Property Tax Rollback Calculator

Rollback taxes recapture agricultural or special-use tax preferences.

Market value

Ag use assessment

Years benefit

Millage rate

Rollback tax

$1,437,750

Annual benefit

$255,600

Interest estimate

$159,750

How the math works

Annual benefit = (market − ag) × millage/1000. Principal rollback = × years. Interest added.

($15M − $800k) × 1.8% = $256k/yr × 5 yrs = $1.28M + $320k interest = $1.6M rollback.

How to Use

Enter market value.
Enter agricultural use assessment.
Enter years of benefit.
Enter millage rate.
Read rollback tax.

Frequently Asked Questions

Agricultural rollback?

Property assessed at agricultural use value (lower). When converted to non-agricultural use, rollback tax recaptures 3-10 years of tax savings. Many states have 3-5 year rollback periods with interest.

Typical amounts?

Farm converted to subdivision: $1-10M rollback typical. Long-held farms near growth areas: $10-50M rollback possible. Significant cost in land development. Always budget rollback in underwriting.

Other rollback triggers?

Historic preservation (break preservation easement). Green space conservation (dedicated land). Senior homestead exemption (sold to non-exempt buyer). Each state/locality has specific triggers. Review local law.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.