use. For example, the property tax rate for a residential property may differ from that of a commercial property. Some states also allow for various exemptions or credits that can reduce the taxable value. [Source: https://www.investopedia.com/terms/p/propertytax.asp]